This session will cover three main areas of managing organizational change and the impact to culture during a cloud transformation. The first is why cloud transformations have such a significant impact on organizations and people. Second, we'll review an overview of an organizational change management framework, and finally, we’ll discuss how to apply an Organizational Change Management framework to the cloud, wrapping up with some case studies to inspire you.

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How to Manage Organizational
Change and Cultural Impact
During a Cloud Transformation
Dean Samuels
Head of Solutions Architecture
Amazon Web Services – Hong Kong & Taiwan

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Agenda
Cloud Transformation
• Why is it different?
• Impact to culture
Organizational Change Management (OCM)
• What is it?
Cloud Change Management Framework
• How do you apply OCM to the cloud?

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Cloud Transformation
Cloud adoption can help
increase agility and
productivity, while
reducing costs
The impact of cloud adoption
will be felt across the
entire organization
The journey to the cloud will
have an impact on your
organization’s culture

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What is Culture?
Culture Is “the Way We Do Things Around Here.”
• Culture is the “software of the mind.” It is the core
logic that organizes people’s behavior
• The culture reflects the lessons learned that are
important enough to pass on to the next generation
• Values, beliefs, and practices that have been
developed and reinforced over time

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Cultural Trends We are Seeing
Moving from
• Failure is not an option
• Command-and-control
• Silos “throw it over the wall”
• Build/deploy in place
• Long due diligence
• Standardization
• Talent outsourcing
Moving toward
• Learning (start small, experiment, and iterate)
• Decentralized ownership (guardrails via cloud CoE)
• DevOps and cross-functional teams
• Automate: Infra-as-code, redeploy every time
• Adopt early and often
• Reference architecture, no religion, few standards
• Talent insourcing/niche partnering

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How Culture Impacts the
Cloud Journey
Levers that influence culture:
• New cultural framework: What is important
in how we operate in a cloud environment
• New rules of engagement: Cloud governance
• Personal branding: Reinforcing and recognizing
new operating behaviors and ways of working
• Leadership: Leaders lead the way
Cultural issues are at the root of
many failed business
transformations, yet most
organizations do not assign explicit
responsibility for culture.”
—Gartner, 2016
“

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Amazon’s Culture: Leadership Principles
1. Customer obsession
2. Ownership
3. Invent and simplify
4. Be right, a lot
5. Hire and develop the best
6. Insist on the highest standards
7. Think big
8. Bias for action
9. Frugality
10. Learn and be curious
11. Earn trust
12. Dive deep
13. Have backbone;
disagree and commit
14. Deliver results

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How to Influence Cultural Change?
Identify desired attitudes
and behaviors for
successful cloud
adoption
Align explicit
and implicit
reward systems
Align hiring,
training, and
incentive practices
Communicate
attitudes and
behaviors

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Cloud Transformation Challenges
People and processes
When it comes to cloud adoption, the
biggest challenge isn’t technology—
it’s the people and processes that must
change and adapt.”
“
13 Biggest Challenges When Moving
Your Business To The Cloud
—June 2017 article

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Common Failure Points
70% of unsupported change
efforts fail to achieve their
intended outcomes.” 1
“
1Based on the books and articles by John P. Kotter, 2012
Harvard Business School Publishing

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Common Failure Points
Top Obstacles to Change Success2:
• Lack of active, visible sponsorship
• Insufficient change management resourcing
• Lack of buy-in from project teams
• Manager and supervisor resistance
• Employee resistance
2Based on Prosci Best Practices in Change Management—2016 Edition

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A Case for Organizational Change Management
Applying tools and processes to the people
side of change, to transition from a current
state to a future state to successfully
achieve a particular outcome.” 1
“
1Change Management; The People Side of Change, Hiatt & Creasey, 2012

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Change Management: Key Tenets
Key tenets to recognize when considering
change management:
1. Change management is an enabling framework
for the people side of change
2. Organizational change requires
individual/personal change
3. The scope and type of change inform
the change management plan
Expect reluctance and resistance to
change from across the organization:
1. Employee resistance to
change is the Rule!
2. The RIGHT solutions is NOT in and of Itself
enough to motivate employees
3. Message conveyed ≠ message received
Change occurs for a REASON—The #1 purpose is to get to a better place

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Recognizing Different Types of Change
Focused on changing
toolsets + skillsets
Focused mainly on
changing toolsets
Improvement Transitional
Focused on changing
toolsets + skillsets
+ mindsets
Transformational

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Solution Drivers
• Change communication
• Change management
• Project management
• Training
• Change leadership
• Change communication
• Change management
• Project management
• Training
• Change leadership
• Process design
• Change communication
• Change leadership
• Leadership alignment and
sponsor plan
• Overall change management
strategy and plan
• Training and orientation
• Organization design
• HR strategy and support
Improvement Transitional Transformational

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Apply a Structured Change Management Approach to
Accelerate Your Cloud Transformation
1. Mobilize Team
2. Align Leaders
This change is critical
and will succeed!
We are all leaders of
this change!
3. Envision the Future
4. Engage the Organization
This is the vision,
where we are going!
This is how we get
there together!
5. Enable Capacity
6. Make It Stick
This is how we make
it happen!
Are we where we
want to be?

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Apply a Structured Change Management Approach to
Accelerate Your Cloud Transformation
1. Mobilize team
2. Align leaders
This change is critical and will succeed!
We are all leaders of this change!
• Confirm sponsorship
• Secure resources, expertise
• Form strong coalition of leaders
• Build momentum
• Form team to lead change—executive sponsors, stakeholders, line
leaders, PMO, change management, communication, training, etc.
• Establish program charter, roles, milestones
• Build guiding coalition, mobilize leadership
• Shape program governance structure
• Assess and align change leadership roles
Key steps and
considerations
• Build a coalition—Cloud Center of
Excellence (CCoE)
• What does a CCoE do?
• Why is a CCoE important in the journey
to cloud adoption?
Source: Based on the work from our OCM consulting partner

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Best Practice: Change Leadership Through a CCoE
Cloud Services or Cloud Center of Excellence
Business Application Services
Cloud Engineering Cloud Business office
OperationsInfrastructure Security
Enterprise
Architecture
Governance
Training and
Engagement
Organizational
Change
Management
Finance

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Apply a Structured Change Management Approach to
Accelerate Your Cloud Transformation
3. Envision the Future
4. Engage the Organization
This is the vision, where we are going!
This is how we get there together!
• Articulate vision and roadmap for transition to cloud
• Mobilize organization, build commitment, create change urgency
• Establish communication channels to gain and maintain buy-in,
support, and participation throughout entire transition
• Leaders communicate future cloud vision (via comprehensive messaging plan)
• Impacted business leaders reinforce new operating model (process/tech/org)
• Identify/assess impacted stakeholders
• Enlist and mobilize a Change Champion Network
• Drive ongoing communication, feedback—two-way conversations
• Address “how does this impact me?”
• Celebrate progress and control issues
Key steps and
considerations
• Paint a compelling vision of the future
• Communicate the vision (often)
Source: Based on the work from our OCM consulting partner

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Apply a Structured Change Management Approach to
Accelerate Your Cloud Transformation
5. Enable Capacity
6. Make It Stick
This is how we make it happen!
Are we where we want to be?
• Ensure successful transition to cloud
• Align IT org structure, roles, processes with AWS platform
• Ensure all IT staff/key stakeholders can operate in new environment
• Ensure Cloud benefits and objectives are achieved
• Identify change impacts to IT roles, policy, org structure, process, etc.
• Modify IT roles, org structure, job descriptions and processes (if needed) to support AWS
• Align IT staff to new operating model
• Develop and implement targeted training
• Setup measurement structures
• Measure and evaluate outcomes
• Course correct where needed
Key steps and
considerations
Institutionalize new approaches
• Lasting change requires
alignment with shared
company culture and values
• Consider all aspects of your
operating model
Source: Based on the work from our OCM consulting partner

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Best Practice: Define Your Desired Operating Models
Operating Model Evolution:
• Realize your operating model(s) will change and be
intentional about where your organization wants to land
• Most companies will have multiple operating models
OpsDesign
Cloud
Engineering
Dev Team/
COTS
Infra
Apps
OpsDesign
DevOps
Cloud
Engineering
Infra
Apps
MSP
MSP

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Best Practice: Evolution of Roles
Early in Your Journey, Define How IT Roles and Duties Will Evolve
Duties Cloud Infrastructure Role Application Role
Design/validate/expand solution-independent
architectures and requirements
Cloud Enterprise Architect Cloud Enterprise Architect
Design/validate/expand solution-dependent
architectures and requirements
Cloud Infrastructure Architect Cloud Application Architect
Build the infrastructure/application Cloud Operations Engineer Application Developer
Specify security requirements Cloud Security Architect Cloud Security Architect
Manage, monitor, and enforce security Security Operations Security Operations
Build and manage fast and scalable workflows DevOps Engineer DevOps Engineer
Design and build automation solutions DevOps Engineer DevOps Engineer
Perform cost coding and cost optimization Financial Manager Financial Manager
Manage operational teams Program Manager Program Manager

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Thank You!

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Appendix

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Signs and What You May Hear