If you going to replace the ignition switch by the book you need to remove the ignition key lock cylinder. There are probably other guys that replaced it without removing the lock cylinder and I tried myself going that path without succés.
When I replaced mine I just pulled it out and in with the new one, I could start my truck but I just had to blow on the key and the battery light will come on. So I did it the second time by the GM service manual and now it's working like it did when the truck was brand new.
To do it by the book you need to the following:
1. Key out, remove old ignition switch
2. Put key back in and turn to ignition on (not start)
3. Use a small allen wrench in a small hole on top of lock cylinder case to release the lock for the cylinder (you might have to remove the antenna around the lock cylinder first if you have one).
4. Pull out the lock cylinder and leave the key in the cylinder.
5. Look inside the lock cylinder housing and you see a rektangular slot, use a BIG skrewdriver or simlular to turn that rektangular counter Clock wise to the stop (you might have to push on that small brasscylinder next to the lock cylinder, it's the park lock release button).
6. Put the new ignition switch back in but it's very important that you did NOT turned the gear wheel in any other position then it was when you bought it.
7. Now use your skrewdriver or whatever you used to turn the rektangular slot and turn it Clock wise to ignition on, just Before the return spring loaded start (you can feel the spring load if you turn it slowly).
8. Put the lock cylinder back in, lined up with the rektangular slot.
9. Turn the key to ignition off and connect the Cables and trim around the column, you can try it Before you do all the trim just to make sure it's working.