Rarely will an ERP implementation return a positive ROI. Digital transformation, on the other hand, can create competitive advantage and position your organization for future growth – but not without a detailed change management strategy and a strong change management methodology.
What is Large-scale Change?
Whenever an organization implements new technology, it should consider the possibility of large-scale change. New technology is an opportunity to reengineer business processes and improve efficiency. This proves more difficult after a technology solution is already in place. Maybe you want to stick to business as usual for now, but what about five years down the road when you want to pursue digital transformation? Technology configured for your old business processes may not support new processes, at least without extensive customization.
That’s not to say you can’t pursue a change management initiative without implementing new technology. Many organizations want to transform their culture or introduce incremental process improvements without touching technology. However, a full-scale business process reengineering initiative typically necessitates at least an evaluation of your current technology.
How to Implement Large-scale Change
Here’s a high-level overview of an effective change management methodology:
1.Prepare for Change
Executive sponsorship is key for project success. Executive sponsors should secure resources for the project team, encourage manager buy-in and educate employees about upcoming changes.
2. Manage Change
Employees and executives have different perspectives on change. While the executive might see process efficiency and cost savings, the employee sees new required skills, changes to their work environment and a possible loss of status. That’s why you need a change management methodology that addresses communication, resistance management and training.
3. Reinforce Change
SAP vs. Oracle Case Study
SAP and Oracle both invest heavily in cloud technology. However, our client was skeptical about cloud scalability and unsure if the products were mature and proven.
Reducing Resistance to Change
Employees may refuse to learn new processes, or they may speak negatively about the project amongst coworkers. This can slow down your digital transformation, and you might experience quality problems and reduced productivity. If employees don’t use your new software or follow new business processes, you won’t achieve the business benefits you expect.
One way to reduce resistance to change is to increase employee involvement. For example, employees can help brand the project. You can run a contest and ask them to submit potential project names and project logos.
You can also reduce resistance by answering key questions: Why are we changing? What are we changing? Who will be changing? Most importantly, you should answer the question, What’s in it for me? You should explain how employees will benefit from the project, not just how the organization will benefit.