If you’re thinking about implementing a new ERP system or initiating another type of large-scale change you might be worried about how your employees will react. After all, people aren’t always thrilled about change.
The truth is many digital transformation projects are plagued by a lack of communication and the lack of a strategic approach to addressing change resistance.
Today, we’re exploring why many organizations’ efforts to guide employees through change are woefully unsuccessful. Here are the most common reasons why change projects fail and how you can employ effective change management strategies to get the most value out of your technology investment.
Why do Change Projects Fail? [6 Reasons]
1. You Don’t Understand Organizational Change Management
Overlooking change management components like coaching plans, feedback loops, and focus groups can lead to a high ERP failure rate.
If you’re going to develop a change management plan, you must go “all in” from the start. This way you avoid having to ask top management for additional resources and budget down the road.
A Failed Payroll System Implementation
Panorama’s Expert Witness team was retained to provide a forensic analysis and written report to the court regarding the failed implementation of a major software developer’s ERP/payroll system.
2. You Don’t Anticipate the Impact of Change on Employees
Organizational change can create fear and uncertainty, which can fuel employees’ unwillingness to embrace new processes and technology.
What if the learning curve is too steep for me? What if I can’t keep up? What if my job is in jeopardy?
Ignoring the impact of change on employees is where most organizational transformation efforts fail.
We recently worked with a retail company that wanted to implement a new ERP system without conducting a change impact assessment or providing adequate training. This resulted in low adoption rates, frustration, and missed deadlines.
Our team recommended that the company develop a targeted communication plan and build a customized ERP training plan that accounted for the unique change impacts to each role.
3. Your C-Suite Doesn’t Buy In
You must encourage your C-suite get behind your transformation effort. Their enthusiasm will spread throughout the rest of the company, making your change management efforts easier.
One way to reduce executive apathy is clearly demonstrating the project’s benefits, including the consequences of maintaining the status quo.
4. You Aren’t Communicating Effectively
Communicating intentions and expectations can create open dialogue that helps everyone understand what is expected and how to meet objectives.
Two-way communication is especially important. Employees should feel confident that their voices are heard, so encourage them to air their concerns and ask questions.
The same is true when communicating with executives and other key stakeholders. You should keep them in the loop regarding your efforts by providing them with financial and operational updates. At the same time, be sure to offer solutions and solicit their feedback.
5. You Don’t Align Your Culture With the New Direction
Perhaps the organizational transformation seeks to take your company in an entirely different direction, and the change doesn’t fit your company’s culture.
Readjusting the values and practices that guide your team members ensures organizational changes are more easily adopted. If you attempt to implement too many changes at once, employees may become overwhelmed, which leads to poor implementation, resistance to further change, and burnout.
For example, one of our manufacturing clients decided to overhaul its entire production process, inventory system, and quality control procedures – at the same time. This resulted in widespread disruption, missed deadlines, and a decline in product quality.
Fortunately, our software failure expert team (within our ERP software failure expert witnesses practice) helped the company make a complete turnaround by developing a culture that embraced change and innovation.
6. Your Plan Doesn’t Include Proper Training
Change projects sometimes fail because they do not focus on end-user training.
Forcing a new ERP system or new supply chain system on employees without providing adequate training can create resentment.
You must familiarize end-users with new technology By easing them into the new normal rather than tossing them into the deep end to sink or swim.
Your Change Project Doesn’t Have to Fail
One of the primary reasons why change projects fail is that organizations don’t know how to develop an effective change management plan. This undertaking can overwhelm even the best managers.
If you want to ensure digital transformation success, our change management consultants can help. Contact us below for a free consultation.
