Post ERP Implementation Organizational Change Management
Organisational Change Management (OCM) refers to the method of helping employees prepare for the adoption of the latest technology. ERP software projects are prone to be unsuccessful without a successful change management plan.
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What is it that you need to know about bring about change?
If you are implementing changes inside an enterprise, this means you’re changing the manner you conduct business in a certain way regardless of whether it is an entirely new business strategy or employee policies, or the introduction of new equipment or software.
Effectively implementing change requires change management that is a procedure that assists employees to prepare for the transition of their workplace by using a variety of strategies and resources. It is recommended to develop plans that get the support of employees and provide them with the tools they need to implement the desired change.
What are the advantages of implementing changes?
The majority of changes are implemented to increase effectiveness in meeting goals of the business or to adapt processes to new goals.
The kind of change you will implement depends on your company’s goals and objectives as well as the industry in which you operate. But, the main advantages of making changes within an organization are:
- Enhancing collaboration and cooperation within the organization
- Improved productivity of employees
- Enhancing the effectiveness of working processes
- Ability to adapt to changes faster
- The ability to accomplish certain business goals
If an ERP is put in place the employees will be expected to be able to learn and adapt to the new user interfaces as well as features. A change management plan assists in reduce the learning curve by offering training and development programs that enable employees be ready to begin integrating the new workflows as quickly as they can.
Change Management Strategies to manage Change in an ERP Project
The process of implementing or upgrading an ERP system can be an excellent way for a company to bring about lasting changes within the company. This is why the strategies for managing change in any ERP project are vital.
More Than Just Software Selection
As business improvement specialists we’ve observed we’ve learned that ERP change management goes beyond than simply installing the ERP system.
Manufacturers seek Ultra because we see ERP Change Management as transformative improvements to business processes. It involves introducing the best methods across all departments to boost efficiency, enhance overall business performance, and enhance the value of ERP systems.
As with any project that is complex resistance to changes is common and not the exception. Prepare for it, and plan in order to minimize the impact it may be a source of. Avoiding it and hoping that it will disappear is not a viable option.
As part of our ERP improvement services, we guide our clients through using change management techniques which can be employed to decrease the resistance. Individual and organizational values influence how changes are accepted by the organization, and must be addressed to succeed.
5 Strategies to Manage Change for ERP Projects
We are an uninvolved ERP consultancy firm we understand that change management is a subject that is frequently brought up when project teams seek Ultra to determine the most effective method to manage an ERP project to enhance the efficiency of key processes. We frequently assist our clients through the key strategies for managing change to implement the ERP project.
1.Mobilize and Align Leaders and Articulate the Case for Change
In the beginning It is crucial to articulate clearly the need for the change. We recommend teams communicate the scope of the project, rollout plan and the implementation plan when the ERP project is getting underway. Important aspects of this plan are:
The leadership team is aware of the implementation plan and clearly defines the how to lead actions that support the project’s scope of the change the rollout strategy, timeline for implementation
The implementation team should be empowered and employees to take broad decision making by giving them the power to make decisions
2.Identify and manage "People" Opportunities and Risks
It is equally important for the ERP team to take a look at the potential and the risks of the project. That’s why an effective change management plan and team is set up to tackle the cultural shifts that the project will bring about. The most important areas to be addressed include:
Conduct people and organization readiness assessments to determine opportunities and risks as soon as is possible, and identify actions needed to capitalize on these opportunities and reduce risks
Review the “people” risks mitigation progress by performing mid-course and post-implementation inspections
Determine the key stakeholders in the business as well as across the enterprise. Implement the best practices to ensure their adoption
A crucial approach to managing organizational change is to establish and implement the most precise communication plan that clarifies what is to be shared, why who (audience) and by whom as well as when and how. The communications must include:
- The definition of the scope of the project and objectives, milestones, deliverables, key success factors and methods.
- Information shared between and between the project’s stakeholders.
- Plan the transition process from the implementation process to after go-live.
4.Create the Organization of the Future
As business improvement specialists are, we have heard about the desire to have an improved organization once the ERP implementation is completed.
The process of designing and developing the future business structure is also essential to ERP and change management. This involves assessing the needs for job design and competencies in the new setting.
- Assess the current state of the company, its locations and departments with respect to the organization, processes, and personnel processes
- Make a transformation strategy which defines the tasks, responsibilities and the timeframes to reach the desired situation
- Consider the implications for HR like the management of performance, compensation and classification, recruitment, hiring and on-boarding, etc.
5.Enable the workforce
One of the most important aspects of changes management strategies in an ERP project is enabling the workforce to excel within the new organization. This process is not just educating employees on the latest technology. This typically includes overall job, skill and organizational design changes.
We recommend focusing on the following projects:
- Examine your current workforce’s capabilities, skills, experience and abilities; evaluate the effects of staffing
- Create/implement training strategies and strategies to bridge the learning gap
- Before going live, assist the end-users, managers, team members as well as process owners, customers suppliers know how their work processes will be affected
This article provides high-level methods for managing change in the ERP project, however the process of managing change must be considered a priority throughout any project. People who are affected by change need to be educated of the change, empowered, and able to let changes be implemented effectively. Engaged and involved people will be more willing to agree to a change only in the event that they believe that the business will gain.
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