What is change management?
It is the practice of applying a structured process for the organization to transition from the present state to the future state to acquire the expected benefits. In simple terms, change management is the approach that leaders and managers perform to prepare and assist employees in doing things differently. For instance, in the ERP implementation process, you can ease them into changes like organizational restructuring.
The latest ERP system provides an opportunity to transform your business by enhancing efficiency, enabling new capabilities, and improving business performance. This modern ERP software can help you optimize your organization. Although, ERP implementation is one of the most complicated and high-risk projects you might have to execute.
Poor execution of change management is one of the possible mistakes you can make. It is the most avoidable cause of project problems and failures. Human behavior often finds it uncomfortable to go through the change. Even the positive or slightest change can require time to adapt. The critical change management strategies help minimize this reaction. Effective critical change management strategies are crucial for ensuring a smooth transition to a new HRMS software system. You must understand that change management is not a secret phase in ERP implementation. Instead, it should be part of the project, included in the methodology, and infused in the team culture.
Here are the six change management strategies made to support and ensure a successful ERP implementation:
1. Create and share your vision
Businesses must determine what their post-ERP- implementation organization will look like and how they plan to run it. The next step is to share it with your company. Team-building activities can help foster a culture of adaptability and collaboration, key aspects of critical change management strategies. The fundamental expectation of every enterprise from a new ERP software is to transform and optimize their business. But what exactly does this transformation mean? However, creating your desired future vision and communicating it with your entire organization is the first step to successful change management.
2. State the case for change
Companies should ensure every person at every level of their organization knows and understands why there’s a need to modify the core business processes and implement a new ERP system. Therefore, it’s essential to communicate the case for change to your entire organization. Moreover, you can encourage clients and the implementation teams to articulate the project scope, roll out the strategy, and schedule the ERP implementation at the beginning of the project.
3. Mobilize and align leaders
Enable a guiding group of leaders who can share a similar vision for the transformation of your business and welcome the changes to come in the future. Firstly, this top management should thoroughly understand and then state the project benefits and place it as a top priority business transformation initiative.
4. Engage with your employees and stakeholders
Businesses must analyze the impact of every change. And they should often communicate with every employee, team, and function that can be affected. Therefore, a crucial strategy for organizational change management is needed to create and implement a detailed employee communication plan. Business technology tools can streamline communication and training during critical change initiatives. This plan should cover: What will be communicated, why, to whom, by whom, how, and when. These communications should include the project scope, objectives, milestones, and deliverables. You can also discuss the current vital success factors and approaches and the transition to the new system.
Moreover, it is essential to identify the critical stakeholders and influencers within the business and check their understanding and support level for the ERP implementation. You can create a plan to maintain and enhance their knowledge and support throughout the project. Assess the readiness of your organization and employees for the change on an ongoing basis. Companies should monitor the employee mood, enthusiasm, morale, and support level by running the mid-implementation check-ins.
5. Build the 6future organization
Create and design your desired business and future state. Examine the present condition of your business, locations, and department in terms of operations, organization, and people systems. And the most crucial thing is to make a transformation strategy. This strategy should include detailed actions and responsibilities to get your company to a new endpoint. Determine the new process with the help of best practices, and adjust them to your specific needs as per the requirement. For example, consider the job redesign and competency requirements for the new environment. You can also analyze the various HR implications like performance management, compensation and classification, recruiting, hiring, and onboarding.
6. Prepare and equip your workforce
Assist your employees in adjusting and succeeding with the transformed organization. This ERP implementation phase is more than just training your people on the new technology. It also requires powerful job redefinitions, skill acquisition, and organizational design modifications. Decide on new competencies that will be required. You can help your workforce enhance their skills, abilities, experience, and capabilities. Record any staffing impacts that you experience with the new ERP system. Then you should create, plan, and execute decided training strategies to fill the learning gaps. Organizations must help everyone, including users, leaders, implementation team, process owners, customers, and suppliers. Moreover, ensure they clearly understand how the ERP implementation will impact their activities and work.
To ensure effective change management, you need to communicate thoroughly and frequently about the project to your employees. And you can also state the case for change clearly and consistently. Moreover, it is essential to reinforce and restate these messages to ensure that every level of your organization focuses on the benefits that will come in the future and ignores or adjusts to the disruptions and uncomfortable changes that come with the ERP implementation.
Author’s Bio:
Deepali Daiya is a communication expert who excels in understanding customer needs. Currently, she is associated with Sage Software Solutions, a leading distributor of high-quality ERP Software and CRM systems to small and mid-sized businesses in India.