Why Organisation Change Management is needed during Implementation of an ERP?
Organizational change management(OCM) & Implementing Enterprise Resource Planning(ERP) software is one of the wise moves for the development of the company. And definitely, it can bring a large number of improvements in the operational and organizational level before the implementation of ERP. As we already discussed in the previous Blogs, Implementation of ERP is not a simple task and can be difficult if correct workflows and procedures in the early stages of development are not done accurately.
Moreover, there will be an opposition created among the people who were comfortable with the present business process while reforming the internal process to meet the needs of ERP software. So via this blog post, we will explore, during the implementation of Enterprise resource planning software for your business, how you can carry on and change the organizational change management.
As a process manufacturer, you know it is a good move to your organization for implementing an ERP software solution, but maybe less conscious that implementation may not be an easy change. In other words, as a manufacturer, you will certainly have a second thought about the user's acceptance of ERP software during the introduction of any ERP software. Any new program or system implemented in a company will definitely need time for user adaptability. As an entrepreneur, you always have to retain positivity on improvising the process with Enterprise Resource Planning software as the company can minimize manual entries in just a few clicks and gain full insight into the company.
However, neglect of the change management which occurs after the implementation of ERP software has been done is one of the major mistakes that is made by the enterprise owners.
There are consumers who do not want to go through the changes to the organizational process and on the other hand, some others may quickly accept the changes, keeping up with the technology. Sometimes some may reject the entire ERP program by sticking to the legacy systems or few of the staff may refuse to embrace the changes.
How to manage organizational change management
Organizational Change Management (OCM) provides a framework by which an organization manages changes in processes, structure or culture in a company – migrating employees from the way things currently are to the “new” way of doing things. Specifically, OCM addresses the people involved in the changes that are occurring and how individuals fit in within the structure of those changes to ensure the successful implementation of ERP software.
The implementation of Enterprise Resource Planning can be considered as a success only by making sure that the employees have adapted the new changes.
Below are a few of the points which can be given focus when organizational change management.
Planning is one of the prominent parts of easy organizational change management. Planning can be achieved with the help of an ERP vendor and members of the internal team. You will need to detail each and every step of the processes throughout the planning phase. Some of the areas include timetables, tasks, duties, schedules for training, etc. Enhancing the best of industry practices will mean fewer unforeseen problems and efficient ERP project execution. Planning also helps you with realizing the return of investment of your investment in ERP.
So in general, accurate planning can, helps you with Boosting the best practices and reinforcing the processes in place to deal with unforeseen problems will ensure that the process goes forward despite any challenges that might arise along the way.
Communication acts as a crucial part of Organizational Change Management, which will remind the employees and stakeholders about the implementation decisions and ERP software. Showcasing the positive effect on business growth and improvements in job roles and opportunities the program can provide can encourage employees to accept the ERP software
Continuous sharing of information during implementation, enabling staff to ask questions and receive assistance prior to, during and after the process ensures active participation
Support and training
Upon implementing the ERP software, many companies often neglect training and support, knowing the deeper areas and roles of ERP software create more trust in what all ERP software can do. Gaining technological knowledge is also necessary, so that vendor reliance can be decreased.
Now let us look,
The need for organizational change management in an ERP implementation
All ERP implementation will benefit from Organizational Change Management. Along with including many resources and better ways of working and establishing good practices within an organization the long history of ERP had helped a lot. While determining the scope of ERP implementations it is necessary to take these concerns into account.
The first thing you need to do as a company start implementing an ERP is to ensure that the project focuses equally on OCM and technology transition. It involves creating and aligning an Organizational Change Management Plan with the overall project plan that describes all factors of the people's side of change that are required.
It means creating an Organizational Change Management strategy and aligning it with the overall project strategy that defines all aspects of the people's side of change that are required. Projects powered from a technological perspective may have clear successes and accomplishments, but little attention will be given to the People Side of Change, so managing this dimension along with technical implementation is important for the following reasons.
Employees should have a good understanding of the reason for the change.
To both, the solution and the change employees should be engaged.
Once when workers have made the personal decision to accept the change training will be used to develop knowledge.
Senior leaders must show their own contribution to the transition and the participation of the company.
Communications are compartmentalized and customized for different stakeholders who address the questions they care about.
A supportive coalition of senior leaders and managers builds traction around the enterprise.
Better chance of achieving project targets.
The company is beginning to develop a positive history of change, providing a stronger context for the next change initiative.
Important aspects of organizational change management
So, to ensure a successful implementation of the ERP what are the key components of Organizational Change Management required?
Let us look at the important foundations of organizational change management.
For efficient ERP implementations sponsorship is a key ingredient. There will not be a project without a sponsor! A Sponsor needs to be present to show their own contribution to the change and that of the organization.
Your biggest strength will be a well-managed stakeholder, clearing organizational obstacles and helping the project in times of need. To ensure your project's progress, you must handle all of your stakeholders appropriately.
It involves the planning and control of the overall distribution of ERP-related benefits. It is often the case when conducting an ERP implementation that organizations invest too much time and energy on the planning stages they forget what comes after implementation.
The impact of OCM on the ERP successes
OCM is about effectively handling major changes within the company. Without any attempt to keep an ERP implementation project on the route, the project has much less chance of success. Organizational change management is essential and should actually be an integral part of the overall implementation of ERP. Above all, the ERP program will enhance the procedures, activities, customer experiences, and more, of your company.
Here's a high-level summary of the five-step process for applying the OCM to your ERP project implementation:
Review the organization
Implement a strategy for managing the change
Stay the course
Test every milestone
While going live get key people involved
Need any guidance? Singo Africa Ltd is here to help you. Keep in touch with us to learn more about how we are working with the clients managing big projects and helping them reach their goals.