Getting Started with Organizational Change Management
When Does an Organization Need Change Management?
There are many situations where an organization needs to incorporate change management. Many times it is due to an expansion, restructuring, merger & acquisition, regulatory compliance, Enterprise Resource Planning (ERP) technology roll out or others such as language, culture, etc. To determine the client needs, we need to know how they are managing change today, what are their current challenges and opportunities, what organizational challenges and changes are they expecting, and how are they integrating change management and training. We assess the business case and ensure alignment with executive vision and goals. We look at how they communicate and train their employees today and help them to strategize the best approach for their culture. Risks and business impacts are identified and communicated to the appropriate level of the organization. In other words, we help the organization become ready for the impact of change through the use of a standardized methodology and consulting expertise.
The Top Issues Facing Organizations Implementing ERP Systems
Many ERP implementations have discovered the hard way that people impact the success of an implementation. If the organization is not ready for the transformation, the project will miss time lines and come in over budget. Organizational change management uses a solid methodology for assessing all the key areas of the people side of an implementation and surfacing risks before they become expensive mistakes. (Source: ASUG Best Practices Survey 2006)
The Characteristics of Accepting Change Within an Organization
The organization follows a commitment curve on every ERP implementation. OCM will educate the end users and leadership to make them aware of the changes that are coming their way. There are best practices OCM follows for teaching and encouraging the organization how to understand and accept the changes. Only after all the individuals accept the changes can we say the organization has reached full adoption. OCM works at the individual levels through communication, involvement, training, support, reinforcement, etc. to build consensus through out the organization.
Organizational Change Management Levers
Organizational change management has the capacity to leverage positive change. All of the following levers are active in an organization at all times, influencing each lever provides momentum to shift the culture.
Leadership and Sponsorship
Develops a culture of change leadership that aims to build commitment through accountability, role clarity, and executive development.
Skills and Competencies
Incorporates competency assessment and skill development for all employees. This lever incorporates learning, training, and succession planning into all OCM initiatives.
Aligns business and process metrics with process roles and management structures.
Enable change through frequent and factual information flow, and clearly explained impacts, roles and responsibilities, benefits, and rewards.
Governance and Compliance
Clearly assigns roles and responsibilities, including decision-making responsibility and creates a culture of compliance based on measurement and consequences.
Performance Management System
Establishes and measures individual and group performance, ensuring alignment with enterprise strategies, goals, and objectives.
Incentives and Rewards
Provide clarity of desired performance and compensation, bonusesu00A0 and promotions that is consistent with good performance and client successes.
Hiring and Selection
Provides personnel strategies (such as retrain or hire; grow organically or acquire) that ensures individuals possess the right skills and competencies at the right time, resulting in program success.
Organizational Change Management Methodology
The organizational change management methodology has been designed based on best practices in the industry. All change management tasks have been aligned and organized with the SAP implementation methodology in order to conduct the right change management task at the perfect time during the implementation. An OCM consultant will identify along with the client, the best change management roadmap for their project. Once the change management strategy is decided on, the OCM consultant works with the project manager to link the change management project plan milestones to the overall implementation project plan. These milestones are identified in the change management methodology by phase and category.
The following image shows the organizational change management methodology as it aligns with the SAP implementation road map (Source: RWD Technologies).