How to Create an ERP / HCM Organizational Change Management Plan

Summary

In this insightful video, Eric Kimberling, CEO of Third Stage Consulting Group, emphasizes the critical importance of organizational change management for successful ERP implementation and digital transformation. He outlines five essential steps to initiate an effective change management strategy: conducting an organizational readiness assessment, performing a change impact assessment, ensuring team alignment, assembling a dedicated change team, and developing a tailored change strategy. Kimberling highlights that understanding employee resistance and aligning objectives are crucial to navigating the complexities of change, ultimately fostering a smoother transition and greater organizational success.

Takeaways

• 🚀 Organizational change management is crucial for the success of ERP implementations and digital transformations.
• 🔍 Conducting an organizational readiness assessment helps identify how resistant different groups will be to change.
• 📊 Utilize anonymous surveys and focus groups to uncover root causes of resistance within the organization.
• 📈 A change impact assessment is necessary to understand how roles and responsibilities will change within different departments.
• 🔄 Ensure alignment among executives and stakeholders regarding the nature and goals of the digital transformation.
• 👥 Develop a change team primarily composed of internal resources to drive the change management efforts.
• 🤝 Adopt a hybrid approach to change management, integrating it into the responsibilities of all project members.
• 🛠️ Create a unique change strategy tailored to the organization's specific needs and culture, rather than using a generic plan.
• 📢 Change management encompasses much more than training and communications; it involves a comprehensive strategy.
• 📚 Leverage insights from past digital transformations to inform best practices and enhance organizational change management efforts.

Q & A

What is the primary focus of organizational change management (OCM) in the context of ERP implementation?

The primary focus of OCM in ERP implementation is to manage how people adapt to change, ensuring that employees are prepared for the technological advancements and transformations in business processes.

Why is OCM considered the most important factor in the success of digital transformation projects?

OCM is considered the most important factor because it addresses the human aspects of change, which are often the most challenging barriers to overcome in digital transformations. Without effective change management, the likelihood of project failure increases significantly.

What are the two main assessments involved in the initial steps of OCM?

The two main assessments are the organizational readiness assessment, which gauges how resistant people will be to change, and the change impact assessment, which examines how specific roles and responsibilities within the organization will be affected.

How can an organizational readiness assessment be conducted?

An organizational readiness assessment can be conducted through anonymous online surveys to uncover root causes of resistance and through focus groups to gather qualitative insights regarding employee attitudes towards change.

What is the significance of understanding the current state in change management?

Understanding the current state is crucial as it serves as the foundation for developing strategies to transition to the future state. It helps identify areas that may face resistance and informs the overall change strategy.

What does the change impact assessment focus on?

The change impact assessment focuses on analyzing specific departments and teams to understand how their roles and responsibilities will change, including potential automation and shifts in job functions.

Why is alignment among stakeholders important in OCM?

Alignment among stakeholders is important because it ensures that everyone has a shared understanding of the project's objectives and expectations, which helps to minimize confusion and resistance during implementation.

What is recommended for assembling a change management team?

It is recommended to primarily use internal resources for the change management team, supplemented by external, technology-agnostic advisors to guide the change process while maintaining internal ownership of the initiative.

What should a tailored change management strategy include?

A tailored change management strategy should include specific tools, methodologies, and plans that address the unique culture, objectives, and challenges of the organization rather than relying on generic, one-size-fits-all approaches.

What is a common misconception about change management?

A common misconception is that change management only involves basic training and communication. In reality, effective change management encompasses a much broader range of activities and considerations that address the complex dynamics of organizational change.