Change management considerations

What Every CFO Should Know About Implementing a New ERP What Every CFO Should Know About Implementing a New ERP
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Transcript

Hi, everyone, welcome back. In this lesson, we're going to spend a moment talking about the people aspect of the IR p implementation project. Without the buying of the employees, the European limitation will be a failure, guaranteed. I'm Jennifer Nicholson. Why is it consistent investment in change management will be one of your most important contributions to your project success. Your P is so large and touches so many people, that you must have a well thought out methodical approach to educating all your stakeholders about the change that's about to occur and the steps and timelines in the process.

People naturally jump to Am I going to lose my job? This is a legitimate concern, as one of the reasons we increase automation is to reduce human interaction with transactions, try to be sympathetic about their concerns and help them understand the business reasons for the change. But what exactly is change management? How do we ensure people are ready for a project and system that is potentially Going to consume a significant amount of their work life over the next six months at a minimum, and then once implemented, will change the way they work. That's when we realize we really don't have a clue about what change management is. The good news is, and what's critical thing to remember is that the way people come to believe things and form opinions is both consistent and predictable.

By managing to those predictabilities in terms of timing and content, the normal discomfort associated with change on the scale of an ESOP project can be reduced to manageable levels. The key steps on your journey to change are number one, identify everyone who will be affected by the change and recognize this is probably a bigger group than you will initially think. Number two, communicate to this group what change will be coming. Number three, establish the compelling business reasons that make this air pee change necessary. Number four, it Explain how they must behave in order for the project to succeed. And number five, give frequent projects updates, always reiterating steps two through four.

If you ever feel like you were over communicating that your audience could give your presentation because they're aboard and you've talked to them so much, you probably doing the right amount. There's no question that on one level LRP is a technical project requiring intelligent design, seamless logic and sophisticated math. But no matter how robust the solution, your pee will only be successful if people embrace it, and use it as it's designed. That behavior will not occur without change management. How do you get the right team to cite assembling the right team as a key or RP success factor seems as obvious as saying the key to growing your business is to increase your revenue. Yet every MP Product Manager will have to fight and usually compromise for access to the right talent the talent and organization assigned to its ear p team demonstrates to a large degree his commitment to and comprehension of long term health of its organization.

Five years after the implementation of a mediocre MRP system is of no value to regret assigning a mediocre team to the project. Talented implementation team sees the big picture more completely appreciates the implications of strategic plan better evaluates decisions, not only in terms of what is today or what is likely to become tomorrow, and has professional capital and organizational respect to sell difficult, but necessary project changes. So what are some of the indicators of good talent when evaluating individuals for implementation team participation? First, if possible, individuals should be seen as promotable. People who are promotable have less allegiance to the status quo. And we'll later populate the organization's higher ranks with fundamental understanding of how the business processes were designed.

Secondly, an individual who has high personal intelligence is nice, but an individual with high team intelligence is a necessity. Being personally smart has nothing to do with and can occasionally interfere with being teams vert. Being team smart means you recognize the point of consensus and do not belabor a conversation beyond that point. It means that you do not steer conversations in interesting but unimportant directions. It means that the quality of a decision is evaluated solely on its effect on the organization means that whatever personal ego you have is left at home, where you can conveniently pick it up after work. Third attribute is depth of understanding.

Talented people not only understand what is required, but they understand why it is required and this comprehension is incredibly fast. When it comes to determining what business practices are subject to change, and which are not. And finally, the most intangible is the ability to listen to multiple points of view, and assimilate the best parts of all into a solution that is better than any. If you assemble a strong team, everything about the project goes better. Change Management is more effective because the team members have credibility. Testing goes better because the test scenarios are choosing wisely and executed intelligently.

Fewer milestones are missed. A team members are you used to accepting additional responsibility and pitch in to help whenever needed. There are many factors that influence the success of an MRP implementation. Team talent is one of the biggest, a highly talented team alone does not ensure that your implementation will be world class, but mediocre talent alone will ensure that you have a mediocre implementation. In our next lesson, we're going to start talking about all the work that needs to be done. Thanks for joining me.

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