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01.02.2015
Use the coupon code “Good Sign“ for a 15% discount on all Good Signs, shirts, tank tops, stickers, and hats! In its most fundamental form change management is what we do to control and manage the impact of a change.  For example, Project Change Management provides us with a mechanism for controlling and managing changes that left unchecked could prevent a project from accomplishing its objectives. Identifying organizational impacts and changes can be difficult even when they are the primary objective of a project and expert resources are deployed to carry them out.  In fact, a large number of transformation projects are challenged or fail outright. Why are organizational impacts and their attendant risks so often overlooked in projects?  Project management texts frequently identify and describe organizational risks, numerous published case studies on project failures cite organizational change issues as major contributors to project failure, and most experienced project managers have sat through at least one risk brainstorming sessions where someone on the team has brought up an issue or risk relating to organizational change.  In fact, most project managers and teams recognize the potential for risks associated with organizational change, but tend to dismiss them as unmanageable, indefinable or inconsequential.
So the first challenge is simply recognizing that organizational change will be needed for the project to accomplish its objectives.
Recognizing the need for organizational change management as a component of an effort and establishing strategies and plans for meeting that need are critical first steps but much more is needed to ensure at organizational impacts are understood and effectively managed in a project. Any effort to plan for organizational change must consider: 1) A single project may introduce a number of different organizational impacts, 2) changes may impact different individuals and groups in a variety of  ways and 3) organizations are made up of people will not all perceive or react to the change(s)  in the same way.
Panorama was key to making Samsonite’s ERP software selection and organizational change management initiatives successful. Organizations realize the most benefits from their ERP implementations when their implementation team possesses a combination of these three areas of expertise. To achieve operational efficiency and a high return on investment from new technology, private and public sector organizations turn to the Panorama team and rely on our proprietary PERFECT Change™ Organizational Change Management Methodology. An aerospace and defense organization determined that in order to achieve the most ERP ROI, it must address internal organizational issues prior to implementing the upgraded software.
A professional services organization identified operational savings opportunities of 29-percent of total labor costs.
A City Government realized quantifiable improvements in their change management process in less than two months after the start of the engagement. After investing in an ERP solution, your organization cannot afford to lose benefits to employee fears and low system-usage. Sign up for our newsletter to have the latest ERP thought leadership delivered to your inbox every Wednesday morning.
As we have outlined in our 2013 Organizational Change Management and Business Process Management Report, organizational change management is one of the key contributors to ERP implementation success and failure.
To make matters worse, most ERP consultants either don’t understand organizational change management or don’t have the appropriate toolsets to help them through their implementations. Learn more by watching our on-demand webinar, An Effective Organizational Change Management Approach.
After 15 years of ERP consulting at large firms including PricewaterhouseCoopers and SchlumbergerSema, Eric realized the need for an independent consulting firm that really understands ERP. Organizations that adopt a 'business as usual' approach to organizational change are either postponing the inevitable confusion and frustration that come when the changes are felt at an individual or group level or are ensuring that the announced changes have little chance of ever being implemented. Learning interventions accelerate the process of change by effectively identifying potential resistance and managing the emotions involved. Why is it so difficult to engage an executive team to initiate that long overdue change process, or to commit the team to an organizational transformation that positions your company for 21st century growth and scalability?
The answer is quite simple and yet very powerful -- executives have the greatest motivation to protect the status quo -- after all, they built it.
John Kotter, a noted author on organizational change and leader behavior in a change process, believes an executivea€™s history of success creates a barrier to that same executive pursuing change - seeking new ways of doing things. Meaningful change generally occurs at a pace where executive managers can effectively lead the change, and the organization can effectively embrace the changes happening. Since a€?working with peoplea€? is considered an HR practitioner strength, they are often called on to assist the CEO and other executives to initiate organizational changes.
Below is a change management process we customize based on client situations as appropriate to address specific issues and concerns.


Implementing performance management changes to measure meaningful behavior change effectively.
Slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. Whether the assignment is full time or in addition to their ‘real jobs’,  these people and the people who are not assigned to the project are being asked to change the way they operate and interact.
For a one-stop solution to ERP consulting, your organization needs a team with expertise in all three components of ERP success, including organizational change management. As employees become more comfortable with new software, new processes and new roles and responsibilities, organizations come closer to achieving a high ROI. In fact, of the top ten reasons for ERP project failure, a majority are either directly or indirectly related to organizational change management.
Any ERP implementation involves a great deal of change, and most employees struggle with those changes. Many organizations and ERP consultants simply ignore organizational change management altogether.
Our consulting teams are commonly talking executives and project sponsors off this ledge, even though it can be difficult to persuade most executives that this approach isn’t nearly as easy as it sounds. Speaking of executives, this one drives executives crazy more than other change philosophy. While this more incremental approach to change can be effective in long-term projects with several phases of deployment, the reality is that most organizations try to implement in as little time as possible, which makes this one unrealistic in many cases. He began his career as an ERP organizational change management consultant and eventually broadened his background to include implementation project management and software selection.
Learning should be viewed as the wheels and tires of any organizational change effort - no change effort can be successful without learning.' - Daniel R. The greater the level of intervention, the more fear and resistance will be generated in individuals, groups and within the organization itself.
This reduces the level of employee resistance, gains acceptance and commitment sooner and minimizes the overall impact on productivity. Leaders intuitively realize that change is inevitable, and those who get ahead of the change curve often have the greatest success and rewards. Your leadership team learns a change management framework, including specific tools and techniques, to address critical organizational levers that initiate organizational change. With a process to follow and commitment of the executive team to participate, the HR leader can be an effective catalyst for change, an inspiration for executive team members to follow.
There are five phases in the process, each phase color coded differently to reflect differences in deliverables from each phase.
Farther away?  Might their new location be perceived as  more or less prestigious than their current space?  Is the new space that someone else has been given a reward?  Or perhaps a punishment? Even employees that are not users of the new system are greatly affected by changes to business processes, business nomenclature and other variations that may seem innocuous, but can send operations into a tailspin after go-live.
They have plenty of seemingly good excuses to overlook this need, such as, “Our people hate the current system, so we won’t have any trouble getting them to change.” This is usually true – that is, until the specifics and the magnitude of the changes become more apparent during implementation.
Most organizations and their ERP consultants understand that training is important, but they don’t understand that it is just one of many components of an effective organizational change management plan.
Employees may put up a front that they are embracing the change, but it’s the more subtle and covert forms of resistance that are more damaging – and undetectable to most executives. They don’t view this as having anything to do with their new ERP system, so they typically will resist it greatly.
This approach rarely works well as a core strategy, so it’s important to have some structure and deliberate planning behind organizational change management. The most effective organizational change strategies combine all of the above approaches (except point #1), rather than focusing on any one of them by itself.


Eric’s background includes extensive ERP software selection, ERP organizational change and ERP implementation project management experience. Tobin Change initiatives fail because organizations choose to focus on business strategies and processes rather than on the people that will be affecting the change. Learning for organizational change also helps clarify and communicate the new vision and strategy within the organization and support the implementation of strategic business initiatives. Steps to implement a change management process are discussed, with a focus on enabling participants to disrupt the a€?status quo,a€? to get executives initiating change rather than reacting to it. This is one reason why, according to our 2014 ERP Report, that just over half of ERP implementations experience some sort of operational disruption at the time of go-live. While employee resistance to change is usually extreme by this point, it’s typically too late to whip together an effective plan to mitigate the change since it wasn’t on anyone’s radars until this point. The dangerous part of this philosophy is that those guilty of this approach think they are doing what’s right, so they don’t know what they don’t know. Although there is some merit to this approach and plenty of change consultants that can help in this area, it is a very myopic view of change. Effective ERP implementations take less myopic views than the common approaches and provide more comprehensive and inclusive methods of change. Throughout his career, Eric has helped dozens of high-profile and global companies with their ERP selections and implementations, including Kodak, Samsonite, Coors, Duke Energy and Lucent Technologies.
Learning for organizational change with Clarion Learning involves creating sustainable changes in organizations by focusing on creating new mindsets and behaviors rather than implementing new structures and processes.
Learning for organizational change does not mean that people will not experience fear and that there will be no resistance to the change.
This ensures that the change and desired business results are sustainable in the long-term. We help the executive learn what must be done, then coach them through the entire process of assessment, planning, and implementation, and measurement and communication. By the time they realize that training isn’t enough to get the organizational alignment they need, they are just a few short weeks from go-live, which is far too late to make any lasting change to the organization. In addition, this “feel good” approach to change management may have some impact on an organization, but it is not necessarily focused on the cultural and organizational changes required for a successful ERP implementation.
In addition to his extensive ERP experience, Eric has also helped clients with business process reengineering, merger and acquisition integration, strategic planning and Six Sigma initiatives. Sometimes key executives leave the organization, necessitating a different approach to achieving results. Our process helps executives better understand their own strengths and opportunities, as well as executive team development.
As bright, committed, and forward-looking as they may be, even executives find disrupting the status quo a difficult hurdle to overcome. Change can cause you to solve problems that you couldn’t even attempt as another self. When we evolve from our previous mindset and revamp our outer circumstances we are moving toward the next best thing for us. All of these events cause executives to consider change, but considering a change program and actually doing one are two different things. Many executives have limited experience planning and executing change management, but are forced into doing it by any of the aforementioned scenarios.



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