Page 54 - MetalForming September 2015

Apply Change Management to Leap Over ERP-Implementation Hurdles
Seven Steps of Change Management
Create Urgency
Develop a Vision
Share the Vision
Create Ownership
Remove Obstacles
Celebrate Wins
Build Culture Change
every time 100 hours were saved, the company held a Friday picnic lunch, free to all employees.
This changed everything! We were no longer the “computer geeks.” Now we were the “process guys” who could help employees earn a 10-percent year-end bonus. The computers were almost secondary. Whether man- agement knew it or not, they fol- lowed the primary steps of change management.
Change Management and ERP Implementation
Dealing with the people side of change is what change manage- ment is all about. In fact, it helps
shift our thinking from “dealing with” the people side of change to leading the people side of change. It’s a process to overcome resistance, and at its best, turn that resistance into a force multiplier to embrace change and build a continuous- improvement culture.
See the Seven Steps of Change Man- agement shown above. Applying change management to an ERP-implementa- tion project is like what the water- heater company learned the hard way:
• Create urgency—Gather all employ- ees and share the need for change. Why are sales or profits dropping? Compet- itive threat? Aging products? Customers demanding better reporting? It’s impor- tant to express safety—everyone’s jobs are safe—along with urgency.
• Develop a vision—What does the company look like after the ERP is fully implemented? What is the vision of a better day? How are things done better, faster, cheaper, while increasing cus- tomer satisfaction? Build detailed 1- year and 3-year visions.
• Share the vision—Gather all employees again and share the vision. Explain why an ERP is the right thing at the right time and why you chose the particular system. This is your chance to share the story. Share the vision for how the company looks with ERP after 1 year and 3 years. Make it personal and getattheWIIFMfactor—“What’sinit
for me?” Pick a few examples of how an individual’s role might change. Ask for ideas to help make ERP work—the ideas will surprise you.
• Create ownership—The most suc- cessful projects, big and small, have an owner: someone who champions the project with every group, reminding everyone about the vision. The ERP go-to guy must be an employee, not a consultant or ERP-system developer. The best ERP project manager is some- one who has held positions around the company, knows how things work and how to get things done, and knows what needs fixing.
• Remove obstacles—Ask employ- ees the simple question: “What’s going togetinourwayandstopusinour tracks?” Not everyone will be con- vinced that ERP is the best initiative to achieve the vision. However, the chance of success increases dispro- portionately by asking naysayers to help identify the obstacles. Focusing their attention on identifying things that can go wrong engages the naysay- ers to work on the project. Often, the best implementation plan is the one that attacks every obstacle head-on, leaving nothing to chance.
• Celebrate wins—Success breeds success. Create a series of readily achievableshort-termtargets.Whether
it’s launching one department on ERP or loading all customer information into it, these aren’t easy goals, but are achievable. Like the water-heater manufac- turer that offered the employ- ees Friday picnics for every 100 hours saved, when your short- term targets are hit, celebrate the win by making sure that all employees know about it, whether they have anything to do with what drives the win or not.
• Build culture change— Quick wins represent only the beginning of what must occur to achieve long-term change. Real change runs deep. Launching one new module or department using the new ERP system is
great. But launching 10 means that the process works. To reach that 10th suc- cess, keep looking for improvements.
After every ERP win, analyze what went right and what needs improving, and set goals to continue building on the momentum achieved. Keep asking for ideas around each new target—that will keep fresh ideas flowing, and helps everyone to focus on the big picture, not just on the activities in their specific areas.
Change is Good
Implementing a new ERP system provides the opportunity for company- wide change, or even bigger, enter- prise-wide change that reaches beyond the company to customers and the supply chain. An ERP system is one very tangible means to embrace change. The more your organization grows comfortable with change, the more it will participate in today’s increasing speed of change, holding the potential for your company to adapt a culture of innovation.
In a culture of innovation, change doesn’t build fear, but, rather, builds anticipation. Change is what drives your employees. They become a team motivated by being part of an organ- ization that’s always trying new things. MF
52 MetalForming/September 2015
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