Evaluation of change management during ERP implementation at Easy Mobile GROUP 5Henry, John, Sonwabo, Ted and Ian
DEFINITION Change management is an organized, systematic application of organized, knowledge, tools, and resources of change that provide organizations with a key process to achieve their business strategy OBJECTIVESThe case study seeks to evaluate the process and impact of changemanagement intervention at Easy Mobile wireless implementation of an ERPsystem. It is going to look at : how the process of change management was implemented against theoretical and industry practices. It will identify the key challenges, opportunities and actions undertaken as part of the intervention and make recommendations for future improvements.
WHY CHANGE MANAGEMENT ?The potential risks of ERP failure are caused by; Fear of the psychological aspects of change by management and staff. Employees fear of acceptance due to their limited ability to perform at a level required by the system, Potential need for staff re-skilling and this lends it’s self to lower productivity levels due to learning curve re-phenomenon ERP systems impose their own logic on organisations and they may be a source of cultural change They tend to alter internal power structures which results in resistance to change ERP systems usually result in managers loss of their autonomy, independence, control of data and processhence they hence they are usually resisted by those losing power and accepted by those gaining power.Change management initiatives help to; Minimise the adverse effects of resistance to change, these could include High implementation costs, Poor service delivery resulting in loss of competitive advantage, Loss of staff. Deliberately manage people’s expectations about change. Minimise the cost of change and damage caused by transformation. Create an environment for employees to respond consistently and positively to the change. change. Provide awareness Ensure understanding Facilitate acceptance Care, listen, and respond Manage people’s expectations Ensure readiness Champion the project
CHANGE MANAGEMENT ROAD MAP Knowledge Strategy implementation phase Status evaluation formulation phase phaseThis phase involves; This phase involves; This phase involves;• identifying skills gaps. • addressing issues raised in the previous phase. • ongoing monitoring• gathering information • It deals with the most fundamental human and evaluation of about employees need “what’s in it for me” the ERP personal tyrannies • communication about ; implementation regarding the system. how the system will work, strategy cost saving opportunities that will be realised • and providing timely the timeliness of information. and accurate Integrity of information that will be produced. feedback for • System endorsement by opinion leaders. management to take corrective action.Based on Aladwani model(1998 )
Organizational Change Phases and Communication Comfort Unaware Insight Denial AnxietyWhat will I do differently tomorrow? tomorrow?
Easy Mobile ERP Change Management Strategy Data conversion to Easy Mobile Oracle ERP Prototype Easy Mobile Oracle Easy Mobile Oracle Easy Mobile Oracle ERP System ERP Prototype ERP Prototype (CRP across Supply Chain Training Material Transition Support System 3) sign off Module, Finance, Project Accounting Strategy & Asset TrackingCommunications Support: Support:•Creating a shared understanding of the Build phase deliverables and milestones. milestones.•Creating a Build Phase Awareness amongst all stakeholders•To maintain a positive perception about the e-volution project e- Impact Analysis: People, Processes, Strategy, Structure, Technology, Policies We need to understand what is going to be different and determine the impact on people so that we know what to do to support people to understand and adopt the system
REPORTED RESULTS OF EASY MOBILE CHANGE MANAGEMENTSatisfactory outcomes Active and visible sponsorship Use of organizational change management processes & tools Effective communications Employee involvement Effective project leadership and planningUnsatisfactory outcomes The change agent forced to change personnel during implementation. implementation. The long engagement duration => Executive fatigue and disengaged. disengaged. Change initiative scope limited to implementation Off- Off-site resort engagements created an ERP elite club perceptions. perceptions. Unqualified process champions identified late. late. The leaders who lost control of processes resisted the change. change.
RECOMMENDATIONS / OPPORTUNITIES FOR FUTURE IMPROVEMENT Ask for employee’s ideas/suggestions for implementing the change Extend due to diligence to the change management not just the technologyprovider.provider. Communicate the expected engagement duration upfront to avoid fatigue Engage the change management agent beyond the project implementation. implementation. Do a skills audit prior to project implementation. implementation. Prepare leaders lead change but to also accept change and loose power. power. Create internal capacity to sustain the communication hype created by theproject. CONCLUSIONOn the overall the change management process was successful and the rightmethodologies were used.