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Organisational Change Management in ERP Projects

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Organisational Change Management (OCM) is a critical component of many successful ERP projects. Despite this, the term Change Management is one which is not well understood by many ERP practitioners or by most ERP users. There is often a general sense that it covers the softer, people-related issues that arise during ERP implementation projects and that as a result, OCM itself is an ill-defined and woolly concept.

This paper sets out to dispel this view by defining OCM in ERP projects very clearly in terms of strategy, constituent work streams and implementation tasks. View an extract of the report and download the full report for free at: http://www.lumeniaconsulting.com/resources/reports-white-papers/organisational-change-management-erp-projects

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Organisational Change Management in ERP Projects

  1. 1. ORGANISATIONAL CHANGE MANAGEMENT IN ERP PROJECTS September 2013
  2. 2. Organisational Change Management in ERP Projects September 2013 Table of Contents 1. Introduction .......................................................................................................... 3 2. What is OCM in ERP? ............................................................................................. 3 3. OCM Strategy ........................................................................................................ 3 4. OCM Implementation .............................................................................................. 4.1 Managing Benefits Realisation ............................................................................... 4.2 Managing Stakeholder Expectations .................................................................. 4.3 Managing Workforce Transition......................................................................... 4.4 Managing Project Communication ..................................................................... 4.5 Managing Training Effectiveness ........................................................................ 5. Conclusion ............................................................................................................... 6. About Lumenia ...................................................................................................... 4 www.lumeniaconsulting.com Page 2 of 4
  3. 3. Organisational Change Management in ERP Projects September 2013 1. Introduction Organisational Change Management (OCM) is a critical component of many successful ERP projects. Despite this, the term Change Management is one which is not well understood by many ERP practitioners or by most ERP users. There is often a general sense that it covers the softer, people-related issues that arise during ERP implementation projects and that as a result, OCM itself is an ill-defined and woolly concept. This paper sets out to dispel this view by defining OCM in ERP projects very clearly in terms of strategy, constituent work streams and implementation tasks. 2. What is OCM in ERP? There are five components to the management of organisational change in ERP projects. 1. Managing benefits realisation: this is concerned with the identification of project benefits and putting in place the structures and processes to help ensure that those benefits are realised. 2. Managing stakeholder expectations: this is concerned with the identification of key project stakeholders or stakeholder groups and focusing on the resolution of issues that may reduce their level of support for the project. 3. Managing workforce transition: this is concerned with identifying the areas of the project that will have an impact on workforce roles and responsibilities and guiding the organisation through the change process. 4. Managing project communication: this is concerned with ensuring that there is a structured process for imparting key project information to stakeholders or stakeholder groups. 5. Managing training effectiveness: this is concerned with the identification of learning needs, development of curricula and training materials and the effective delivery of training. While all five OCM components exist in almost every ERP project, the level of effort required to manage each component will be project-specific. Determining the appropriate level of effort for each component in a project is the focus of the OCM Strategy. 3. OCM Strategy The OCM Strategy for a project is based largely on the project complexity from an organisational change management point of view. In Lumenia, we use a series of www.lumeniaconsulting.com Page 3 of 4
  4. 4. Organisational Change Management in ERP Projects September 2013 grids called OCM Complexity Matrices© as a framework to help us to determine project complexity. For example, the matrix below measures complexity by mapping the level of process change against the scope of the ERP deployment. To view this full report please visit our website and register for free at: http://www.lumeniaconsulting.com/resources/reports-whitepapers/organisational-change-management-erp-projects 6. About Lumenia Lumenia is a leading independent ERP consulting organisation and is not aligned with any ERP or other vendor of business software. We provide objective advice and experienced project resources to organisations that are planning to upgrade or change their ERP systems. Specifically, we provide services in the following areas:  ERP strategy development  ERP product and vendor selection  ERP project management  ERP change management  ERP data migration management  ERP systems validation. We have offices in Ireland and the UK and work globally with many of the world’s leading companies. For more information, please contact Lumenia at: Ireland Parkmore Business Park West, Galway T: + 353 (0) 91 746940 UK 71-75 Shelton Street, Covent Garden, London, WC2H 9BP T: + 44 (0) 207 4708766 W: www.lumeniaconsulting.com E: info@lumeniaconsulting.com Copyright BSM Ireland 2013. Lumenia Consulting is a registered Business Name of BSM Ireland Ltd. www.lumeniaconsulting.com Page 4 of 4

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