Change management is very tough to implement in a company, as it has to carry out everyday tasks and also bring in the needed changes in the methodologies and work procedures, which are no more useful and are not benefitting the company. Organizations that go for change management have no other option but to go for the needed change to stay in competition. The new changes will not only reduce efforts but also minimize costs, and it will bring in new flexibilities to enable the company to meet the future needs. Change management is aimed to increase productivity and to get a better ROI.
ERP change management may require the employee to get back to earning and analyze the conditions which are causing degradation in productivity. Implementation of ERP and change management is done side-by-side by many organizations as it enables the company to eliminate all the data and the processes which are not needed. The company starts every process afresh but there are many aspects of change management and it should be done when the company is fully prepared for it.
Some of the aspects required for ERP change management are
1. Have a clear understanding and readiness from the lead management team for the new change.
2. Crucial analysis should be done to measure the impact of the new system. The company should have funds, time and human resources that can be completely devoted to it.
3. It may require identifying the stakeholders and getting support from the executives to finish the project.
4. Design the new strategies and implement it. The company may be involved in unproductive work during the process and counseling should be provided to the end users to prevent confusions. The employees may be shifted from one department to other, or some employees may have to lose jobs during such changes and therefore, counseling helps.
5. The three main components for change management are impact analysis, communication and skill analysis. A team is formed for the process and in impact analysis the company estimates the total benefit of the new business process, through communication the new changes are implemented and in skill analysis the company can estimate the need for the new the skills required.
The various stages involved in the process are
Understanding the need for change: First the company should analyze the urgency for going for a new system.
Preparing a team that will be involved in the process: A new team will be appointed to complete the process.
Establishing a vision and strategy: Designing and planning the vision is important. New strategy will be designed to improve previous methodologies.
Communication: Communication with employee and end users is needed to strengthen the implementation plan.
Design the short term implementation plan: Initially an implementation plan is designed as per the requirements of the company. Later to prevent delays in everyday work caused by the new change a short term plan is designed.
The success of ERP implementation depends on the way the various stages are handled by the organization.