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Risk Management and Change Management in the ERP System Implementation Project

SESSION II The Only Certainty is Change October 19 th 2006. Risk Management and Change Management in the ERP System Implementation Project. Viktor Sterle Head of IT Department Ministry of Defence of the Republic of Slovenia. SESSION II The Only Certainty is Change. Introduction.

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Risk Management and Change Management in the ERP System Implementation Project

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  1. SESSION II The Only Certainty is Change October 19th 2006 Risk Management and Change Management in the ERP System Implementation Project Viktor Sterle Head of IT Department Ministry of Defence of the Republic of Slovenia

  2. SESSION II The Only Certainty is Change Introduction SAP Implementation Project Risk and Resistance to Change Mitigation of Resistance to Change Conclusion

  3. Introduction Improve efficiency and effectiveness of the processes using modern information technology (SAP DFPS): • Improve the integration of activities. • Improve planning and reporting. • Decrease processes’ cycle time. • Improve data quality.

  4. SESSION II The Only Certainty is Change Introduction SAP Implementation Project Risk and Resistance to Change Mitigation of Resistance to Change Conclusion

  5. SAP Implementation Project

  6. Some of Typical SAP Implementation Risks • SAP project begins as an IT-project • SAP project is driven by the IT-department • SAP project is not considered as an innovation • SAP implementation is considered as ‘just another IT project’ • Relying only and entirely on external consultants • Resistance of managers and employees to reorganize

  7. SESSION II The Only Certainty is Change Introduction SAP Implementation Project Risk and Resistance to Change Mitigation of Resistance to Change Conclusion

  8. Resistance to Change - Iceberg Theory Look below the surface!

  9. Risk Analysis NEGLIGIBLE MINOR MODERATE SERIOUS CRITICAL 91-100% 61- 90% Lack of management support 41- 60% LIKELIHOOD 11- 40% 0-10% CONSEQUENCES LOW MODERATE HIGH

  10. Emotional Reactions through SAP Project Phases

  11. SESSION II The Only Certainty is Change Introduction SAP Implementation Project Risk and Resistance to Change Mitigation of Resistance to Change Conclusion

  12. Areas for Change Management

  13. Change Management Analysis

  14. How to Mitigate the Risks of Resistance to Change?

  15. Risk and Change Management in Project Structure Steering Committee Project Management Change Management Risk Management Working Group 1 Change Agent Working Group 2 Change Agent Working Group n Change Agent

  16. SESSION II The Only Certainty is Change Introduction SAP Implementation Project Risk and Resistance to Change Mitigation of Resistance to Change Conclusion

  17. Integration of Risk and Change Management Project Management Total Quality Management Concurrent Enginering Risk Management Change Management Source: Kerzner Harold, Advanced Project Management

  18. Sources • Internal documentation of Ministry of Defence Republic of Slovenia • Documentation of ESG GmbH • Kerzner Harold, Advanced Project Management

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