Types of Systems • Impact of systems implementation on organization change? • Transaction Processing Systems (TPS) • Management Information Systems (MIS) • Decision Support Systems (DSS) • Expert Systems (ES) • Enterprise Resources Planning Systems (ERP) • E-commerce or M-commerce systems • Customer Relationship management systems (CRM) • Supply chain management system
Large scale application systems Implementation • Cross functional boundaries • Force a number of changes simultaneously • the information flows are changed • roles are changed • new responsibilities for the roles
Change from new enterprise systems • When the organization is undergoing change from new enterprise systems: • The two perspectives present • Theory and principles of change management • The processes, ADKAR and Organizational phases • Connecting change management and process improvement programs
Lessons from the past • In countless studies the one thought voiced over and over by those who tried to implement large scale changes is “more effort should have been spent on getting people to change their behaviors willingly” -or- "utilize an effective and planned change management program."
Change Management Definition • … is about managing people in a changing environment so that business changes are successful and the desired business results are realized • Hiatt & Creasey, p.10
Two Perspectives of Change • Organizational and Individual • Priorities • Motivations • Knowledge sets
Senders and Receivers • Each change is always viewed from the perspective of a sender and a receiver. • What the sender says and the receiver hears are usually two different messages. • Factors Influencing what is heard: career plans, home, past experience, friends, performance, trust • Primary business impact sender -- Top Mgt • Primary personal impact sender -- Immediate superior
Resistance and Comfort • Resistance is the Norm – • Plan for it • Expect it • Assess how much change is already present • Determine cause of resistance and • Then remove cause
Authority for Change • #1 success factor -- VISIBLE, ACTIVE, CONSISTENT EXECUTIVE SPONSOR • Who has power to legitimize and sanction • Executives • mid management • Professionals/employees
Value Systems • Old Value • hierarchical, control oriented, predictability • New Value • responsive to customer, flat, empowerment, accountability • MUST address both perspectives (Individual and Organizational)
Incremental Versus Radical Change • Type and size of change determine the level of change management levels • Order of magnitude of change • Incremental needs less • While Radical needs more
The Right Answer Is Not Enough • Give and take is essential for success • Right answer to a business problem is not sufficient to overcome employee resistance • Doing the "rational" best vs. • Involving everyone and "buy-in" for success.
Change is a Process • Takes time • Stages • Individual level and • Organizational levels. • Ideally both are going their stages at similar speeds.
The Processes For Individual Change Management
Business Improvement Process Steps Change management component Integrating Change Management with process improvement
Connecting change management and process improvement programs Which diagram shows a superior change management plan? Why?
Discussion Questions • How does the principle of senders and receivers make the project communications effort more complex? Give examples. • How important is ADKAR framework for directing the implementation of IS projects with end users? Give examples. • Why would a project run more smoothly when change management is emphasized from the beginning?