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Managing technology change to secure improved performance
Change is an inevitable part of both social and organisational life. In today’s business world, where most companies see IT as a significant enabler of growth, it is perhaps to be expected that technological change will be a significant part of any organisation’s long-term investment strategies. What is surprising, however, is that some companies do not have an adequate formal strategic plan in place for managing this change.
Whether the change comes in the form of enhancements to a current IT system or the installation of new systems and business software, managing this change can present certain challenges. Simply investing in IT is not enough – those responsible for introducing new technology or improvement initiatives into their organisations must carry out careful planning and ongoing assessment in order to make the most of this investment and secure improved business performance.
Drivers for technological change
Today the importance of new technology applications is widely recognised due to the key role technological improvement plays in increasing efficiency and productivity within a business. Sometimes investment will take place as part of an ongoing overall strategy in which an organisation regularly reviews its business systems to ensure they are meeting company needs effectively. In other cases a company will simply realise that their current business software is ineffective and outdated. Most frequently, however, technological change arises due to a change in business model, processes or strategy, usually as a result of mergers and acquisitions or other changes in company size, the introduction of new regulations, the need for greater efficiency, new business opportunities or increased competition.
“In our experience,” says Sally Reynolds, Marketing Manager of specialist software provider Syscom PLC, “the main drivers for companies to change or update their business software systems are to improve business processes or reporting capabilities, achieve better system integration or reduce the total cost of ownership. Inflexible ERP systems can be constrictive, imposing bad business processes on an organisation or obliging users to create sidebar systems. They can also make it difficult to retrieve key business data for reporting and analysis. Where this is the case, or where organisations lack the comprehensive business integration needed for effective company-wide collaboration, a change of solution will often be greatly beneficial. Improvements in these areas often also mean that the total cost of ownership of a more flexible and fully-integrated system is lower than that of outdated and ‘clunky’ systems, particularly in terms of productivity and time.”
Sometimes changes with a particular software provider can also lead to a company deciding to change their business systems. Regardless of the software itself, if a company is dissatisfied with the support they are currently receiving from their supplier or if supplier mergers and acquisitions cast doubt on the continued support of a particular system then a company will need to evaluate whether they wish to investigate alternative suppliers.
Successful change can revitalise an organisation and bring about huge benefits in operational efficiency. However, it is critical, especially during an economic downturn, to ensure technological change projects are completed on time, within budget and meet the needs of the business. Good planning and project management are vital in ensuring an organisation achieves these goals.
The role of the Change Manager
General company plans for the adoption of new IT systems and business software, or indeed the enhancement of current systems, rarely dictate the form of the technological change so it is often up to the change manager to firm up the specifics of the project. This in itself can be a considerable task and it is often hard to know where to begin. Breaking down the responsibilities of the change manager can provide a useful overview of the various areas to consider and often highlights the need for the first step in the change process – putting together a change management team. This team should be assigned clear roles and schedules in order to carry out the change project effectively and avoid the duplication of efforts. Regular update meetings can be useful for checking whether the project is running on target and indentifying any bottlenecks or areas of difficulty.
The change management team will need to:
- Analyse current IT infrastructure and systems
- Specify the scope of the project – outline what is to be accomplished by the project outcome and what the business benefits will be in order to manage company and user expectations. This will also include creating methods of reviewing and evaluating the success of the change project after completion
- Define the steps or phases of the change process
- Set timeframes for the completion of the project
- Determine what can be done to mitigate any negative impacts to the organisation during the technological change period
- Assess what the costs involved in making these changes will be.
Planning a project
-System Analysis
The first step in any technological change project will be to analyse exactly what the shortcomings of the current IT systems are. What are the key areas for improvement? What does the company need the system to do that it currently doesn’t? What could the system do better? Of course, care must be taken not to throw the baby out with the bathwater – identifying what the current system does well will highlight what aspects you wish to ensure that an upgrade will not diminish or, alternatively, help in putting together a requirements list for a new system.
-Specifying Project Scope
We all know that even the most successful of technological overhauls will not enable you to produce twenty times as much, ten times as fast and at half the price. However, expectations will inevitably differ as to exactly what the outcome of a technological change will be so it is important to specify early on exactly what will be accomplished by the project. Often putting together a requirements specification document can be useful in managing expectations and making sure everyone is on the same page.
Be specific. If, say, production management has been identified as an important area for improvement, specify which aspects need improving and how. Do you need better requirements planning? Better bill of materials visibility? And by ‘better’ do you mean more quickly, more straightforwardly, with a lower labour input or with more accountability? Or is there a specific task you need to be able to perform, such as materials back flushing or batch tracing? Specifying exact requirements at this stage will help keep the project on track.
While this document can be viewed as a ‘wish list’ for the new system or upgrade, it is important to make distinctions regarding what is required and what is desired. Being clear on what is just ‘nice to have’ rather than essential will stop you spending time looking at inappropriate systems and prevent the purchase of functionality that you do not need and may not even use.
Defining the steps
Detailing the phases of a technological change project and creating corresponding work-flow charts is essential in effectively managing a change in business technology. It is vital to be clear on who needs to do what and in which order, as well as on who is responsible for what. Unfortunately this can also be the most difficult aspect to plan as there a myriad of interrelated tasks to consider, many of which will not necessarily be evident from the outset. This is where speaking with a software provider can help. Their years of experience in software implementation will mean they can suggest an implementation methodology and will often point out steps that may otherwise have been overlooked, as well as being able to give you a good idea of how long each phase will take.
“Different software providers will have different approaches,” advises Sally, “so it is important to check at the supplier selection stage how a provider goes about the consultation and implementation process. For example, we are a Microsoft Gold Partner and use the Microsoft Dynamics Sure Step Methodology. This is the official software process for Microsoft Dynamics™ projects and is the culmination of years of knowledge and best practice in software implementation.”
The Microsoft Dynamics Sure Step Methodology defines the phases of a technology change project, from project initiation to sign-off, indentifying key milestones along the way and suggesting roles and their respective tasks. Of course a role can be performed by more than one person, or one person can take responsibility for several roles. Sure Step can be used for different types of implementations, clearly outlining the different steps needed in a full-implementation, a rapid implantation, an optimisation project and an upgrade, highlight the differences in what each type of project entails as well as providing a good overview of how you can expect your project to proceed.
“Of course each project plan is tailored to suit a particular company’s needs,” explains Sally. “Indeed this customisation is built into the Sure Step Methodology – the very first phases it prescribes for a software change project involve a high level analysis of customer processes. We believe that the understanding of our customer’s business that we gain from modelling and documenting their business operations, alongside our extensive industry experience in the manufacturing and distribution sectors, is vital to a successful software implementation or optimisation. There is of course scope for ongoing revision within the Sure Step Methodology, so customers can update their project plan, enabling a dynamic planning process throughout the project.”
Timeframe targets
You will usually have a date in mind for when this project needs to be completed. Whether this deadline is flexible or iron-clad, setting projected dates for project milestones can help you see whether a project is progressing as quickly as anticipated.
Minimising disruption
One important aspect of managing a technological change is identifying how the new technology or upgrade will affect the business processes already in place. What areas will the change effect? Could you time the project to ensure it falls at the quietest time in your business calendar? Working with a software provider that understands your organisation’s needs will help you to ensure a smooth implementation process. “We often find that this is one of the key requirements of our customers,” says Sally, “so we work with them to plan an implementation process with minimal interruption to the business. When implementing Microsoft Dynamics™ AX for Weird Fish, for example, we ensured the system was put in place in just eight weeks, during their quietest trading period.”
Ensuring cost-effectiveness
As with any project, it is essential to assess what the costs involved will be and how these compare with the benefits that will be brought about. However, it can be difficult to accurately estimate the resources that will be necessary to accomplish the specified project scope by the planned date. Here, again, making use of IT suppliers’ expertise can be advantageous. A business solutions supplier will be able to provide you with a detailed quote for the costs involved in implementing, optimising or upgrading your IT systems, as well as the necessary training and ongoing support. They will also be able to outline an estimated return on investment within given timeframes, so you can assess the cost-effectiveness of the proposed change.
Critical success factors
While the change management team will play a significant role in the success of a change effort, the progress and ultimate success of technological change within an organisation will also be determined by other key factors.
One aspect that will impact on the success of a technological change is the extent to which the new or updated technology integrates with existing systems. If this integration is streamlined the new technology will enable you to make the most of existing IT infrastructure and compliment the current procedures you may well wish to maintain. “For example,” says Sally, “our customers are often able to leverage their existing Microsoft infrastructure with Microsoft Dynamics.”
An organisation’s ongoing commitment to assessing the impact of the change will also determine whether a technological change ultimately secures improved business performance. Continually reviewing new systems and procedures to check their efficiency and ongoing fit with business objectives will help keep technological changes relevant and effective.
Similarly, having a good relationship with your IT supplier is crucial in ensuring the long-term success of a technological change – ongoing support after the project-sign off and good communication with your supplier will enable you to get the most out of your technological investment. “We believe it is essential to form strong relationships with our customers and work with them as partners to take shared ownership of a project,” says Sally. “For example, we have regular user group meetings with our customers to discuss any modifications and additions they may wish to make as part of this joint, long-term commitment to the success of the technological improvements we support.”
The factor with perhaps the most significant impact on the success of a technological change, however, is user adoption. “You can imagine a technological change in terms of two forces,” explains Sally, “those driving the change and those opposing the change. The success of the change effort will hinge on minimising resistance to the change, as well as the effectiveness of factors facilitating the transition.” Staff resistance to a technological change can lead to morale issues and productivity loss, which in turn impact on turnover, so engaging individuals in a project is crucial to its success. The change management team must, therefore, be skilled in enlisting the support of staff for the objectives and methods of the change, as well as in identifying problems in current systems and devising successful methods for technological improvement.
“Distrust and fear of change is common and convincing people to shift from existing work patterns and routines can be difficult,” says Sally. “In our experience of technological change projects we have found that there are several important things those spearheading the project can do to help secure that all important staff buy-in.”
First, staff must be convinced of a need for change. “Make clear why the change is required and what the benefits will be both individually and for the company. Promoting an awareness of a company’s need to increase competiveness for long-term survival and explaining how technological changes are essential to this effort will, in most cases, make staff realise that the changes actually mean job security.”
Explicit communication with staff throughout the project will build trust and help reduce resistance. “Inform staff well in advance of the introduction of any new technology and provide detailed information on the implications of the change. Making staff aware of a project several months ahead of installation will increase preparedness for the change and continued updates will help avoid rumours and build up confidence.” Develop a communication schedule outlining the channels that will be utilised, such as work committees, briefings, presentations and e-mail updates, as well as whom will be involved in disseminating the information.
Get staff input from the start of a project. “Active involvement from those who will be using the technology will not only increase receptivity to the change, it may even afford important insight into useful functionality.” This is not to say that users ought to be involved in discussions on the principle of investment in new technology or the final selection, but consultation with relevant members of the workforce can make staff feel they are a part of the project and that management value shop-floor expertise.
Help your team adapt by providing adequate training on the new system. This can either be done by organising large-scale training sessions with your software provider or by using a ‘train the trainer’ approach in which a few members of staff are trained to a high level in the use of the technology and they in turn train the remaining staff. “Users cannot be expected to master new technology instantly but we do advise that selecting a system with an intuitive interface, such as the Microsoft Dynamics applications, will assist with the transition. As part of the Microsoft Dynamics Sure Step Methodology we carry out a user acceptance test and consistently find users are surprised by how logical the system already seems to them due to their familiarity with Microsoft Office products.”
Conclusion
Today’s tough economic climate means that now, more than ever, businesses must make changes to equip themselves with the most effective technology available. While the prospect of implementing this new technology in the workplace can daunt even the most intrepid of us, managing technology change can, like most things, be greatly eased by thorough planning and taking advantage of the advice that is available. IT suppliers have a wealth of experience in technological change projects so why not draw from this to help manage an effective technology change in your organisation.
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