How change management contributes to the success of IT transformation

Companies face a variety of challenges with regard to their IT landscape. These include, for example, the implementation of SAP S/4HANA as an ERP system or the use of artificial intelligence (AI) or robotic process automation (RPA). These challenges have one thing in common: the success of the change depends on the people who execute the change project. IT projects involve complex changes: users have to familiarize themselves with new systems, adapted processes and unfamiliar ways of working. Fears, worries and rejection jeopardize the success of the project.

5 recommendations for successful Organizational Change Management

Digitization projects such as the introduction of SAP S/4HANA usually involve a holistic business transformation in the sense of a comprehensive renewal of the IT landscape with SAP S/4HANA as the digital core. The complexity of the transformation is considerable. The effects take place on a process, structural and cultural level and cause corresponding interactions throughout the entire organization.

Focus of OCM is on the people

Comprehensive Organizational Change Management (OCM) in a project does not focus on technical implementation, but on people and their participation and empowerment. This means that integrating OCM as a sub-project into the project structure at an early stage is a crucial success factor for managing change projects effectively.

Often, companies fail to achieve their goals with change projects because there is a lack of acceptance and resistance to the change or simply fear of the new. If people in the company are not informed about and involved in the changes at an early stage, this leads to declining motivation and lower employee loyalty to the company.

The ability to manage change is a key factor in the success of projects. However, companies often lack the necessary skills for Organizational Change Management and an understanding of what this discipline can achieve. In addition, there is simply not enough time, as day-to-day business also still needs to be done.

Establishing a culture of change

If you want your change project to succeed, you start with people and make them stakeholders. Empowering people to implement a change is the central aspect of OCM. With a structured methodology that is closely linked to project management, and with a toolbox full of templates and measures, Organizational Change Management creates a culture of change for everyone involved. It helps break down old structures so that new things can emerge. In complex transformation projects, OCM means looking at the interplay of processes, technology, culture and people.

What Organizational Change Management does in the project:

• Detailed analyses of the impact of the change on the people or groups of people affected
• Methods to address and resolve fears or resistance
• Targeted stakeholder management through the creation of a communication and participation plan with all the measures to be taken
• Needs-oriented training and education concepts
• Monitoring of the implemented measures (success controlling)
• Fast set-up and off-boarding at low cost
• Ready-to-use tools and templates
• Project-specific systemic interventions (coaching, pulse checks, etc.)

Increasing demands on project management

IT projects are becoming increasingly complex. This also increases the demands on project management. Experience has shown that companies have limited opportunities to successfully implement digitization projects. Often there is little project management expertise or the relevant experience is lacking. In addition, human resources are not sufficient to adequately handle projects in parallel with day-to-day business. Last but not least, suitable tools for project management are not available. Their development and acquisition can be quite costly.

Project managers and change managers have different tasks

The project manager has a different focus in the project than the change manager. He works with a standardized project method (for example IPMA, Scrum, SAP Activate) and uses the appropriate tools (templates, Jira, MS Project, etc.) for professional project execution. He is responsible to implement the IT solution (in time, budget and quality). Companies face the challenge of finding well-trained project managers who have the appropriate IT know-how.

The change manager is responsible for ensuring the acceptance of the affected people for the new IT solution, reducing resistance and fears, and achieving empowerment so that the change can be implemented. In short, the project manager and the change manager are completely different roles and have different responsibilities. Therefore, it is important to integrate OCM as an independent sub-project or work package in the project setup from the very beginning.

The role of the Project Management Office

A Project Management Office (PMO) monitors the use of the project methodology and supports the project participants in implementing the methodology with the appropriate specifications and templates. The PMO ensures that the project runs smoothly by structuring the project in a targeted and continuous manner. The relief for the project management is enormous: setting and documenting deadlines, preparing presentations, organizing the project filing and preparing important key figures for project controlling – these activities of the PMO ensure a continuous project flow.

The management of projects causes a high administrative effort. Due to scarce resources, this effort is anything but easy for companies to handle. This means that either project administration or project execution suffers from this constellation. With the help of a cross-project and centralized Project Management Office, an optimal and even workload of all project participants is ensured and the project management is relieved of administrative tasks.

Conclusion: Better with PM, OCM and PMO

The harmonious triad of qualified project management, Organizational Change Management and Project Management Office represents a key factor for the successful implementation of an IT transformation. In this way, companies create a successful link between business, IT expertise and people – and lay the foundation for the transformation to succeed in the long term.