The four windows of organizational change in training for ERP transformation
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1 White Paper The four windows of organizational change in training for ERP transformation Managing users apprehension to change has always been a challenge for large scale ERP implementations. Moving the users out of their comfort zone of legacy systems requires appropriate mechanisms to ease out the transition. Prevailing methods of training and skills development programs view training with a narrow focus and lack completeness. These traditional methods of ERP training focus primarily on knowledge transfer and enabling users to use the new systems. However, significant aspects of training that can contribute largely to competency development and organizational change are neglected. This paper explores the role of training in ERP driven change - by moving a step ahead from the traditional approach - from knowledge transfer, to competency development, to organizational change. We discuss the opportunities for organizational change through training as four different windows - Association, Expectation, Holistic and Enthusiasm. Each of these provides a view which illustrates a key component of organizational change that can be addressed through training.
2 About the Authors Pallav Goswami Pallav Goswami is a business process and organization change consultant with TCS Global Consulting Practice. He has close to seven years of industry experience and has worked in multiple transformation projects for industries such as Retail, Manufacturing, Media and Broadcasting, Insurance, and Telecom. His areas of expertise include business process re-engineering, operating model, process improvement, organization change management, and organization design. Pallav holds an MBA from the Indian Institute of Foreign Trade, India, and an engineering degree from National Institute of Technology, Rourkela, India. Aditya Upreti Aditya Upreti is a business process and change management consultant in TCS Global Consulting Practice. He has more than six years of industry experience across multiple domains, including Media, Utilities and IT, with a specific focus on business transformation programs. His key areas of expertise include Target Operating Model, business process reengineering, business analysis and change management. Aditya is a certified PRINCE2 practitioner and holds a bachelor s degree in engineering and an MBA in International Business. 2
3 Introduction Failing to prepare is preparing to fail. This saying is perhaps most appropriate in ERP transformations. For any organization undergoing large scale ERP transformation, careful planning and risk mitigation are essential to minimize potential business disruptions. Users, having been accustomed to certain ways of working and technology environment, find it very difficult to embrace changes. I am too old to learn new tricks, How am I going to cope with the changes?, Will I be given adequate training to learn the new system? These are some of the questions that arise in the minds of the users, which, if not answered, may build up apprehensions and reluctance that continue through the transition process. Managing these apprehensions to change has always been a challenge. It is often considered that training can be a ready solution to address these challenges. But unfortunately, it has been observed that due to pressure for the timely completion of the system development and other hard deliverables, training preparation is often assigned a secondary position. The project team usually has to rush through a quick training need assessment, followed by content preparation and training delivery. As a result, a gamut of important aspects of training that can contribute significantly to the organizational change remains ignored. Project delivery is affected and the entire effort risks failure. The Four Windows of Training for Organizational Change Traditionally, training was considered as a method to enable users to work with the new system. This consideration fulfills the primary objective of training but falls short in other aspects that can significantly contribute to organizational change. In a typical ERP implementation program, training is the first instance where users experience the new system. This first association can potentially build a positive influence and open up opportunities for organizational change. On the other hand, poorly planned training as the first association can result in a negative impression of possibly lasting impact. Change opportunities through training can be viewed as four different windows of a training classroom as illustrated below. Central to this classroom are knowledge transfer and training delivery. The four windows represent opportunities for creating positive impact and change. These four windows are Association, Expectation, Holistic, and Enthusiasm. Training Association (Associate users and listen to their voice) Expectation (Manage User s Expectation)voice) Holistic (Provide end to end picture) Enthusiasm (Create excitement to learn) Knowledge Transfer & Skills Development 3
4 The Association window focuses on how to include the users during preparation for training and provide them the opportunity to be vocal about their expectations and needs. If this window is shut, users fail to see the association with training and remain passive receivers. The Expectation window refers to managing the expectations of users on the process and system changes. Several components of the solution remain a makeshift arrangement during the solution design phase that surface during training. These points must be identified and communicated clearly to the users to prevent mismatch in expectation and the resultant disappointment. The Holistic window enables users to view the end-to-end picture of the solution, the linkages, dependencies, and future processes. If this view is missed out in training, participants understanding of the overall business objective and benefits remains incomplete. The Enthusiasm window focuses on those elements of training that can generate excitement in the learning process. A wow experience in the beginning may go a long way to create a positive impact for change. Training in ERP implementation should aim to keep these windows open through an integrated approach aligned with the overall program. The following section explains how organizations can open up the four windows and take advantage of change opportunities through training. Opening up the Windows Preparation for training should progress simultaneously with the overall ERP implementation program. An integrated approach to training with the overall implementation program should be developed to create synergies between the two. Synergy is established when the implementation team makes conscious efforts to keep the windows open and include the above mentioned factors during training preparation and delivery. The Association Window The Association window suggests listening to the voice of users and creating an association with them as a part of the change journey. One way to establish this association is to understand the softer aspects of training and incorporate them during training delivery. These softer aspects may include understanding the past training experiences, learning environment in the organization, expectations of the users, motivators to learn, etc. Association can be achieved through participative Training Need Assessment through surveys, interviews, and workshops. The objective here is two-fold: to identify the parameters for successful training delivery and to include the users in training preparation. Another way to open up the Association window is to understand the competencies of different users in learning the new system and incorporate them into the training plan. A major source of users apprehensions in an ERP transformation is the fear of not being able to cope with the new technology and getting left behind. For instance, in an ERP transformation program for a large-scale manufacturing company in India, it has been observed that the maximum resistance to change was created by the user group that was relatively inept in computer skills. A well- laid training plan that identified these gaps and suggested ways to bridge them, was helpful in instilling confidence in the users. 4
5 The Expectation Window In an ideal scenario, an ERP solution is designed to address most of the operational pain points of a manual or nonstandardized process ecosystem. However, there may remain areas that may not benefit immediately from the ERP adoption. These areas should be identified in advance and communicated appropriately. For example, an interim manual process that may be required till the time the new system stabilizes can be a source of disappointment to the users. Instead of blaming system limitations or other business constraints, a standard operating procedure for the interim solution can be prepared. This should also explain how the difficulty is going to be taken care of in the subsequent phases. Training in ERP is the first place of direct interaction between the solution team and the users. Questions on possible impact of process and role changes should also be properly addressed during training. Inputs from change impact analysis of both processes and roles can be useful in execution. The Holistic Window The Holistic window suggests providing users an integrated picture of the solution. In the absence of this picture, users fail to see the linkages and the dependencies with the other departments. Training should therefore not only be focused on teaching how to do a transaction right, but also on why to do a transaction right. The impact of one process on the others should be clearly explained to encourage users to follow the best practices. However, in most cases, these finer points are overlooked during training delivery, possibly due to inadequate attention or time constraints. Apart from instructions on how to complete a transaction, training content should also cover the end-to-end business processes in the form of presentations, handouts, and process maps - with the focus on what s changing with the introduction of the new processes. The extent of business process documentation or mapping may vary based on the scope of the project. It is imperative that the holistic picture of the future state must be captured and explained to users as a part of the training program. Both the system and process experts must work collaboratively to develop the training content and delivery mechanism. The Enthusiasm Window Training plays a crucial role in creating a positive drive for change and the excitement to learn. IT training programs are usually considered lackluster - possibly due to their inherently technical nature or due to the common perception prevailing hitherto. In ERP training programs, such perceptions are further compounded by the fear of learning new tricks or the unwillingness to change old habits. Therefore, the design of a training program should be apt. The benefits of the changes must be explained first to set the initial momentum. This helps the users to correlate training with their everyday work, understand how it contributes to the bigger picture, and thereby develop interest. Training content should be designed to develop this interest and facilitate easy understanding of the new processes and transactions. Training infrastructure also plays an important role. Imagine a classroom not equipped with proper network connectivity and users struggling to complete transactions which they are expected to believe will work flawlessly in the future! These hygiene factors, or dissatisfaction reducers, by themselves cannot enhance the inherent system capabilities or the designed solution, but their presence can definitely enrich a user s learning experience. A leading retailer in the Middle East region applied these practices during the training program of a large-scale ERP implementation project and achieved significant benefits. A participative method was employed to interact with 5
6 the users and communicate the benefits of the new processes and systems. This exercise helped raise the enthusiasm level of the users to experience the new system. Moreover, training delivery included exercises, quizzes, and puzzles that instilled fun and humor in the classroom. Participants shared positive feedback and reported that this method helped them achieve a smooth transition and significantly reduce resistance. Conclusion Training in an ERP transformation program addresses skills development and knowledge transfer, along with an entire range of organization change opportunities. An effective training program must aim to leverage these change opportunities through appropriate interventions. A well-laid training plan that integrates with the overall transformation plan is helpful to develop synergy between the two and derive maximize benefit from the change opportunities. 6
7 About TCS Global Consulting Practice TCS s Global Consulting Practice (GCP) is a key component in how TCS delivers additional value to clients. Using our collective industry insight, technology expertise, and consulting know-how, we partner with enterprises worldwide to deliver integrated end-to-end IT enabled business transformation services. By tapping our worldwide pool of resources - onsite, offshore and nearshore, our high caliber consultants leverage solution accelerators and practice capabilities, balanced with our knowledge of local market demands, to enable enterprises to effectively meet their business goals. GCP spearheads TCS's consulting capacity with consultants located in North America, UK, Europe, Asia Pacific, India, Ibero-America and Australia. Contact For more information about TCS' consulting services, us at global.consulting@tcs.com, or visit Subscribe to TCS White Papers TCS.com RSS: Feedburner: About Tata Consultancy Services Ltd (TCS) Tata Consultancy Services is an IT services, consulting and business solutions organization that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT and IT-enabled infrastructure, engineering TM and assurance services. This is delivered through its unique Global Network Delivery Model, recognized as the benchmark of excellence in software development. A part of the Tata Group, India s largest industrial conglomerate, TCS has a global footprint and is listed on the National Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at IT Services Business Solutions Outsourcing All content / information present here is the exclusive property of Tata Consultancy Services Limited (TCS). The content / information contained here is correct at the time of publishing. No material from here may be copied, modified, reproduced, republished, uploaded, transmitted, posted or distributed in any form without prior written permission from TCS. Unauthorized use of the content / information appearing here may violate copyright, trademark and other applicable laws, and could result in criminal or civil penalties. Copyright 2013 Tata Consultancy Services Limited TCS Design Services I M I 01 I 13
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