Extra Strength
October 27th, 2009
Risk Management technology … Using change management industrial-strength
Often, a group of IT will be punished because of new technology inserted into the company did not provide trade benefits that were promised. When this occurs, the group, he is confused because that the technology works as advertised technically. However, after further examination, we often find that user groups are not properly using technology (and sometimes not at all!).
Industrial strength change management initiative can avoid this by providing integration, the action of the organization to the scale that is required for technology to succeed.
Although the benefits of large technological systems as ERPs have proven important for many companies, the implementation of these systems has proved to be a risky proposition.
The size of risk, which can run to tens of millions of dollars for new systems, or in hundreds of millions of potential disruption the organization or its customers, calls for aggressive and systematic risk management to ensure success. Risk management must respond to three types of risks associated with implementation of systems size: technical, organizational, and business risk.
Business and technology providers have been making high quality risk management twenty years. Most risks that have been managed are what we call the technical risks of project implementation.
The best layman definition of technical risk is associated with critical issues – that the system works, it'll work on time, and it will happen in the budget?
This kind of technical risk, while poor management from time to time, is generally handled well by a combination of business professionals and suppliers. To be sure of achieving full market value, companies must go beyond risk management techniques. However, for really big, comprehensive technology insertions (as ERP, CRM or Supply Chain), other types of risks must also be well managed for the enterprise implementation to receive the Valley business they need.
"Organization of risk", we mean the ability of the organization not to use all the expected functionality of the new system or, in some documented cases, use the new system at all. Failure to use the new system could be caused by a number of factors – two of the most frequently found and the factors are mortal "inadequate preparation of users / preparation "and" resistance to the workforce. "
By "business risk", we mean the possibility the most expensive to implement the system will not be paid in "dollars and cents" for the enterprise implementation. Failure to obtain the result of comprehensive business could be caused by a number of factors. One of the factors of failure is most frequently found lack of alignment between the work processes embedded in the system and business strategies and corporate priorities.
* We use risk management techniques to ensure ERP system works technically.
* We use the organization's management risks to ensure the organization will use the new system.
* We use operational risk management to ensure organization will expected benefits from its use.
Change management is the main weapon of the organization and manage business risk. Unfortunately we typically low resistance change management used in many system implementations. Low resistance management of change focus only on communication and training system, just make the user ready to accept the new system, but barely able to use for its purposes.
Managing change is necessary, on the other hand, must take the organization and its many users much more to ensure that the new system can and will be fully integrated into the daily operations of all parties concerned of the company by the deadline. We call this extra-strength version of change "operations management integration."
Integration operations is the set of knowledge and practice that is used to ensure that a complex change, such as that associated with inserting great technology, gets the results right, within the time right at the right cost.
Operations Integration is an approach disciplined applied in all organizational units that will operate the new system to ensure the acceptance and willingness to use the new system fully and competently to "go live." integration of operations includes:
* Clear communication of a vision system is fully utilized in the organization
* Direct communication with the obligation to use the pending full by each worker concerned
* Work reformed and aligned processes are integrated into the system
* Work processes and instructions documented worker placed in the official policies of the company and Working Procedures
* Roles / Aim / objectives of workers modified to fit the alignment process and use the new system
* The users / workers formed in the alignment of work processes integrating the new system
* Performance Management System in place to encourage performance and failure to use DIS-incentize
* All the affected workers "under contract" to be ready, willing and able to fully utilize the new system to "go live."
Operations Integration is a great initiative that must be aggressively managed along the side of the proposed technical implementation. The goal is to have users willing to exploit fully the system as the technical implementation is complete.
Formidable or not, the integration of operations should be given the highest priority by the leaders of the organization or the organization will fail to fully realize the benefits of the technology in place.
New technology can promise and often provide significant business results in today's environment of highly competitive business. But delivery These results strongly depends on the discipline of integration operations which operates the three major risk categories – technical, organizational, and business risks.
Unfortunately, this kind of comprehensive change management is a challenge for many of today is groups that focus only on solving technical problems while corporate risks and are left to chance.
The message today is very clear: use integration operations to plan and manage the three types of risks effectively or keep what you have in the way including systems and business processes. Moving forward without having to manage all three risks is a recipe for disruption of the organization and even disaster.
About the Author
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Dutch Holland is principal and founder of Holland & Davis, specializing in helping clients implement change.
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