"It is not necessary to change. Survival is not mandatory "

--W. Edwards Deming

The drivers of change are innumerable. A new business need or opportunity arises, the company starts a project, processes are reengineered, the organizational structure undergoes a transformation or a solution is implemented in each case change is inevitable. In most cases, the success or failure of a project depends on how well this change is managed. Gaining competitive advantage through technological advancements in IT is no different.

Why > What > How

Need > Present state >Project/Course of action > Required/Desired state > Goals

Enterprise software

Huge applications like enterprise resource planning (ERP); customer relationship management (CRM); supply chain management (SCM); and knowledge management are just some of the trends that have led to federated, disconnected information systems. Consolidating information from these disparate applications to aid in a consolidated view is becoming more & more difficult, information that is vital to ensure minimum resistance before, during & after change, information that could have built awareness of the business need to change. Even more difficult is to provide a picture of the future based on present data.

Successfully managing change is the difference between installing an application & implementing an application. There can be no return on investments (ROI) from software packages that only get installed. Choosing a software based on organizational requirements or custom development & subsequently its installation, customization user training and system performance are areas where a greater degree of control is possible than in a situation where there is resistance to use the application.

Unfortunately, the top management in many organizations views enterprise applications as just another IT initiative, not much different from say a hardware upgradation project. Communicating the need for such a project to everyone who will be using the system is not considered critical. Benefits from an enterprise application can only be reaped when business processes are realigned to leverage the avenues made available due to the new application. A change in software or a new application does not necessarily change the way people work. Change in business processes has to be planned out much earlier. People involved in those processes need to be taken into confidence. Decision-making powers for software customization should be percolated down the line. Otherwise requests for change will invariably be reluctantly and sluggishly responded to or, at worst, rejected.

Outsourcing

IT outsourcing is an area in which the importance of change has been greatly undermined. Present employees may have to be transferred to the IT suppliers' premises to manage the project at their 'site'. Project managers in organizations will have to learn not to involve themselves in remote day-to-day management of the execution of the project (the way they would have done things in-house) nor treat it as an outsourced problem (as opposed to an IT project with set goals). Change looms large when a restructuring, downsizing or rightsizing exercise is undertaken following the outsourcing. However the biggest change in IT outsourcing takes place when a vendor sends engineers onsite. The magnitude of change these employees face is much more than what happens when they change jobs. Part of it is because a change of job could be an individual's decision, something he/she has put much thought to & is ready for the consequences. As far as onsite IT projects are concerned, news can come in just a week in advance. Another problem area is keeping two companies satisfied; companies with different work cultures, compensation schemes & policies.

The cause can be a facilitator

The importance of managing change was realized during the heightened popularity of BPR initiatives & increased with the huge enterprise wide IT initiatives. IT is recognized as one of the foremost factors that have accelerated the pace of change. It is therefore ironical that IT itself has solutions to address change effectively. Change management software, collaboration tools & effective communication tools claim to make life easier when an organization is faced with sweeping change. These tools however come packaged with the regular side effects, primarily a change in the way change management is handled in the organization. With a visionary top management & informed employees working towards a common goal, these tools can prove to be powerful change management aids.

Skill sets in managing change is featuring more & more in IT managers' profiles. KRAs include enabling a smooth transition & overcoming employee resistance. Surveys have indicated that companies are willing to pay a 10% higher salary for IT managers who have a successful track record of managing change. As the realization of importance of change in IT initiatives increases, change management procedures in companies is bound to get a lot more standardized & demand for people who can handle & manage change better will be at a premium.

your comments on the article

contact the author

Share this newsletter!
If you know colleagues who would be interested in this newsletter, please direct them to http://www.webizus.com/newsletter.html

To unsubscribe from the monthly newsletter, click on the link below to e-mail your request to us. YOU WILL RECEIVE NO FURTHER NEWSLETTERS from Webizus Technologies if you do.
newsletter@webizus.com?subject=unsubscribe

Webizus takes your privacy seriously. To learn more about Webizus' use of personal information, please read our Privacy Policy at http://www.webizus.com/privacy.html

Disclaimer:
Webizus through the content published makes no warranties or guarantees about the products/ services represented or about the articles presented in the newsletter. The articles by various authors are entirely their own opinion. Webizus holds no responsibility to any damage or loss incurred in any form to any person or organization due to the publication of any of the issues.

Copyright ©1999-2002, Webizus Technologies, All Rights Reserved.

For more information mail us on info@webizus.com

Contact us today for a demonstration of how we can cut down your costs and improve your business:
Email us at: info@webizus.com or call us at +91-9821634476 / +91-22-55910132

Download our corporate profile