The State of Georgia has passed the Accountability, Change Management, and Process Improvement Act of 2016 reinforcing the importance of change management in successful projects. The Act states, “Research has consistently shown that projects with effective change management programs are significantly more likely to be successful than projects with little or no change management programs and are significantly more likely to come in on time and on or under budget.”
Which State is Next to Follow Suit with Georgia?
Is your enterprise considering implementing a Project Management Office (PMO), or do you already have one but are not satisfied with the results? According to a recent study by Gartner, over 50% of PMOs fail within 3 years. This is an extremely high failure rate for such a strategic organizational investment. We believe this failure rate is the result of enterprises failing to clearly define the problem they are trying to solve before embarking on the journey to implement a PMO. Understanding what a PMO is and how it can be used is key to realizing business value from this tool.
Getting the Most Out of Your Project Management Office (PMO)
According to Prosci, a leading research and training firm in Change Management, projects that engage Organizational Change Management (OCM) are six times more likely to exceed project objectives than projects that do not engage OCM. That statistic leads to two key questions: 1) how are project objectives defined, and 2) what is the role of OCM on projects? This article addresses these questions by discussing two types of projects, “traditional” projects and “benefits-focused” projects and the role OCM takes on each type of project.
Project Objectives and their Implications on Organizational Change Management
Organizational Change Management (OCM) is a framework for managing the effects of changes in an organization. These changes can be related to new business processes, organizational structure, technology, or cultural changes. For ERP implementations, OCM leadership is the effort of aligning OCM with executive sponsors to proactively lead their organizations through these stages of change. This approach makes change management as equally important as project management when it comes to achieving and sustaining project success.
Sustaining Through Change
SAP is rising to the challenge of leading business success stories by integrating operations, technology and making the most of data. Today, SAP is creating on-ramps back to the information highways such that companies, in real time, have the information and are ready, willing and able to pass the competition with disruptive strategies and tactical plans to reach their goals.
SAP HANA: Using Data to Disrupt the Competition
The achievement of value should be at the forefront of implementation decisions. It is not customizations that cause ERP projects to fail, but the lack of defined value that should determine if the customization is needed. Value on an ERP project comes from improving capabilities and becoming more efficient. Taking the time to define the areas where the business should focus will ensure that the right capabilities are implemented for a better impact to the business. Read the full article, which outlines the six steps that provide a path for defining value and infusing value through in the implementation stages.
Unlocking Business Value with Your ERP Implementation
Collaboration is one of those values that most companies strive for as part of their culture and their ERP projects, but many fall short of in terms of achievement. Here are three things that will foster the right environment for collaboration on ERP projects:
1. Strong leadership from willing implementation partners
2. Open lines of clearly defined communication channels between partners
3. Defined roles and responsibilities for implementation partners
Fostering Partner Collaboration
Prosci's 2016 Best Practices in Change Management report finds that 95% of projects with excellent change management programs met or exceeded their project objectives. This means that these projects are "six times more likely to meet objectives than those with poor change management." Change is hard but organizations that prepare, manage, and reinforce the people-side of change find it more likely to achieve true project success. Read further and get an inside look at real-world project successes.
The Value of Change Management
There was a time when it was enough to say that a project had an executive sponsor. Every project was assigned a “sponsor” but some were sponsors in name only. If the sponsor on your ERP project approves the budget and then only appears for steering committee meetings, they are not a true sponsor. An engaged sponsor will:
- Set the tone and vision for project success
- Develop realistic scope and expectations
- Communicate with and empower the team
- Be accountable for the project and team success
ERP Success Factors: The Importance of Engaged Executive Sponsorship