The Crucial Role of Change Management in ERP Transition
When one of Sweden's largest grocery retailers needed to upgrade its processes to enhance customer service and offerings, a comprehensive change was essential. The transition from a functional to a process-oriented approach was necessary to best leverage future digitalization efforts and automated logistics, with a modern, capable ERP system at the heart of the digitalization strategy. Zington was entrusted with leading the change management within a segment of the program.
Challenge: Balancing Standardization with Individual Needs
The introduction of an ERP system poses significant challenges for both the client and the provider. The client undergoes a substantial transformation, with vast segments of the business starting to operate under common processes and practices. The goal is to utilize standard IT solutions as much as possible, leading to a shift in many existing operational methods. Often, it also involves balancing the benefits to the organization as a whole against individual preferences.
Solution: Effective ERP Implementation and Change Management
A significant aspect of the change process was establishing a unified view of the workflow within the various streams of the program. Achieving this required simultaneous activities at different organizational levels to build awareness and understanding for the new operational methods brought by a fresh business system.
Impact of Business System Change on Operations A large part of Zington's role focused on capturing the business impact of the change and understanding the needs of those affected. Integrating new processes and operational methods is part of the new business system's implementation. We developed a plan to mitigate business impact and supported responsible managers in anchoring the new processes within each unit.
Result: Process Optimization and Foundation for Ongoing Development
The client has completed the first of several steps in a full ERP rollout. This has established an initial structure for new processes and practices for purchasers and suppliers and has brought greater clarity on how the business should operate and collaborate. It's the first step towards enabling a more business-oriented approach and a fundamental prerequisite for upcoming phases in the implementation plan.
The Need for Change Management
Change Communication During Business System Transition
Throughout the project, the organization was supported with clear change communication to foster awareness and engagement among employees. This communication included written internal messages and regular informational meetings, encouraging open questions and discussions to foster inclusivity and dialogue, all to maintain the change effort's coherence.
Operational Transition
An essential step in effecting change across the organization was involving all employees. We worked in smaller groups focusing on visualizing the end goal, clarifying why changes were necessary, and explaining "what's in it for me?". Planning and executing training was crucial to ensure all employees understood how to use the new system, felt motivated, and to facilitate a successful implementation.