Business Strategy - Managing Change

Change management, is an area of management, concentrating on operating at an optimal capacity, by changing the systems of the organization to keep up with its environment. It is an integral component of any long term business planning and system building process.

An introduction or modification of an information system has a significant influence on individuals, teams, and organizations. Any change in the way information is gathered and/or collected can lead to a shift in power and authority within an organizational hierarchy.

Implementation Management

To effectively manage the change to a new information system, a thorough examination of the implementation process needs to be examined. A change agent completes the examination. The change agents’ role is to solve and redefine the system functions, job activities, and relationships, of the numerous organizational groups. The change agent liaises with these groups and related parties to ensure the transition is finalized.

The Role of End Users

The end user plays an important role in the system implementation process. If users are involved in planning the functions and the design of the system, they have greater control over the outcome. Another benefit is that users are far more likely to get on board with the new systems if they have been involved and feedback has been integrated to the completed system.

There can often be issues with communication between Information systems and end users. Systems experts possess superior technical and programming skills, whereas end-users rely on a system that is easy to use and is efficient. What’s considered good design or usability by systems experts may be a world away from the opinion of most end users. This problem is known as the user-designer communications gap. If the gap between end users and systems experts is not bridged then there is a big risk of things going wrong. End-users are frequently excluded from the implementation process.

Management Support

When management at numerous levels give their support for an information systems project, it is likely to be received positively by both technical experts and end-users. Management backing also assists in obtaining the appropriate funding for the project to go through to completion. The new system will be accepted favorably by lower level employees if the manager gives priority to it.

Change Management Challenges for Large Corporations

Considering the hurdles of innovation and implementation, it is no surprise that some studies demonstrate a 70 percent failure rate when dealing with business process reengineering (BPR).  BPR systems usually require widespread change throughout an organization by replacing systems that are deeply linked to many interrelated processes.

Major systems projects can be set back if poor management change processes leave staff uncertain and fearful of unknown impacts and changes. The factors that affect staff create the greatest risk of system failure as opposed to designing business planning processes.

Projects involving mergers and acquisitions show a similar percentage rate of failure. When two companies possessing archaic systems merge, the problem is amplified. If the amalgamation is poorly managed, the end product is nothing more than a combination of inadequately designed and ineffective systems. With a poorly managed integration, the potential of the merger will not be attained, or worse, customers may be lost.

A great number of information systems projects collapse due to a lack of careful management when implementing system building.  To successfully introduce or alter an information system within an organization, strategic change management is required.

Article from Change 2020 who have a team of leading business consultants specialising in leadership development.