Change Management: Why Keeping People Happy is Key to Digital Transformation Success
Organizations are constantly evolving. This is especially evident in higher education, where digital transformation, especially through the adoption of complex ERPs, can vastly improve learning and administrative processes. However, one critical element of this equation remains: the people involved.
Change management helps facilitate smooth transitions by preparing individuals to adapt while minimizing disruptions.
Let's explore why effective change management is indispensable for the success of digital transformations.
Minimizing Resistance to Digital Transformation
Resistance from employees can be a significant challenge during transitions. Often, this resistance arises from fears of losing roles or control over their work. Change management anticipates these concerns and addresses them by involving employees early in the process.
For example, organizations that introduce new ERP systems can create focus groups for employees to provide input on features that would enhance their daily tasks as well as share fears how the technology may disrupt their work. When employees feel included and valued, their sense of ownership increases, reducing feelings of threat and paving the way for a more cooperative transition. Regular updates and open communication channels make employees feel part of the journey, leading to a smoother adaptation.
Aligning Organizational Culture
Digital transformations require alignment with an organization’s culture and values. Effective change management connects projects with these foundational elements, enhancing overall initiative success.
For instance, a university implementing a new ERP should communicate clearly and often how the transition will support the institution's mission and values. When employees observe that changes support the organization’s core purpose, they are more inclined to trust the process. This alignment cultivates a culture of acceptance and cooperation, vital for maintaining momentum throughout the transformation.
Sustaining Employee Engagement
Engaging employees during transitions is vital for successful change management. When staff members, as well as faculty and students, actively participate in the change process, they often feel recognized and crucial to the organization's success.
Organizations can create opportunities for feedback and encourage participation in various ways. For instance, running workshops with each department to brainstorm ways to best support and integrate that department's role into the ERP can foster a sense of community and shared goals. According to a study by Gallup, organizations that maintain high employee engagement see a 21% increase in productivity. This demonstrates that an engaged workforce is more likely to support change initiatives.
Enabling Smooth Transitions
Change management plays a critical role in clarifying future roles, responsibilities, and workflows. Uncertainty will hinder a smooth transition. When employees clearly understand how changes impact their work, they can adapt better and with less resistance.
Provide distinct role descriptions and training programs tailored to the new ERP. For example, providing a variety of training opportunities, live and/or recorded, that best fit each constituent group can clear up uncertainties and reduce anxiety. Knowing what is expected of them makes people feel more confident navigating the new landscape.
Improving Adoption Rates
Beyond training and communication, change management underscores the need for proactive strategies—such as organizational assessments and workshops—to ensure employees adopt new systems and utilize them well.
Institutions can often identify potential barriers to adoption early on and provide individual support, as needed, for key staff roles struggling with the new technology. This makes a significant difference to the individuals as well as other staff members observing from afar. According to a report by Prosci, organizations with strong change management practices report 70% adoption rates compared to 50% in those that don't prioritize change management.
Reducing Project Risks
Finally, failing to manage change leads to delays, increased costs, and decreased technological functionality. Proactively addressing resistance can prevent setbacks that might derail a project.
Implementing a robust change management plan from the beginning of a project allows organizations to anticipate challenges, monitor progress, and adjust as needed. According to a study by McKinsey, organizations that invest in change management improve their chances of achieving transformative goals by up to 30%. With careful planning, what seems like a daunting task can become a manageable and sustainable process.
Final Thoughts on Change Management
In a world where digital transformation is becoming the norm, organizations—especially in higher education—must prioritize change management for successful transitions. Focusing on the human aspect of change can help minimize resistance and boost employee engagement and adoption rates.
When employees feel informed and valued, they are more likely to embrace new technologies and processes, leading to better overall outcomes. The next time you embark on a digital transformation journey, remember: keeping people happy and engaged is the key to success.
At Legato, we recognize implementing an ERP while simultaneously carrying out a change management strategy is often out of reach. Reach out to us to brainstorm ways we can support your institution to maximize your technology, but most importantly, maximize your institution's potential.
