Introduction

Transforming your supply chain management (SCM) IT system is challenging, and not just because technology is hard. Success hinges on more than that. This blog emphasizes the critical need to focus on process and people, not just software. A smooth, successful transformation requires deliberate change management that impacts how supply chain managers work and communicate across the organization. That aspect is just as (maybe even more than) important as getting the software working.

In a previous blog, I discussed how senior leadership engagement, business process analysis, and proper communication will ensure that your project is a successful one. Here, I will discuss some of the softer elements of successful transformations, including effective project execution, nurturing the team, persevering, and celebrating accomplishments.

What Else Makes a SCM System Transformation Successful?

Once you’ve gotten your senior managers on board, completed your business process redesign, and established your lines of communication, your transformation is in full swing. Change management, explicitly dealing with the impacts of the transformation on the people in an organization, is often ignored or treated as an afterthought.

Do not underestimate how vital change management really is. Ideally, the role of Change Master is explicitly assigned. Sometimes it’s the project manager; sometimes it’s a dedicated job. By the time you finish this blog, I hope you will appreciate how important it is to have someone on your team who is trained and focused on the following aspects of your transformation journey.

Effective Project Execution

Throughout the project, you will be challenged with staying within scope, budget, and timeline. This piece is standard project management practice. Know the issues and be pro-active.

I recommend following the Agile software development methodology, particularly the aspect of iterative development. Engage key users to provide feedback at numerous milestones, not just at the end. If course correction is needed, it’s better to know sooner rather than later.

Nurturing the Working Team

As you build the team, consider that these people will be working closely for the next few months. Keep in mind that an effective team comprises members with the following traits:

  • Common identity
  • Strong respect for each other
  • Desire to do whatever it takes
  • Conviction in goals

They should have clear goals and directives, because they should have been involved before the actual system implementation began. Once the direction has been set, give the team ownership to work the details as much as possible. Nurture the team by making sure they can get the resources they need and protecting them from distractions. Too often, executives launch the initiative, give the pep talk, and then go back to their office. They should always be there, supporting the team, but the team should be the driver.

Persisting and Persevering

Ruth Kantor, an expert in change management, points out that “Everything can look like a failure in the middle.” After months of hard work, people are bound to get tired. There will be setbacks, guaranteed. Anticipate this so that you are not caught off guard. Change leaders and executives must be flexible enough to deal with a variety of disruptions and distractions. Here are common problems encountered in SCM transformation projects:

  • Forecasts and budgets fall short. If this is something no one has done before, it is very difficult to guess how long it will take and how much it will cost. It is foolish to measure too tightly against the initial script.
  • Unexpected obstacles pop up. Expect the unexpected. Don’t panic.
  • Momentum slows. Revisit the mission with the team, recognize what has been achieved so far and what is left to do. Sometimes, some perks are in order. Consider a day off or a special meal brought in, or even a team-building activity. In the end, though, the best morale booster is a successful solution.
  • Critics get louder. Never stop selling.

It’s crucial that members of the team feel the support of senior management, especially at this time. They won’t just require moral support, but real, actual support to get over these hurdles.

Realistically, however, sometimes persistence can only go so far. If the project is really in a rut, it may be time to step back, re-check the environment and the assumptions, and see how the theme is being played out. It might be time to reset the vision. After all, you now know a lot more than you did when you started. You may need a course correction, but don’t give up. If there was value in this project when you started, it’s still there.

Celebrating Accomplishment

When we remember that a company is made up of people and not just business processes and machines, it’s easy to see why this last step is so important. It’s so important, in fact, that you should not wait until the end to celebrate. Recognition of team members all along the way is not only a fantastic morale booster, but it’s also great publicity. Recognition is possibly the most under-used motivational tool available.

Summary

Companies spend a lot of money on SCM software. They can maximize their return on that investment if they take the time to set the stage for the transformation. It requires much change, and managing that change is so much more important than many people realize.

We know from experience that the top obstacles to successful change are inadequate senior management sponsorship, broken and disconnected business processes, poor project management and communication, and employee resistance at all levels: front-line, middle managers, and senior managers. When asked what they would do differently next time, most teams say they would dedicate resources to change management.

Read more here Lessons Learned from a Complex Transformation Project.

To dive deeper into these challenges and learn practical strategies for overcoming them, join our upcoming webinar, How to Succeed at Supply Chain Transformation. We’ll explore how focusing on people and processes, not just technology, can help ensure a smooth and successful transformation. This is an opportunity to gain insights that could make all the difference in your supply chain journey.