Tuesday, July 08, 2003

Managing change is key to enterprise system success. One of the key points in my AICPA presentation this week will be the need to treat enterprise systems projects as change management efforts. The McKinsey Quarterly this month has an excellent article on the psychology of change management, and it outlines four conditions for changing the mind-set of employees. They are:
  1. A purpose to believe in. "Employees will alter their mind-sets only if they see the point of the change and agree with it—at least enough to give it a try."

  2. Reinforcement systems. "The surrounding structures (reward and recognition systems, for example) must be in tune with the new behavior."

  3. Training in skills required for change. "Many change programs make the error of exhorting employees to behave differently without teaching them how to adapt general instructions to their individual situation."

  4. Consistent role models. "Employees must see people they respect actively modeling the change."
According to McKinsey, each of these conditions is realized independently. but "together they add up to a way of changing the behavior of people in organizations by changing attitudes about what can and should happen at work."

The article is on the McKinsey Quarterly web site.

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