Definition: Change management
Change management refers to all measures, methods and principles that companies use to structure change and successfully guide the people affected through this change. The focus is not only on implementing new processes or technologies, but in particular on adapting the corporate culture, attitudes and working methods of employees. The aim is to reduce uncertainty, minimize resistance and create acceptance for the changes.
Practical example:
A medium-sized company introduces flexible working hours. Change management ensures that managers and employees understand the advantages of the new model, how it is organized and what rules apply. This includes workshops, information materials and regular feedback sessions.
Change management in the context of ERP projects
Change management becomes particularly important in the context of ERP projects. The introduction or replacement of an ERP system is far more than a purely technical IT project – it often affects the entire organization, its processes, role models and work culture. Without targeted change management, many ERP projects fail because users do not accept new processes or block the changeover.
In ERP projects, change management includes, among other things
- Communication: providing clear and early information about the goals, timelines and impact of the ERP implementation.
- Involvement: Actively involving employees and managers in the design of the new processes.
- Education & training: Preparing users for new systems and working methods in a practical way.
- Consider corporate culture: Take fears, reservations or resistance seriously and address them in a targeted manner.
- Follow-up support: Offer support even after the go-live so that the new solution becomes established in everyday life.
Practical example:
A retail company introduces a new ERP system that automates warehouse management. The warehouse employees are worried about losing their jobs or complicated technology. Trust is built up through targeted workshops, test phases with real work processes and open discussions. The employees ultimately recognize the benefits – fewer errors, less stress – and actively support the changeover.
Why change management is important in ERP projects
An ERP implementation is far more than just an IT project – it often means a deep cut in the usual working methods, responsibilities and communication channels. Those who neglect change management not only risk frustration and resistance, but also considerable additional costs, delays or even the failure of the project. Professional change management ensures that everyone involved understands the purpose and benefits of the change and actively supports the transition.
Typical Risks Without Change Management
Without targeted change management, the following problems often arise in ERP projects:
Resistance to new processes:
Employees often resist change because they don’t understand the necessity for it or are afraid of it.
Example: A new ERP system is being introduced in a manufacturing company that digitizes work preparation. However, employees prefer to stick with their old Excel spreadsheets because they fear the digital solution will be more complicated. The new system is hardly used, and the hoped-for benefits are not achieved.
Lack of acceptance due to inadequate training:
Even the most modern ERP system is of no use if users can’t operate it or feel overwhelmed.
Example: In a trading company, order processing is being completely migrated to the new ERP system. However, the sales staff receive only superficial training. As a result, input errors occur, customer orders are delayed, and team morale deteriorates.
Information deficits and rumors:
Where communication lacks, rumors fill the vacuum. The uncertainty can be greater than the actual challenges.
Example: There is a rumor circulating within the administration that the ERP implementation will result in job cuts. In reality, the goal is simply to streamline processes. The lack of communication has escalated the unrest and put a strain on the project.
Increased costs due to subsequent improvements:
Lack of involvement of departments often results in processes in the system not matching reality. Expensive adjustments must be made after go-live.
Example: In a logistics company, ERP is implemented without involving warehouse management in the process definition. The system does not map important special processes. Subsequent system adjustments create a hole in the budget.
Success factor: Change management as an integral component
Successful ERP projects view change management not as an additional task, but as an integral part of the project. This includes:
Involving those affected as participants secures valuable practical knowledge and increases acceptance.
Example:
At a mechanical engineering company, production managers are allowed to actively participate in the design of new manufacturing processes in the ERP system. They feel taken seriously and ensure that the solution also works in practice.
Clear information about the goals, timelines, and benefits of the ERP implementation prevents misunderstandings and rumors.
Example:
A company sets up a project website where progress, next steps, and answers to frequently asked questions are regularly published.
Different roles require different training content – from basic training for administrative staff to specialized workshops for key users.
Example:
In a retail company, warehouse staff receive practical training using real data sets to ensure they are confident in working with mobile scanners in the new ERP system.
Change management doesn’t end with the system launch. Only in everyday use does it become apparent where support or adjustments are still needed.
Example:
A pharmaceutical company offers daily “ERP consultation hours” during the first three months after go-live, where users can ask questions or describe problems.
Models in Change Management
Change management is not a product of chance. Numerous models offer structured approaches for successfully managing change. They help understand typical human reactions to change and plan targeted measures. Here is an overview of some of the most well-known models – including brief examples of how they can be applied in ERP projects.
1. Lewin's 3-Phase Model
Kurt Lewin, a pioneer of social psychology, developed a simple but still effective model with three phases back in the 1940s:
- Unfreeze: Old structures and behaviors are questioned.
- Change: New processes or systems are introduced.
- Refreeze: New processes are stabilized and anchored.
Example in the ERP context:
During ERP implementation, the first step is to communicate why the old system is no longer sufficient (unfreeze). This is followed by implementation with training and pilot phases (change). Finally, new processes are consolidated through clear rules, training, and support (freeze).
2. Kotter's 8-Step Model
John P. Kotter developed a model with eight sequential steps to implement lasting change:
- Create urgency
- Form a leadership coalition
- Develop vision and strategy
- Communicate vision
- Remove obstacles
- Achieve short-term successes
- Expand successes
- Embed change in the culture
Example in the ERP context:
Management demonstrates how outdated processes threaten competitiveness (urgency). An interdisciplinary ERP team is formed (coalition). Early training successes are celebrated and made visible (short-term successes).
3. ADKAR Model
The ADKAR model from Prosci® focuses on people. It describes five successive steps for individual change:
- Awareness (awareness of the need)
- Desire (desire to support the change)
- Knowledge (knowledge of how change works)
- Ability (ability to apply new skills)
- Reinforcement (reinforcement to ensure the change)
Example in the ERP context:
Employees understand why a new ERP is necessary (awareness). They want to contribute (desire). Training provides them with the necessary knowledge (knowledge). Exercises and coaching strengthen their application skills (ability). Regular successes are recognized (reinforcement).
4. Bridges' Model of Transition Phases
William Bridges distinguishes between change (what happens externally) and transition (what people experience internally). His model describes three phases:
- End/Farewell: Letting go of old structures
- Neutral Zone: Uncertainty, but also opportunities
- New Beginning: New things are accepted and integrated
Example in the ERP context:
Employees say goodbye to the familiar ERP system (end). During test phases, uncertainty about new processes prevails (neutral zone). After a successful go-live, the benefits become noticeable (new beginning).
5. Kübler-Ross Curve (Change Curve)
This well-known curve is originally based on grief research, but is also often used in change management. It describes the emotional phases people go through:
- Shock
- Denial
- Frustration
- Depression
- Acceptance
- Experimentation
- Integration
Example in the ERP context:
After the announcement of a new ERP system, some initially react with rejection (“We don’t need that!”). Later, frustration with the learning curve follows. With initial successes, acceptance grows until the system is used as a matter of course.
6. McKinsey 7-S Model
This model describes how successful change must affect seven areas of a company that are interlinked:
- Strategy
- Structure
- Systems
- Shared Values
- Skills
- Leadership Style
- Staff
Example in the ERP context:
When implementing ERP, not only the software is changed, but also responsibilities (structure), process rules (systems), and the corporate culture (shared values) are adapted. This is the only way to ensure lasting change.
Conclusion
These models provide valuable guidance, but no company should apply them in a “separate” way. The key is to tailor the right model—or a combination of them—to your culture, industry, and project size. Especially in complex ERP projects, professional change management can determine whether a new system will be a success—or an expensive dud.
Our Services
Initiation of a Change Project
- Interviews: We speak with managers and employees to identify moods, expectations, and potential resistance early on.
- Analysis: We carefully evaluate the information obtained, considering both hard facts and soft factors such as culture and communication.
- Derivation of Actions: Based on our analysis, we develop concrete, implementable steps that are individually tailored to your company.
- Development of a Change Structure: We establish clear responsibilities and roles so that change management does not remain abstract but is practiced in everyday life.
Change Management in Projects – Our Contribution to Project Success
- Regular communication: We ensure that all stakeholders remain informed – transparently, understandably, and appropriately for the target group. This builds trust and acceptance.
- Workshops and training: We conduct workshops to make changes tangible, clarify questions, and actively involve employees.
- Management support: Managers are key people in change. We support them in fulfilling their role in the change process safely and effectively.
- Early detection of resistance: We monitor the mood within the company and intervene before resistance becomes a project blocker.
- Adaptation of change measures: Change is not a rigid concept. We regularly review the effectiveness of our measures and adapt them as needed.
- Measurement of progress: We define measurable goals and ensure that successes are visible – this motivates and builds trust.
Your added value
- Large consulting firms are often very expensive – we offer an affordable alternative.
- We make professional change consulting possible even for small and medium-sized companies – our focus is clearly on the needs of SMEs.
- We work pragmatically rather than theoretically – solutions that really work, developed together with the client.
- For us, change management is not an end in itself: your project success always comes first.
- We are your companion and sparring partner.
Contact us if you are looking for change management that suits your company – efficient, affordable, and practical.
Phase model
Initiation
- Gain an overview of the company and change projects
- Get to know the company's culture and make it visible
- Set goals
- Understand the project vision and milestones
Analysis
- Interviews with managers and employees to identify sentiments, expectations, and potential resistance early on
- Evaluate the information gathered
- Identify stakeholders
Planning
- Define roles and responsibilities
- Integrate change activities into the project plan
- Agree on a change narrative
Implementation / Support
- Ensure clear and consistent communication
- Actively engage all involved employees
- Develop a shared vision and make it tangible
- Experience changes practically and implement them in stages
- Use change agents as multipliers
Monitoring
- Measure progress
- Regularly evaluate measures and adapt them flexibly
- Ensure and visualize successes and progress
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