With either cost reduction or competitive pressures taking a primary position in your organisation, you will know that if you are not moving forward, then you are falling behind. For this reason, it is important to continuously adapt to stay relevant and achieve your strategic goals.
If you play a role in this ongoing transformation process within your business, you will usually find yourself tasked with overseeing high-risk and complex transformation projects aimed at improving your organisation. With the inherent uncertainty and risk associated with such projects, it would not be uncommon for members of your team to feel worried and overwhelmed from time to time. The challenging nature of such projects and the significant ramifications of even the smallest of errors can weigh heavily on some people’s shoulders.
When we refer to a complex, high-risk transformation project, it can be anything from a hard FM service covering many buildings and fittings, construction of a leisure centre, development and design of regional highways and street lighting, through to an enterprise resource planning (ERP) implementation, as the outcome of such a project can positively or negatively transform the way an organisation operates. It also often comes with a number of non-technical, organisational challenges that can impact the success of the project and, ultimately, the well-being of your team.
How to Lead Complex Transformation Projects
This article outlines the specific organisational challenges that often arise during the implementation of a complex business project. While the key principles apply across the board, we have used the example below aligned to a complex ERP implementation. It has the potential to positively (or negatively) impact your organisational transformation. We identify how you can support your teams to overcome potential challenges, bringing them enthusiastically along with you on the journey through that transformation.
In running with the example of an ERP system implementation, while the success of such a project will see the positive transformation of an organisation’s operational efficiency and overall competitiveness, it also requires those working on it to carefully navigate the inherent complexities of such a large-scale project.
The following sections delve into some of the most common organisational hurdles you and your team are likely to face, exploring their underlying causes and the ways in which they can impede progress.
- Inadequate Change Management: An ERP implementation often involves significant changes to existing processes, roles and responsibilities. Inadequate change management support can result in team resistance and difficulties in adapting to the new system.
- Insufficient Stakeholder Alignment: A lack of alignment among key stakeholders, such as executives, department heads and end-users, can lead to conflicting priorities, unclear expectations and a lack of support for the project.
- Unrealistic Expectations: Overestimating the benefits or underestimating the challenges of an ERP implementation can result in unrealistic expectations, leading to disappointment and frustration when the project does not deliver as anticipated.
- Poor Project Governance: A lack of clear project governance can lead to confusion about roles, responsibilities, decision-making and reporting structures, hindering the project’s progress.
Such projects face a myriad of challenges that extend beyond their technical aspects. These difficulties can have far-reaching consequences, impacting a wide variety of areas within the organisation and affecting its overall success. The following sections explore the organisational impacts that can arise due to these challenges, highlighting their significance and the importance of addressing them effectively.
- Employee Morale and Productivity: Organisational changes can lead to increased stress, reduced morale and decreased productivity among your team members. This may result in higher turnover rates and a negative work environment.
- Operational Disruptions: If employees struggle to adapt to the new ERP system there are likely to be disruptions in daily operations, which can affect customer service, supply chain management, and other critical business functions.
- Financial Implications: Organisational problems often cause delays, scope creep and, at worst, project failure, leading to increased costs and likely financial losses for the organisation.
- Damage to Reputation: A poorly executed ERP implementation can harm both your own and your organisation’s reputation, both internally and externally, making it difficult to attract and retain top talent and adversely impacting your clients and customers.
Management Support for Your Team
By adopting a proactive approach, you can address potential issues and ensure a successful outcome for the project, as well as protecting the well-being of your team. The following strategies highlight the essential actions that may already be on your radar to undertake to effectively navigate the intricacies of an ERP implementation, while fostering a positive working environment.
- Establish a Robust Change Management Plan: Develop a comprehensive change management strategy that includes clear communication, training and support for your team as they adapt to the new ERP system.
- Align Stakeholders: Hold regular meetings with key stakeholders to ensure alignment on project objectives, timelines and expectations. Encourage open communication and address any concerns or issues as they arise.
- Set Realistic Expectations: Clearly communicate the expected benefits, challenges and timelines of the ERP implementation. Be transparent about potential obstacles and the steps being taken to address them.
- Implement Strong Project Governance: Establish a clear project governance structure that outlines roles, responsibilities, decision-making and reporting processes. This will provide a solid foundation for project execution and accountability.
- Monitor and Address Employee Well-Being: Regularly check in with your team to assess their well-being and address any concerns they may have. Offer additional support, such as flexible work arrangements or stress management resources, to help them cope with the challenges associated with the ERP implementation.
Organisational challenges in complex, high-risk projects like ERP implementation can have a significant impact on both your team’s well-being and the overall success of the project. By identifying these problems and taking proactive steps to address them, you can support your team and ensure a smoother, more successful ERP implementation that delivers the desired benefits to your organisation.
Leading Complex Transformation Projects: How Do We Approach the Specifics?
The following points provide a comprehensive guide to help your teams navigate complex projects while maintaining productivity and enthusiasm. We explore the specific steps you can take, why these steps are important, and the most effective ways to communicate them to your team.
- Involve Your Team in the Planning Process
Involving your team in the planning and decision-making process from the onset is crucial for several reasons. First, it helps them understand the rationale behind the changes, which can alleviate some of their concerns. Second, it gives them a sense of ownership and responsibility, which can improve their commitment to the success of the project. Finally, involving your team allows them to provide valuable feedback and potential solutions to challenges that may arise, driving innovation and a collaborative approach within the team.
The best way to involve them is to hold open face-to-face discussions, allowing for candid exchanges of ideas, concerns and suggestions. By creating an inclusive environment where everyone feels heard, you set the stage for a more successful project.
- Communicate Openly and Transparently
Clear and consistent communication is essential for managing change effectively. Open and transparent communication not only helps to allay fears and concerns, but also keeps everyone informed and on the same page. To establish an effective communication plan, consider the following strategies:
- Develop a comprehensive communication strategy that outlines the project’s goals, timelines and key milestones.
- Share regular updates on progress, including any changes to the plan.
- Create a dedicated communication channel for the project, such as an email distribution list or a chat platform.
- Encourage open and honest dialogue among your team, ensuring that their concerns and suggestions are heard and addressed.
- Schedule regular team meetings to maintain transparency and keep everyone in the loop.
- Provide Training and Support
To ensure that your team can adapt to the changes the project will create so they are best able to succeed in their new roles, it is crucial to give them all the necessary training and support. This may involve offering workshops, online courses, or hands-on training sessions to help them develop the skills they need to excel in the changing environment. Additionally, consider providing resources like mentorship programmes, reference materials and opportunities for professional development.
- Manage Resistance
Resistance to change is natural and it is essential to anticipate and address it proactively. To effectively manage resistance, what we find works most successfully is to:
- Identify the root causes of resistance by engaging in open dialogue with team members who may be struggling with the change.
- Address their concerns and work together to find solutions to overcome any obstacles in the change process.
- Offer additional support to team members who may need more time or resources to adapt.
- Share success stories and examples of how the changes have benefited other individuals or teams to help build confidence in the project’s value.
- Celebrate Successes
Recognising and celebrating successes, both big and small, can go a long way to maintaining your team’s motivation and engagement. By highlighting accomplishments and progress, you build momentum and foster a positive, enthusiastic atmosphere. Some ways to celebrate successes include:
- Publicly acknowledging individual and team achievements in meetings or through company-wide announcements.
- Organising team-building events or celebrations to recognise milestones and hard work.
- Implementing a rewards or recognition programme to show appreciation for outstanding contributions.
- Address Work-Life Balance Concerns
Team members may worry about the impact a complex transformation project might have on their life outside of work. For example, will they be required to work excessive hours, or will they be ‘thrown in the deep end’ and have to catch up when the workday of most others has finished?
To help your team to find the time within the framework of their normal day jobs to handle the demands of a complex project, what we find most effective is to:
a. Prioritise and Delegate: Collaborate with your team to identify their most important tasks and prioritise them accordingly. Delegating responsibilities where appropriate can ensure that everyone can focus on their core tasks while contributing to the success of the project.
b. Provide Resources and Support: Equip your team with the necessary resources and support to succeed in their roles. This may include hiring additional team members, investing in new technology, or providing specialised training.
c. Adjust Workloads: Monitor your team’s workload and make adjustments as needed to prevent burnout. Ensure that they can manage their day-to-day responsibilities while also contributing to the success of the complex project.
d. Encourage Teamwork and Collaboration: Foster a culture of teamwork and collaboration as this can help distribute the workload and reduce the burden on individuals. Encourage your team to share their knowledge, skills and best practices with one another.
e. Monitor Progress: Regularly assess both progress on the project and your team’s day-to-day work. Track performance metrics and make adjustments as needed to ensure that everyone stays on track and the project remains successful.
If you are a leader in this process, it is your responsibility to guide your team through the challenges and uncertainties of a complex transformation project. By involving your team in the planning process, communicating openly and transparently, providing training and support, managing resistance, celebrating successes and addressing work-life balance concerns, you can create an environment in which your team can thrive and contribute to the successful implementation of high-risk and complex projects.
In communicating these steps to your team, it is important to be transparent and honest about the challenges ahead and the support that will be provided to help them balance their workload. This will help to allay any concerns and give your team confidence that they will be able to succeed. Regular check-ins throughout the change process can help gauge whether your team are getting enthusiastic about the changes and allow for any necessary course correction if they are not.
By adopting these strategies, you can lead your organisation through a successful business transformation and ensure that your team remains engaged and enthusiastic throughout the process.