(Ed. Note: Mark Gavora is MiPro Consulting’s Change Management Lead.)
Throughout my experience integrating technology, transforming businesses and managing organizational change, I have 
noticed recurring risks. While these risks make themselves known across all types of transformations, they are particularly salient in transformations driven by implementing new technology. As such, managing these risks is particularly important for SaaS implementations given the nature of the new and innovative solutions (such as Workday) that promise to enable organizations to better leverage applications.
At the core of these risks lies what I call the “Silver Bullet” mentality: that the SaaS platform, in and of itself, will make the organization better. The phenomenon is all the more interesting in that, when asked, leadership quickly acknowledges that SaaS can only improve the organization to the extent the technology is effectively leveraged.
That’s an important realization. And one that’s not often talked about. And it’s dead true.
So, to assure strategic success, the arcane art of change management has long been touted as essential; however, history reflects that change management rarely happens until unexpected problems occur as a result of diffusing technology throughout the organization. Additionally, the definition of change management varies between experts. While there are a number of real-world SaaS problem areas, this discussion shall focus on four – two right now, and two in my next post.
Problem #1 – Perchance to dream!
(Meaning: Investing in an innovation because there is a perceived — but not documented — clear understanding of value aligned with corporate strategy.)
Too often decisions are made because “it’s a no-brainer”. It goes something like this: leadership is considering a solution, and the vendor offers a deal they just cannot refuse. Alternatively, several events combine to afford a “window of opportunity” to acquire a new technology and leadership jumps before the window has a chance to slip away.
These impulsive decisions have immediate merit — an opportunity was leveraged. However, the focus too quickly shifts to implementation with minimal ad hoc planning. Soon problems emerge. Leadership has trouble reaching consensus on the need for the solution. Alignment with the corporate strategy is not as clear as it could be. Key partnering departments, already burdened with too much work, are less than excited to have more dropped on them. The initiative stumbles as it starts. Finger-pointing ensues. The project fails. The technology is labeled a non-starter unto itself.
The search for “better” innovation continues.
Problem #2 – If we implement it, good things will come!
(Meaning: Focusing on automation without addressing efficiency and effectiveness.)
Perhaps a new executive wants to make an impact and sees SaaS as the way to proceed, or a project under a tight timeline has some unexpected delays early on and the team makes up for lost time. Regardless of the reason, efforts once again focus on getting the system up and running – and not much else.
Subject matter experts are all too often eager to focus on their “real jobs” and opt for the solution that mimics how they do business today. The team makes up for lost time and completes the project on time and within budget, resulting in celebrations and rewards. Unfortunately, the excitement around the project comes to a quick halt when the assessments come back and the company learns they spent a lot of money for very little – or perhaps no — impact. Consultants have come across this scenario so often that they created a colloquial equation to account for the phenomenon: OO+NT=EOO or Old Organization + New Technology = Expensive Old Organization.
In my next post, I will cover the next two major areas of problems/misconceptions. Stay tuned. Meanwhile, if you have any questions, comments, or would like to discuss a project at your organization, I’d love to hear from you.
Related posts:
The “Effortless” SaaS Implementation Ideal
SaaS Booming in Enterprise Market
CIOs Say ERP Systems Considerably Underutilized
What Workday’s Cash Infusion Means in Today’s Markets
Workday Named #1 Best Place to Work in Bay Area
Big Hit: Workday Raises $75M in New Funding
How Economic Chaos Can Mean Opportunity for Smart, Daring Firms
Field Notes: Dave Duffield and Aneel Bhusri Kick-Off Workday Rising ‘08
Workday: Dave Duffield 2.0 Gaining Steam
Salesforce.com and Where SaaS Goes From Here (Eventually)
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