1. Change Management for Cloud HCM Implementations
Author:
Julie Robert, Business & Change
Management Consultant
Version:
2016
EXECUTIVE SUMMARY
With the cloud making HCM solutions more accessible and flexible
than ever before, a broader range of organizations are engaging
and investing in new cloud-based HCM technologies.
There are many reasons to move to the cloud, including rapid
deployment, reduced support, improved flexibility, lower costs, as
well as simple, browser-based access for easy adoption. Cloud-based
solutions help organizations improve operations, achieve greater
business agility and adapt more rapidly to business needs that change
over time.
It is a fundamental question whether there is a need for Change
Management during cloud-based HCM implementations since cloud
technologies are simpler than their On-premise counterparts and
relatively easy to implement.
However, despite the lower costs and easy implementation, the
successful integration of new cloud-based solution into an organization
is a huge investment that you do not want to see fail. This is the primary
driver bringing Change Management into focus. After all, user adoption
is what drives the success of a new system deployment.
In this paper we will explore why Change Management is a critical
component for achieving successful cloud-based HCM implementation
and explore Change Management best practices.
CONTEXT
Cloud HCM Values & Benefits
There are many reasons to move to the cloud, including rapid
deployment, reduced support, improved flexibility, lower costs,
as well as others that may not be as obvious. The many benefits
of cloud-based HCM include:
WHITE PAPERA Rizing Company
CHANGE MANAGEMENT
FOR CLOUD HCM
IMPLEMENTATIONS

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»» Predictable and lower costs
»» Automatic updates
»» Reliability
»» Fast implementation (a typical implementation ranges from 4 weeks for the basic
platform to 6 months for core HR)
»» Simple, browser-based access with an intuitive interface you can customize easily
and a wide range of training offerings
»» Extensibility and scalability
»» Integration with all SAP applications
More and more organizations are investing in new cloud-based HCM technologies to support
their functional requirements and their workforces moving forward. This shift is precipitated
by the need to improve user experience, accomplish better integration of disparate existing
solutions, and gain crucial analytical insights into operations.
However, realizing the benefits of any ERP or cloud-based HCM solution requires that people
in the organization use that system to full advantage and embrace the changes created by
implementing a new system.
Why End-User Adoption Matters
Organizations often underestimate how much a new technology can change tasks, processes,
roles and structure within a company.
When implementing a new HCM solution it is likely that some existing processes and employee
roles will necessarily change. For example, when implementing a new Talent Management
solution, existing Talent Management and/or transactional HR processes would likely be
redesigned, simplified and aligned with industry best practices to improve the efficiency of
the overall HR function.
Because the process changes can be significant, it is essential that employees receive proper
training to enable them to use the system to its greatest advantage. In a worst-case scenario,
poorly trained users may enter data incorrectly, which could create further problems as the
HCM solution data flows across departmental boundaries.
For this reason, it is important to encourage and facilitate a high level of user adoption when
implementing a new HCM solution (or any enterprise solution for that matter). A strong
approach to Change Management can help people in the organization learn and adapt to the
new system, new roles, processes and responsibilities. It will also drive end-user engagement
and help users transition smoothly to the new system.
The Benefits of Change Management
Change Management is critical to the success of an HCM implementation and a necessary
link to gain the potential efficiencies and benefits from the new system. It will drive end-users
engagement and help users transition smoothly to the new system.
Moreover, studies have shown that projects with effective Change Management programs
are more likely to meet objectives, stay on schedule and on budget.
PROSCI
“Projects with effective Change Management programs were more likely to meet objectives,
stay on schedule and stay on budget than those without effective Change Management.”
(Prosci, 2014)
Software does not
deliver benefits
or performance
improvements,
people do.

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With a strong Change Management approach, you will be able to achieve the following benefits:
Business
Readiness
Changes are defined and impacts understood, and the business
is prepared for the changes.
Satisfaction Stakeholders are satisfied with communication, engagement
opportunities, training and support.
Engagement Leaders are engaged and fulfill their role in achieving business
readiness. The right stakeholders are engaged throughout the
project lifecycle. Impacted stakeholders are engaged by attending
meetings and participating in a constructive manner.
Commitment
& End-User
Adoption
Stakeholders are receptive to the change, understand the vision
and how they will be impacted. Stakeholders feel equipped
and supported to use the new processes and tools. Barriers
to sustainment are identified and addressed.
By ensuring that users are qualified and motivated to use the new system and helping people
in the organization successfully navigate new business processes and other operating changes,
the transition from the old system to the new one will be simplified and business goals and HCM
implementation benefits will be more achievable.
CHANGE MANAGEMENT APPROACH & BEST PRACTICES
What is Change Management?
Change Management is the process, tools and techniques used to manage the people-side of
change to achieve the required business outcome. It incorporates the organizational tools that
can be utilized to help individuals make successful personal transitions resulting in the adoption
and realization of change.
Ensure that users
have the knowledge
and ability to use
the new systems.
Realize the benefits
and efficiencies of
the system.
Help people in the
organization successfully
navigate new business
processes and other
operating changes.
DRIVE STAKEHOLDER ADOPTION,
UTILIZATION AND PROFICIENCY
IN NEW SYSTEMS AND PROCESSES

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Any change to processes, systems, organization structures and/or job roles will have a
“technical” side and a “people” side that must be managed. Project Management and Change
Management provide both the structure and the tools to realize the change successfully from
both a technical and a ‘people’ perspective.
The project change triangle below demonstrates the linkages between leadership/sponsorship,
Change Management and Project Management. For a project to succeed, each of these areas
must be managed effectively.
Change Management Approach
A “one-size fits all” approach to change management will not achieve optimal organizational
change, as each organization is different with its own structure, history, culture and needs. The
characteristics of each change also influence the way change is planned and effectively managed.
That being said, most approaches to change management share some common elements
for driving higher levels of employee adoption and usage of a solution. In particular, certain
elements contribute to a successful change: first, explaining the need for change, then teaching
users about the new processes, and finally reinforcing the learning to embed changes in culture
and daily routine.
The general guidelines for an effective Change Management process in the Change
Management Framework for Program and Project Management are:
Formulate
the change
By identifying and clarifying the need for change, assessing readiness
for change, and defining the scope of change.
Plan the
change
By defining the change approach and planning stakeholder engagement
as well as transition and integration with business operations.
Implement
the change
By preparing the organization for change, mobilizing the stakeholders,
and delivering project outputs.
Manage
the change
By transitioning the outputs into business operations, measuring
the adoption rate and the change outcomes and benefits, and adjusting
the plan to address discrepancies.
Sustaining
the change
On an ongoing basis through communications, consultation,
and representation of the stakeholders.
Projects
meet objectives
Projects finish
on time and on budget
Return on investment
(ROI) realized
Governance
Strategy
Direction
“People” side
of Change
“Technical” side
of Change
Prosci® PCT
TM
Model
Project
Management
Change
Management
Leadership/
Sponsorship

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It is important to note that the Change Management Framework is an iterative process where
adaptive change occurs on a continual basis in response to evolving circumstances.
Here is an example of typical Change Management activities and deliverables during a HCM
Cloud Implementation project:
Change Management Best Practices
The seven greatest contributors to a successful Change Management program with a focus
on user adoption and usage are:
Drive
employee adoption
and usage
Stakeholder
Engagement
Communications
Change Management
Resources
Integration with
Project Management
Change Management
Approach
Sponsorship
PREPARE REALIZE VERIFY LLAAUUNNCCHH
FORMULATE
THE CHANGE
PLAN
CHANGE
IMPLEMENT
CHANGE
MANAGE
CHANGE
Design
Develop
Deliver
Embrace
Adopt
Use
DESIGN
SUSTAIN CHANGE
» High level Change
Management
assessment
» Stakeholder
Engagement Plan
» Initial communication
plan and training
Strategies
» Prepare Sponsors
» Develop CM Strategy
» Detailed Stakeholder
Impact Assessment
» Training, Communication,
Stakeholder enggement
and Support strategies
» Update all plans
» Execute Plans
» Input to project
sustainment plan
» Training Materials
and delivery
» Lessons learned
» Final CM
Evaluation Report
» Adjust plan
to address
discrepancies
» Ongoing Communication, consultation and representation
of stakeholders

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Active and visible executive sponsorship
Employees look to and listen to senior leaders for direction and commitment. Active and visible
participation of sponsors in support of change is the number one predictor of success for a
Change Management program.
Frequent and open communication about the change and the need for change
Communication is a key contributor to success in any project. Communications catalyze
the required individual transitions by answering questions employees have:
Why are we doing this? What’s in it for me?
Why now? How am I impacted?
What if we are not changing?
Effective communication is consistent, open and honest, targeted at the specific recipient
and delivered through a variety of media.
Employee engagement and participation
Engagement and participation increase the likelihood of successful transitions. Engagement
with and support from middle management is also critical to the success of a project, as middle
managers are the closest to where the change comes to life. It is important to engage managers
and supervisors so they can effectively engage their direct reports.
Structured Change Management approach
To get sufficient Adoption and Usage, you must apply structure and intent to your Change
Management approach. Organization and planning contribute to the success of a project,
including the use of a methodology or specific plan, initiation of Change Management
activities early in the project, a systematic approach to the change and the anticipation
of specific resistance.
Dedicated Change Management resources and funding
Dedicated Change Management resources and budget are essential to drive usage and adoption
The greatest advantages of having a dedicated Change Management Resource are improved
focus on change management and having a single point of contact with clear responsibility
and accountability.
Engagement and Integration with Project Management
An integrated approach between the technical and people aspects of a project delivers results.
TECHNICAL SIDE
PEOPLE SIDE
Current Transition Future
Design | Develop | Deliver
Embrace | Adopt | Use
1“No change is
possible without
leaders being
on board.”
2
“The Right
communication
to the Right
stakeholder
at the Right
time during
the project.”
3Employees
are the ones
who have to
ultimately “adopt
and use” the
solution.
4Proactive
approach with
a focus on
“Adoption and
usage” from
the beginning.
5
“If it’s not
someone’s job,
it’s no one’s job.”
6

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FOR MORE INFORMATION:
514-907-2505 | info@n-spro.com www.n-spro.com
CONCLUSION
More and more organizations are investing in new cloud-based HCM technologies to support
their functional requirements and their workforces moving forward. This shift is precipitated
by the need to improve user experience, accomplish better integration of disparate existing
solutions, and gain crucial analytical insights into operations.
However, implementing a new software solution is never trivial. Studies have shown that 60%
of IT implementation projects fail due to human aspects and Change Management factors
such as increased costs/time and benefits not met due to poor end-user adoption.
How a company prepares for change matters. Any technology change (whether a corporate
wide HCM implementation, or a significant upgrade to an HR application) will affect those
who need to “touch” the software, even if it is only once in a while. The benefits and business
goals of a new solution can only be realized if the people in the organization are qualified and
motivated to use the new system, and use that system to its full advantage.
For these reasons, Change Management is critical to the success of any cloud HCM
implementation and is a necessary link to gain the efficiencies and benefits from the new
system. By maintaining a focus on the change process, as well as the technology during project
implementation, an organization will be more likely to meet their expectations and have a
successful implementation.
BIBLIOGRAPHY
Managing Change in Organizations: A practice Guide – PMI
Prosci (2012). Best Practices in Change Management (2012 Edition)
Bersin – Deploying HCM Technologies – Making Change Work – June 2014
Bersin – Predictions for 2015 – Redesigning the Organization for a Rapidly Changing World
Change Management and Adoption for Cloud ERP – Michael Kirsgman February 2012
Fearless Change Management in Strategic IT Implementation – /N SPRO
ABOUT /N SPRO
/N SPRO is a leading SAP implementation and resell partner with the second largest
SuccessFactors practice in North America. We specialize in all aspects of SAP SuccessFactors
Cloud HCM, from business planning to implementation, integration, customization and
sustainment services. Customer success, innovation and dedication to excellenceare at the core
of our practices. Using deep product knowledge, industry best practices and extensive quality
assurance, we are committed to ensuring the success of our clients.