The crucial role of change management

Human Capital Management (HCM) systems are the backbone of any modern organisation. They streamline HR processes, improve data management, and empower employees. However, simply deploying a new HCM system isn’t enough to guarantee success. Often overlooked, effective change management is the critical factor that unlocks the full potential of the investment, writes Rob Behennah from Dayforce.

Today’s HCM systems offer industries as a diverse as retail, aged care and manufacturing a vast array of functionalities, from onboarding and learning management to workforce analytics. However, without proper user adoption, these features remain underutilised.

Experience shows that successful HCM implementations share one key element: a robust change management strategy implemented before, during, and after the technology launch.

Change management bridges the gap, ensuring employees understand the value proposition and actively engage with the new system. Imagine a situation where a company implements a state-of-the-art HCM system, however employees continue relying on outdated spreadsheets due to a lack of training and unclear communication about the benefits of the new system.

This is a classic example of where a robust change management strategy could have ensured user adoption and maximised the return on investment (ROI) for the HCM system.

The pillars of change management

Effective change management – and therefore the successful deployment of a new HCM system – rests on four key pillars.

The first is clearly identifying areas for improvement. Current state process mapping helps pinpoint pain points and opportunities for optimisation. Techniques like ‘swim lane’ diagrams and layered flowcharts can be used to visualise existing workflows.

The second pillar is having the vision to reconfigure current processes into a future state. Leverage the capabilities of the chosen HCM system to create a clear picture of how work will be done in the future. This vision can be developed through facilitated brainstorming sessions involving stakeholders from different departments.

Next, it is important to develop a communication plan that clearly outlines the HCM changes and timelines. This plan should target stakeholders, managers, and employees, emphasising the benefits for the organisation and individual users. Communication should be clear, concise, and consistent throughout the implementation process.

The fourth pillar involves evaluating the success of the change management process. Conduct a post-implementation review to identify areas for improvement, and analyse project goals, timelines, and user feedback to gain valuable insights for future changes. The review process should not be a blame game but rather an opportunity to learn and adapt.

An effective HCM implementation requires an integral focus on change, people skills and commitment

Steps to ensure an effective HCM implementation

Beyond change management, there are four key elements that together contribute to a successful HCM implementation. They are:

1. Having clear objectives and strategies
It’s important to define specific goals and objectives to measure a project’s ROI. A well-defined strategy, aligned with the chosen HCM system, ensures the platform supports the organisation’s path to success. Take time to identify specific needs and challenges and align HCM goals with overall business strategy to maximise the system’s impact.

2. Securing top-down support
Executive sponsorship is critical as leaders who champion the HCM system set a positive cultural tone and encourage user engagement. Communicating a long-term vision allows executives to allocate resources effectively and fosters employee buy-in. Leaders who actively promote the HCM system send a clear message that the organisation is investing in its people and their success.

3. Communicating the benefits
A successful change management plan hinges on clear communication. Employees need to understand the system’s benefits and how it enhances their work experience. Regular assessments, ongoing training, and feedback mechanisms ensure continued user engagement and sustain success. Employees who understand the ‘why’ behind the change are more likely to embrace the new system.

4. Achieving cross-functional collaboration
A cross-functional team is essential for optimising an HCM investment. As organisations evolve, HCM systems need to adapt and having a team representing different departments ensures a holistic view of the workforce and user experience. Collaboration fosters innovation and ensures seamless integration across functions as HCM systems are not solely for the HR department.

The road to HCM success

By prioritising change management and implementing these practical steps, organisations can unlock the full potential of their HCM systems. Indeed, Orica recently successfully completed the first phase of global Dayforce implementation in 13 countries in less than 12 months. It’s important to remember that an HCM system is a powerful tool, however it’s the people who make it work.

Working with implementation partners Deloitte and Think Best Practice, Orica’s single data architecture consolidates disparate systems around the world to deliver a complete cloud HCM experience for its global workforce.

Effective change management empowers a workforce to embrace the new system, driving success and propelling their organisation forward. It’s important to think of change management as the bridge between technology and human capital. By effectively managing this bridge, it’s possible to ensure a smooth transition, maximise user adoption, and ultimately achieve a positive ROI.

In today’s competitive landscape, attracting and retaining top talent is paramount, and HCM systems play a critical role in achieving this goal. However, simply deploying a new HCM system is not enough.

To unlock its true potential, an organisation must prioritise effective change management. By understanding the need for this and implementing a phased approach focusing on the four pillars of awareness, vision, articulation, and review, organisations can ensure a successful HCM implementation and reap the long-term benefits of a truly engaged workforce.

About the author: Rob Behennah is Senior Vice President of Customer Experience for Asia Pacific and Japan at Dayforce.