Saturday, June 28, 2008

Change management for Enterprise Applications

Change, in all its many aspects, is a critical aspect of the Enterprise Applications(EA) process. Organizations will increase their chances for EA success if they view enterprise applications as change agents, and adopt formal organizational change management strategies.

For many enterprises, the EA process effort casts a powerful spotlight on the inadequacies of their legacy systems and processes. It becomes a catalyst for contentious debate about the need for profound changes in business strategy, organization structures, processes and budgets. Enterprise architects must step up to the challenge of managing change proactively or risk being undercut by the fear it can spawn.

Organizational change faces two high hurdles. First, only a limited number of individuals are capable of the abstract thinking required to imagine the shape and dynamics of a new enterprise application. Second, organizations are rarely able to marshal and coordinate the critical mass of tools, control mechanisms and incentives needed to refine actionable behavior from the raw, unfocused pressure to change.

Formal organizational change management efforts will minimize business risk and enhance financial returns for EA and systems designed within that framework. Organizations that couple change management with the EA process will avoid confusion, sidestep fear, reduce frustration and prevent implementation errors. Firms that fail to see architects as change agents will waste their investments in enterprise application.

Gartner research indicates that only 35% of organizations with architecture efforts under way have adopted formal change management. It believes that 40% of architecturally active organizations will adopt formal change management mechanisms by 2010.

Change management entails thoughtful planning and sensitive implementation, and above all, consultation with, and involvement of, the people affected by the changes. Normally, if you force change on people, problems arise. Formal organizational change management strategies include models, tools, control mechanisms and incentives — to channel the activities of business and technical professionals toward the creation of a unified EA.

Five elements must be present for EA change to occur: vision, talent, incentives, investment and implementation plans. The effect of these elements is cumulative — if any piece of the puzzle is missing, the change initiative will suffer

EA planners need to adopt a straightforward change management approach, use it to diagnose problems, and train all managers and employees in its use. Moreover, to remain relevant and problem-focused, EA efforts should focus on the most profound changes that will affect the enterprise's fate. Risk management strategies should address change dynamics — such as the total cost of change and the opportunity costs of delayed change — as part of their analysis.

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