MANAGING CHANGE - why it is so difficult sometimes when it can be easy

Just last week, we organized a short 90 minutes briefing seminar for all our suppliers.

The reason for this session is to do a thoroughly briefing to them about the implementation of  bar code system in our supply chain operation. It is a straight forward request to all supplier to print a bar code label on all packaging ordered by our procurement department.

Before going to the result of the meeting proper, let me go back to the beginning of this project

Background

18 months earlier, our CEO commented that the supply chain process need to be streamline to reflect overall group practices. Our Europe facility and North Africa facility already started with the program, whereby, all movement of material internally and externally are monitored through barcoding system.

All receiving , delivery and internal movement are scanned to be updated into the ERP system immediately.

This simple project should not have any resistance in the first place either internally or with suppliers as bar coding system has been in existent since Bernard Silver created the first bar code program in 1949 and patented in 1952.

Internal Resistant

However, the first sign of objection came as the IT and Procurement team felt that, even though this system is good for implementation, there were various issue on hand.

The reason given were as following:-

a) No supporting structure in place in term of software support and logistical issue
b) Lack of trained personnel on the operation level to handle the system
c) Information were scattered and many missing link on how to go about it
d) Suppliers readiness to implement has not been investigated
e) Current ERP system is not geared to support a efficient bar coding system
f) Warehousing team gave negative comment on the project as they preferred the current manual system of receiving material and later updated into the system once total receiving completed

 Managing the Change

 The end result was, I was left with little option but to brain storming it, initially with myself and later with my IT Manager who is personally convinced this is a way to go forward, i.e. both of us felt this change is necessary.

We conclude the following issue which made the change process difficult;

a) Request for information from the senior management not deliver promptly and accurately.


To effect change, the support must come right from the top to ensure all information required are provided. When this does not happen or if there is a delay in conveying, this will disrupt the process of change.


b) Failure to communicate accurately

The next issue we realize was that, when information finally flow down to the team who need to powered the change effect, the information was scattered and inaccurately given. This lead the local manager involve been given wrong instruction or data to proceed and when this result in failure, the change cycle was braked to a halt.

c) Failure to Convince it will work &  not getting really involve

Apparently, when the European sector and North Africa sector implemented the system, they were facing a number of technical issue. To solve this issue, upgrade work was needed or a new ERP system were needed to ensure these will work in the long run.

By not been convincing by itself on the system, change will not work. When a leader ask for change, the leader himself must experienced the change effect. They have to believe into the change itself and get involve.

d) Did not research into Impact of Change

For change to be effective, the ability to evaluate current status quo of operation and personnel behavior and the change in operation and personnel behavior needed to ensure the change will be met with no or little resistant.

e) Lack of  Correct Information and Training

When we have all the negative response from (a) to (d) , then this directly translated to a mismanagement situation.

When the action from (a) to (e) was reversed, with change in behavior from the top the internal resistant to manage the project disappear gradually. The IT department with the correct information managed to nailed down the right process.


With the new development giving the positive feeling to the team, the procurement department begin to inform all the supplier and in clear step by step information how to implement the bar coding system.

The result from this 1st phase of informing, resulted in suppliers with a good integrated management system, almost immediately managed to fulfill our request. These suppliers are earlier, do not understand how we want to proceed with the system and their inquiries to us was not able to be addressed correctly or effectively.

Those which does not have a system in place to print bar code label internally, are requested to source for a suitable system to allow such application in place.

However, to made the change effect more pronouncing, we decided that we should call all suppliers for a briefing session. Made no mistake about why we decided on this major briefing. There is no reason to fear, suppliers will not co operate with us on this matter. The key reason why we have a briefing were;

 a) For change to be effective internally or externally, communication is the key to deliver the objective of those change.
b) Even though most supplier will understand why this is required, a message still needed to be sent out to these stakeholder.
c) Need to outline clearly the procedure, even though communication has been made via emails, the session allow suppliers to interact with us and get good rapport to ensure the change is manage smoothly.

This session resulted in better understanding and overall, all of them understood why this is required.