Note: Today's post is part of an ongoing series that looks at various pitfalls in finance transformation and what can be done to avoid them.

All to often, a transformation effort focuses on the process and forgets about the humans.  This is particularly true when a transformation effort is accompanied by an ERP implementation or upgrade.  The engagement team is so focused on the successful go-live of the technology they forget that people are needed to make those processes work effectively.  The most successful engagements focus on not only the technology, but also the people.

My experience indicates that change mangement is an area that is often diminished in the planning and budgeting phase of a tranformation effort.  Typically, executives have sticker shock over the cost of a transformation engagement, particulary where this is a large technology component, that they start looking for ways to cut the budget.  And unfortunately, Change Management is typically one of those areas that gets cut first.

This is a mistake.  Without effective Change Management, the risk that a transformation initiative will fail to live up to expectations is high.  In any large transformation effort, a number of people both inside and outside of the organization will be impacted.  Without proper Change Management, these individuals either won't know how to modify their behavior or they won't care.  An effective Change Management program will clearly lay out the behavioral implications of transformation and provide the support mechanisms to understand required behavioral change and the tools to support that change.  This includes, at a minimum, effective communication and training plans.

When companies invest properly in Change Management, they achieve greater results from their transformation initiative and the required behavioral changes stay embedded in the organizational culture.  When this happens, true transformation occurs.