Key considerations when undertaking change management Key considerations when undertaking change management

Key considerations when undertaking change management
23 Jul 2018

Change is inevitable in all organisations these days, not least due to advances in technology. But when it comes to introducing change of any magnitude such as moving from multiple in-country payroll systems to a single global approach, a change management strategy becomes necessary to navigate it effectively.

This is because, according to Gartner’s 2017 Market Guide for Multicountry Payroll Solutions, the complexities involved in delivering payroll to multiple countries are significant. Considerations here range from needing to tackle tax implications, local legislation and regulations to having to deal with various time zones, processes, currencies and languages.

The triggers for multinational companies wanting to go down this route are generally based on three factors:

  1. Merger and acquisition;
  2. Corporate growth and global expansion;
  3. Increasingly strict security standards.

Other drivers include a desire to boost operational efficiency, reduce the number of administrative headaches and make it easier to access payroll information at a global level. 

Meanwhile, in order to ensure your initiative is successful, it makes sense to plan for change in a strategic sense. Doing so tends to lead to better employee buy-in, which in turn means you are more likely to achieve your objectives.

It is also worth bearing in mind that each organisation has its own unique culture and subcultures, policies and procedures, operational requirements and challenges.

These complexities mean it is important to include everyone in the discussions right from the start, while being sure to keep them focused on the bigger picture and the likely impact of change on the wider organisation. To ensure they remain engaged though, offer them plenty of opportunities to buy-in, for example, by showing them software demos and sharing supplemental resources such as informational literature.

Here are some additional change management tips for companies embarking on major organisational shifts:

  • Be purposeful to ensure a smooth transition: Ensure you have strong and effective executive sponsorship behind the initiative. Understand how it will affect the employees involved and try to find ways to build their enthusiasm for the project. Cultivate positive relationships with third party vendors and partners to ensure it runs smoothly. 
  • Ask staff five basic questions before starting the initiative:
  1. Do you understand why change is being introduced?
  2. Do you get what is in it for you?
  3. What knowledge or information do you require to help you deal with the proposed change?
  4. Are you willing and able to promote the proposed change?
  5. Do you have the necessary tools in place to do your job once the changes have been implemented? 
  • Create a diverse taskforce for change: To encourage engagement in the project, it is vital to communicate clearly, openly and transparently from day one. Enlist employees to clarify what ‘going from good to better’ looks like to them and create space for people to ask questions. Include both change champions and the ‘nay-sayers’. 
  • Manage risk proactively: The most common risks include lack of employee co-operation or adoption, key individuals leaving and a failure to meet objectives. Global companies also need to bear factors in mind such as language barriers, cultural differences and local laws that can vary widely from country to country. 

Here are these seven additional considerations to include in your change management plan:

  1. A roadmap for sponsors;
  2. Stakeholder management;
  3. Communications;
  4. Management coaching;
  5. Resistance management;
  6. Training;
  7. Metrics

Conclusion

When it comes to adopting a global approach to payroll, it is generally all about using standardised approaches, systems and reporting as well as undertaking lots of communication and training. But the most important success factor of all is to involve employees in any change decisions, ensuring all affected regions are represented and co-opting key stakeholders who have ‘skin in the game’.

Lee-ann Kilroy

Lee-ann Kilroy is solutions support director at global payroll services provider, iiPay. She joined the company from a UK top 40 accountancy firm and has held key leadership roles in its operations, implementation and project management teams. Lee-ann works alongside the company’s enterprise team to provide custom solutions for all accounts.

 

 OTHER ARTICLES THAT MAY INTEREST YOU

 The importance of change management in global payroll initiatives

Making the journey towards global payroll

What to consider when switching payroll providers

Change is inevitable in all organisations these days, not least due to advances in technology. But when it comes to introducing change of any magnitude such as moving from multiple in-country payroll systems to a single global approach, a change management strategy becomes necessary to navigate it effectively.

This is because, according to Gartner’s 2017 Market Guide for Multicountry Payroll Solutions, the complexities involved in delivering payroll to multiple countries are significant. Considerations here range from needing to tackle tax implications, local legislation and regulations to having to deal with various time zones, processes, currencies and languages.

The triggers for multinational companies wanting to go down this route are generally based on three factors:

  1. Merger and acquisition;
  2. Corporate growth and global expansion;
  3. Increasingly strict security standards.

Other drivers include a desire to boost operational efficiency, reduce the number of administrative headaches and make it easier to access payroll information at a global level. 

Meanwhile, in order to ensure your initiative is successful, it makes sense to plan for change in a strategic sense. Doing so tends to lead to better employee buy-in, which in turn means you are more likely to achieve your objectives.

It is also worth bearing in mind that each organisation has its own unique culture and subcultures, policies and procedures, operational requirements and challenges.

These complexities mean it is important to include everyone in the discussions right from the start, while being sure to keep them focused on the bigger picture and the likely impact of change on the wider organisation. To ensure they remain engaged though, offer them plenty of opportunities to buy-in, for example, by showing them software demos and sharing supplemental resources such as informational literature.

Here are some additional change management tips for companies embarking on major organisational shifts:

  • Be purposeful to ensure a smooth transition: Ensure you have strong and effective executive sponsorship behind the initiative. Understand how it will affect the employees involved and try to find ways to build their enthusiasm for the project. Cultivate positive relationships with third party vendors and partners to ensure it runs smoothly. 
  • Ask staff five basic questions before starting the initiative:
  1. Do you understand why change is being introduced?
  2. Do you get what is in it for you?
  3. What knowledge or information do you require to help you deal with the proposed change?
  4. Are you willing and able to promote the proposed change?
  5. Do you have the necessary tools in place to do your job once the changes have been implemented? 
  • Create a diverse taskforce for change: To encourage engagement in the project, it is vital to communicate clearly, openly and transparently from day one. Enlist employees to clarify what ‘going from good to better’ looks like to them and create space for people to ask questions. Include both change champions and the ‘nay-sayers’. 
  • Manage risk proactively: The most common risks include lack of employee co-operation or adoption, key individuals leaving and a failure to meet objectives. Global companies also need to bear factors in mind such as language barriers, cultural differences and local laws that can vary widely from country to country. 

Here are these seven additional considerations to include in your change management plan:

  1. A roadmap for sponsors;
  2. Stakeholder management;
  3. Communications;
  4. Management coaching;
  5. Resistance management;
  6. Training;
  7. Metrics

Conclusion

When it comes to adopting a global approach to payroll, it is generally all about using standardised approaches, systems and reporting as well as undertaking lots of communication and training. But the most important success factor of all is to involve employees in any change decisions, ensuring all affected regions are represented and co-opting key stakeholders who have ‘skin in the game’.

Lee-ann Kilroy

Lee-ann Kilroy is solutions support director at global payroll services provider, iiPay. She joined the company from a UK top 40 accountancy firm and has held key leadership roles in its operations, implementation and project management teams. Lee-ann works alongside the company’s enterprise team to provide custom solutions for all accounts.

 

 OTHER ARTICLES THAT MAY INTEREST YOU

 The importance of change management in global payroll initiatives

Making the journey towards global payroll

What to consider when switching payroll providers