An ERP implementation requires a dedicated focus on processes, technology, data, and PEOPLE. As one of the key leaders on the organizational change management (OCM) team, you’re probably overwhelmed thinking about all the “people-related” work ahead.
Instead of overwhelming you further by detailing every component of OCM, we’re focusing on one of the most important aspects of OCM: designating a change sponsor (a.k.a. a project sponsor).
What is a change sponsor, why do you need one, and what should be on your change sponsor checklist? Here are all of the details you need to know.
What is a Change Sponsor?
A change sponsor is a respected employee who actively champions a business initiative, while remaining visible and engaged.
This is usually someone from your C-suite, though not every executive is well-suited for the role. Ideally, it should be someone willing and able to share important details and generally build buzz around the project.
Change sponsors are often called project sponsors as they support the overall project rather than just OCM activities. There are five main areas they should support:
- Securing the project budget
- Engaging senior management
- Supporting the project team
- Actively and visibly supporting the change
- Anticipating and managing pain points
Change Management Case Study
The client recognized their need for more comprehensive change management, so they asked us to fill in the gaps. We developed a robust communication plan to supplement the vendor’s communication approach.
Your Change Sponsor Checklist
It is up to the organizational change management team to identify and support change sponsors. If you’re an OCM lead, here are some best practices to follow:
1. Understand the Role: Change Sponsors vs. Project Managers
While change sponsors have certain responsibilities that are similar to project manager responsibilities, these two roles are not the same.
Project managers are responsible for handling the day-to-day tasks required to keep the implementation afloat. They manage short-term expectations, keep budgets and timelines on track, and resolve issues as they occur.
A change sponsor has a broader perspective. Their job is to help their peers understand the project’s long-term goals, and they focus on communicating how new technology will help move the business closer to these goals.
For example, a manufacturing company might use a change sponsor to support the transition to a new ERP system. By engaging a senior executive from the production department as the change sponsor, the company could effectively communicate the benefits of the manufacturing ERP system to the production team and increase user adoption.
2. Identify an Effective Change Sponsor
There are certain traits that a successful change sponsor must possess. To be effective in this role, they must be:
- Able to clearly articulate a vision
- Able to create high-profile teams
- Confident enough to speak publicly about the change
Our organizational change management consultants often tell clients that above all else, a change sponsor must have the organizational power required to help spur decision-making and leadership action. They should know how to work with urgency, motivating others to make the project a priority.
Sometimes, it’s obvious who should fill the role of the change sponsor. There might be one individual who is especially supportive of the effort and has all the traits listed above.
Other times, you might not be as certain. If you have multiple contenders or no one particularly stands out, you can conduct what’s called a sponsorship assessment. In short, this means analyzing each of your potential sponsors.
Determine if they possess the right traits and assess their current level of involvement. Then, select the individual who best aligns with the project’s needs and organizational goals.
3. Help the Sponsor Build a Coalition of Support
One of the key responsibilities of change sponsors is to build a coalition of support among project stakeholders.
Most organizational changes impact multiple business units and require multiple sponsors. This sponsor coalition should consist of the primary sponsor along with supporting sponsors throughout the organization.
The OCM team must help the primary sponsor enlist their peers and help these peers understand why they must sponsor the change among their respective departments.
4. Continue to Support Your Change Sponsors
Throughout the project, the OCM team should support sponsors by:
- Providing administrative and logistical assistance
- Explaining the role and coaching the sponsor through it
- Ensuring the sponsor interfaces directly with employees
- Conducting regular meetings to track progress and address concerns
- Holding the change sponsor accountable so they remain committed and effective
Learn More About Change Sponsorship
Change sponsors play a critical role in ERP implementation risk mitigation. These are the people who minimize resistance and maximize user adoption.
Need help navigating a major change in your organization? Our change management consultants can help you develop an OCM plan tailored to your specific needs. Contact us below to learn more and get started.
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