As the economy rebounds, businesses are investing in technology to increase efficiency and gain a competitive edge.  In making these high-cost investments, many companies fail to consider the employees who actually use the systems, and the results can be disastrous.
 
A report just released by AMR Research indicates that two-thirds of companies cite issues implementing new systems and defining ROI on IT investments.  In most cases, it is not the system that is the problem, it’s the training on the new system, and the how the employees use--or don’t use--it.
 
According to Ann Parkman, president and founding partner of CEP, companies spend millions of dollars on systems that are never fully utilized by employees.  “Whenever possible, employees use the new technology in ways most closely resembling the system which was replaced,” says Parkman.  “This disconnect between how the system is used and how it is supposed to be used ensures that the ROI goals of the initiative will never be achieved.”
 
Parkman explains that most often, training on the new technology focuses on system features but not on the skills critical workgroups need to perform tasks on the system.  “Whether it is PeopleSoft, SAP, Siebel, or another type of software, the new system will change the way people do their jobs and the skills required to perform to expectations,” Parkman says. 
 
“Top performers eventually learn how to make changes in their jobs to adopt to the new technology,” Parkman adds.  “But estimates show that on average employees only use about 40 percent of the new system’s capabilities, which results in additional problems for the business.” 
 
Parkman recommends organizations spend 10 to 13 percent of their budget for the new system on training.  She also suggests that executives include their training and HR departments as early as possible in the change process.  “What many executives don’t consider when implementing new technology is that the training necessary to use it will vary by job function and user group,” says Parkman.  “Involving HR and training early on allows time for them to do an analysis and recommend the best training or non-training solutions to give the various groups the skills to use the new system.”
 
Analysis is the key to success, concludes Parkman.  “By conducting an analysis to determine how the new technology will affect specific jobs, you can customize training to address the needs of every employee, as well as uncover motivational and other support requirements for successful implementation.”
 
CEP is the industry leader in advising organizations on how to leverage their workforce as a competitive advantage and profit from planned change.  To learn how CEP can help you ensure the success of a major system implementation or other strategic initiatives, please call Paula Alsher at 800.558.4237 or visit www.cepworkforceperformance.com.