Change Management: Don't Let a Million-Dollar System Die from Old Mindsets
20 years of ERP/SCM experience taught me one thing: Software is just an excuse; managing people is the real battlefield.
After 20 years of navigating ERP, SCM, and recently expanding into Real Estate and Insurance, I’ve observed a paradox: Businesses are willing to spend millions on technology but hesitate to invest in shifting human mindsets.
On Day 79, I want to talk about Change Management—something many leaders still dismiss as ‘fluff’ until their projects collapse.
1. The System Isn’t Wrong; The User Mindset Is
In the Vietnamese market, especially for firms operating under VAS (Vietnam Accounting Standards), transitioning from fragmented Excel sheets to an integrated system is a cultural shock. Employees fear losing power (due to data transparency), fear exposure of incompetence (due to standardized processes), and fear the effort of learning.
“Software doesn’t change a business. People use software to change how they create value.”
If you implement a DMS (Distribution Management System) but the sales team continues to work ‘off-system,’ that system is nothing more than an expensive ghost.
2. Comparison: Silo Mindset vs. Systemic Mindset
| Criteria | Silo Mindset | Systemic Mindset (Integrated) |
|---|---|---|
| Data | Departmental, hidden | Shared asset, real-time transparency |
| Process | Ad-hoc, inconsistent | Standardized, Optimization focused |
| Responsibility | Blaming IT/Software | Ownership of input data quality |
| Goal | Individual task completion | Optimizing the entire value chain |
3. Real-World Lessons: From ERP to Personal Finance
When I consult on Real Estate portfolios or Insurance strategies, the principles remain the same. An investor cannot achieve sustainable returns if they maintain a ‘gambling’ habit while demanding professional Risk Management tools.
Change Management is not just a software training session. It is an internal communication campaign, a commitment from the top-down, and empathy for those executing at the bottom-up.
4. Advice for Executives
- Communicate Early and Often: Don’t wait until Go-live. Show them ‘WIIFM’ (What’s in it for me?).
- Identify ‘Champions’: Internal influencers are your extended arms to persuade the masses.
- Accept Temporary Performance Dips: Efficiency will drop initially. That is the price of evolution.
Implementing a new system is a revolution, not a tech upgrade. Don’t let your ship sink at the harbor just because the crew wants to row by hand when you’ve already installed jet engines.