Understanding Your Total Cost of Change
by: Mats Andersson, M Sc
Most organisations today are aware of the importance of clear and efficient business proc-esses for achieving their corporate goals. They have also often gone to considerable trouble and expense to put such processes in place, using such frameworks as BPR, Six Sigma™, Balanced Scorecard™ and CMM. Meticulously selected and tuned ERP systems running on carefully selected infrastructure components, finally, make it all work. The question is: even if your systems are open and scaleable, are your processes and management systems? It is no exaggeration to say that many organisations today find themselves in a quasi-permanent state of upheaval, whether as a result of changing customer preferences, disruptive innova-tion, mergers and acquisitions, or government regulations. Change not only brings opportuni-ties, but also requires an investment: in monetary terms, in time, and in effort that has to be diverted from the “business as usual”. Under such circumstances, it is imperative that you know not just your Total Cost of Ownership, but also what we at Cyma have termed the Total Cost of Change. This article outlines the importance of understanding the total cost of change and highlights some examples where a thorough understanding of how these costs arise is crucial.