Change Management Lessons Learned From Supply Chain Projects

We made a huge mistake in one of our first deals. Everyone says you should buy a business that’s run on paper, and update the systems to run on software, This sounds easy, but it’s hard to execute. We bought a business just like this. Everything was done on paper: Quotes for clients, sales orders, and receipts. The bookkeeper tabulated everything by hand each week. As soon as we bought the business, I thought we’d quickly implement the latest software and the business would instantly run 10x more efficiently. I was wrong. The employees barely knew who we were, so they didn’t trust our changes. They resisted and assumed we were out to replace them. Plus, many barely knew how to use email, let alone the latest CRM. It actually took months to implement these changes - and I set our relationship back with the employees by rushing to make changes before I knew them. Lesson: You have to build trust with the team before you implement changes. Any change you make has to take into account their skill sets and existing systems. If you strategize on a change without knowing the team, the change will fail and you will hurt your relationship w/ employees.

𝗬𝗼𝘂 𝗯𝘂𝗶𝗹𝘁 𝘁𝗵𝗲 𝘀𝘆𝘀𝘁𝗲𝗺. 𝗧𝗵𝗲 𝗰𝘂𝗹𝘁𝘂𝗿𝗲 𝗿𝗲𝗷𝗲𝗰𝘁𝗲𝗱 𝗶𝘁. 𝗧𝗵𝗲 𝗰𝗹𝗮𝘀𝗵 𝘆𝗼𝘂 𝗱𝗶𝗱𝗻’𝘁 𝗽𝗹𝗮𝗻 𝗳𝗼𝗿. The project’s on time. The dashboard’s green. The team’s hitting milestones like clockwork. But under the surface—tension. Not chaos. Just... friction. Quiet, unspoken. But real. It’s where task completion collides with human confusion. Where “Go-Live” feels like “Go-where?” to the people who matter most. 𝗟𝗲𝘁’𝘀 𝘂𝗻𝗽𝗮𝗰𝗸 𝟯 𝗽𝗹𝗮𝗰𝗲𝘀 𝘄𝗵𝗲𝗿𝗲 𝗱𝗲𝗹𝗶𝘃𝗲𝗿𝘆 𝗮𝗻𝗱 𝗮𝗱𝗼𝗽𝘁𝗶𝗼𝗻 𝗾𝘂𝗶𝗲𝘁𝗹𝘆 𝗱𝗿𝗶𝗳𝘁 𝗮𝗽𝗮𝗿𝘁: ⚠️ 𝗦𝘂𝗰𝗰𝗲𝘀𝘀 𝗛𝗼𝗿𝗶𝘇𝗼𝗻 𝗠𝗶𝘀𝗺𝗮𝘁𝗰𝗵 PMs cheer at delivery. CMs sigh, that’s when the real work begins. -> One measures tasks. -> The other measures traction. ✅ 𝗙𝗹𝗶𝗽 𝗶𝘁: ↳ Set shared goals. ↳ If no one’s using it in 90 days, it's not a success. ↳ Build for traction, not just closure. -> 𝗖𝘂𝗹𝘁𝘂𝗿𝗲 𝗚𝗲𝘁𝘀 𝗦𝗶𝗱𝗲𝗹𝗶𝗻𝗲𝗱 The plan disrupts the org. But the org? It pushes back. -> People don’t resist change. -> They resist loss of control, clarity, or comfort. ✅ 𝗙𝗹𝗶𝗽 𝗶𝘁: ↳ Include culture in your risk log. ↳ Assess impact before you design the shiny thing. ⚠️ 𝗧𝗼𝗼𝗹 𝗧𝗲𝗿𝗿𝗶𝘁𝗼𝗿𝘆 𝗪𝗮𝗿𝘀 Comms plans. Training decks. Risk logs. Everyone’s building… their own thing. -> PM: “I’ve got a plan for that.” -> CM: “So do I.” -> Team: “Wait—who’s doing what?” ✅ 𝗙𝗹𝗶𝗽 𝗶𝘁: ↳ One source of truth. ↳ One narrative. ↳ Fewer “I thought you had it” moments. 𝗧𝗿𝗮𝗻𝘀𝗳𝗼𝗿𝗺𝗮𝘁𝗶𝗼𝗻 𝗳𝗮𝗶𝗹𝘀 𝘄𝗵𝗲𝗻 𝗲𝗶𝘁𝗵𝗲𝗿 𝘀𝗶𝗱𝗲 𝗴𝗼𝗲𝘀 𝗿𝗼𝗴𝘂𝗲. ✅ PM without CM? You’ll build it—no one will use it. ✅ CM without PM? You’ll inspire people—to nothing. 𝗕𝘂𝗶𝗹𝗱 𝗯𝗼𝘁𝗵. 𝗕𝗿𝗶𝗱𝗴𝗲 𝗯𝗼𝘁𝗵. Because transformation lives where delivery and adoption hold hands. Where have you seen this show up? Drop your invisible friction story below. ----- 👋 I’m Lars – delivering transformation that sticks. 🔔 Follow me for more on 𝗳𝗿𝗮𝗰𝘁𝗶𝗼𝗻𝗮𝗹 𝗹𝗲𝗮𝗱𝗲𝗿𝘀𝗵𝗶𝗽 and 𝗰𝗵𝗮𝗻𝗴𝗲 𝗺𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁. ✉️ DM 'READY' for insights.

Because supply chain failures can bankrupt a company... This infographic shows 7 companies that filed for bankruptcy and the hard lessons: 👉 Revlon (2022); $2B Cosmetics manufacturer ❓ Why: intensified competition for ingredients, and vendors with 75-day payment terms demanding cash in advance for new orders ✅ Hard Lessons Learned: proactively manage supplier risks; diversify supplier base and maintain strong supplier relationships 👉 Party City (2023); $2.16B Party supplies and decorations retailer ❓ Why: global supply chain uncertainty, COVID-19 economic pressures, and the 2019 helium shortage ✅ Hard Lessons Learned: identify alternate sources or substitutes for critical materials; develop contingency plans for critical resource shortages 👉 Bed Bath & Beyond (2023); 5.34 B Home goods and furniture retailer ❓ Why: inability to adapt the company’s supply chain to e-commerce trends ✅ Hard Lessons Learned: align supply chain capabilities with changing consumer preferences; invest to support online and in-store demand shifts 👉 J.C. Penney (2020); $7.6B Department store for apparel, home ❓ Why: inability to adapt to e-commerce channel; excess inventory and markdowns, trapping cash flow ✅ Hard Lessons Learned: optimize inventory management; implement accurate demand forecasting and inventory optimization tools 👉 FoxMeyer Drug (1996); it was a pharmaceutical distributor, $5B in sales ❓ Why: failed ERP implementation disrupted its supply chain operations, leading to significant financial losses ✅ Hard Lessons Learned: effective planning, change management, and thorough testing are critical for successful ERP rollouts 👉 Sears (2018); once a leading American retailer with $53B in sales ❓ Why: Inability to adopt technology-driven supply chain solutions, leading to inefficiencies ✅ Hard Lessons Learned: leverage supply chain efficiency as a competitive advantage; continuous investment in logistics and technology 👉 Tupperware (2023); over $1B Iconic food storage brand ❓ Why: underperformance in direct sales channels, challenges in transitioning to e-commerce, increased costs of labor, freight and raw materials (plastic resin) ✅ Hard Lessons Learned: modernize supply chain to adapt to changing market demands, proactive cost management and sourcing 📒 Note: some of these companies emerged from bankruptcy Any other lessons to add?

𝗚𝗲𝗿𝗺𝗮𝗻 𝗦𝘂𝗽𝗲𝗿𝗠𝗮𝗿𝗸𝗲𝘁 𝗖𝗵𝗮𝗶𝗻 𝗟𝗶𝗱𝗹 𝗷𝘂𝘀𝘁 𝘄𝗿𝗼𝘁𝗲 𝗼𝗳𝗳 €𝟱𝟬𝟬 𝗠𝗜𝗟𝗟𝗜𝗢𝗡 𝗼𝗻 𝗮 𝗳𝗮𝗶𝗹𝗲𝗱 𝗦𝗔𝗣 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻. Seven years. 1,000 employees. Hundreds of consultants. Zero ROI. The German retail giant had to scrap their entire eLWIS project and revert to legacy systems. What went catastrophically wrong? ➤ Refused to adapt processes to SAP standards (insisted on purchase price vs retail price inventory valuation) ➤ Massive over-customization that broke system integrity ➤ Executive turnover killed project continuity (CEO + Head of IT both left mid-project) ➤ Inadequate change management despite massive investment The kicker? SAP awarded Lidl a "best customer" prize in April 2017... then Lidl killed the project 15 months later. 𝗛𝗲𝗿𝗲'𝘀 𝘁𝗵𝗲 𝗯𝗿𝘂𝘁𝗮𝗹 𝗿𝗲𝗮𝗹𝗶𝘁𝘆: 𝟱𝟱-𝟳𝟱% 𝗼𝗳 𝗘𝗥𝗣 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗮𝘁𝗶𝗼𝗻𝘀 𝗳𝗮𝗶𝗹. 𝗧𝗵𝗲 𝘁𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝘂𝘀𝘂𝗮𝗹𝗹𝘆 𝘄𝗼𝗿𝗸𝘀 𝗳𝗶𝗻𝗲. 𝗧𝗵𝗲 𝗼𝗿𝗴𝗮𝗻𝗶𝘇𝗮𝘁𝗶𝗼𝗻𝘀 𝗶𝗺𝗽𝗹𝗲𝗺𝗲𝗻𝘁𝗶𝗻𝗴 𝗶𝘁? 𝗡𝗼𝘁 𝘀𝗼 𝗺𝘂𝗰𝗵. 𝗞𝗲𝘆 𝗹𝗲𝘀𝘀𝗼𝗻𝘀 𝗳𝗼𝗿 𝗳𝗶𝗻𝗮𝗻𝗰𝗲 𝗹𝗲𝗮𝗱𝗲𝗿𝘀: ✅ Set hard budget escalation limits (50%, 100%, 150% triggers) ✅ Limit customization to TRUE competitive differentiators ✅ Ensure leadership stability during multi-year projects ✅ Change management isn't optional - it's survival ERP success isn't about buying the best software. It's about executing the best transformation strategy. #ERP #DigitalTransformation #CFO #ProjectManagement #SAP Key lessons for finance leaders:  Set hard budget escalation limits (50%, 100%, 150% triggers)  Limit customization to TRUE competitive differentiators  Ensure leadership stability during multi-year projects  Change management isn't optional - it's survival ERP success isn't about buying the best software. It's about executing the best transformation strategy. What's the most expensive implementation mistake you've witnessed? #ERP #DigitalTransformation #CFO #ProjectManagement #SAP