SAP S/4HANA Manufacturing Change Management Considerations

Our customer, a leading Defence manufacturer, approached Project One for support with their SAP S/4HANA transformation Programme. Project One was asked to provide programme leadership and Change Management expertise, to work collaboratively with the selected systems integrator, to drive forward this transition, impacting over 1,600 users across five different UK sites. 

The investment in SAP was one element of a long-term multi-year contract with the Ministry of Defence to supply munitions and engineering support to the UK Armed Forces. Our customer was therefore contractually obliged to deliver on the specific aims and principles of the agreement, which included a transformation from SAP ECC6 to SAP S/4HANA. 

Our customer had been working with their existing SAP ECC6 solution for over twenty years. Over time, processes had strayed from standard practice.  

A lack of knowledge and understanding of standard SAP functionality had resulted in the creation of manual offline processes, which had become deeply embedded in the organisation. This resulted in a lost opportunity to leverage SAP to drive the end-to-end manufacturing process. Functionality such as Master Production Scheduling and Materials Requirements Planning was not being utilised to its full potential, missing the opportunity to utilise SAP for accurate demand, supply forecasting and planning. 

Investment in SAP training over the years had been overlooked, resulting in a workforce heavily reliant on ‘on the job’ learning and knowledge transfer from key individuals. The lack of a structured training approach therefore provided the opportunity for inefficient manual workarounds to be handed down from generation to generation.  

Lack of data governance and process ownership led to ambiguity about roles and responsibilities. A legacy of c. 20 years of data had built up within the existing SAP solution, which left to depreciate, led to mistrust of data, which in part drove the need to generate their own offline ways of working. 

In addition, a lack of awareness across the various functions had led to siloed ways of working and role inconsistencies across the five sites. 

Transitioning to SAP S/4HANA for our customer required a complete overhaul to existing ways of working and behaviours. 

Our Change Management Approach: 

• We built a compelling case for change: 

Our ability to build relationships at a senior level with our customer’s leadership team, including the programme sponsor, enabled us to help them understand their role in supporting the change. This trusted partnership enabled an ongoing and effective means to align on decisions, quickly overcome challenges and provide resources as required. 

We worked with the senior leadership team to build a compelling narrative for the change and benefits case, which formed the basis for our engagement campaign. This centred on the soon-to-be unsupported SAP ECC6 solution but also the need for the business to evolve to meet the ongoing demands of its customers. 

The traditional culture, and change adversity, required the continued reinforcement of the case for change to build awareness and desire, which was adjusted through the consistent use of business readiness assessments.  

• We invested time in thorough change impact assessments: 

A key design principle for our customer’s new solution was agreed around ‘adopt not adapt’. It was agreed that approximately 85% of functionality would be SAP standard, helping to address process variations and mitigate ineffective manual workarounds. 

We conducted detailed change impact assessments, in collaboration with our change network and systems integrator’s functional consultants, to understand the most significant areas of change, key dependencies and requirements for evolved ways of working. This involved stepping through the entire end-to-end manufacturing process, across fourteen different functions, and five different sites.  

A key focus for the sessions and resulting actions was to drive an understanding that the changes being introduced were more than just a system upgrade, which was the perception of many. Of equal or more significance was people recognising their role in the importance of maintaining accurate, complete and timely data.  

• Our engagement strategy considered the varying needs of our stakeholders: 

One of the challenges of delivering change in a manufacturing environment centred around the ‘offline’ nature of the shopfloor community. Their engagement needs and approach varied significantly from the colleagues who worked remotely or in a more traditional office environment. In collaboration with the leadership team, we ensured that face-to-face site led communications were part of our engagement drumbeat. 

• A tailored end user learning journey, utilising various training techniques: 

Our approach to knowledge and capability building was based on the level of impact to current ways of working. 

Face-to-face classroom sessions were rolled out for the most impacted areas, which achieved 100% attendance rate, and were supported by virtual briefings. 

For less impacted areas, a comprehensive set of e-learning based simulations and quick reference guides were developed. These were made accessible via a new online learning platform, generating for the first time, a SAP training legacy for current and future colleagues. 

Dedicated SAP ‘Model Offices’ were established at the main manufacturing sites, providing a physical and immersive experience in the new ways of working. A key enabler was the development of a replica of the future system to support familiarisation and understanding. 

• Embedding change network roles in the organisation, enabling a lasting legacy: 

We aligned the leadership team on the importance of a business led engagement approach, which resulted in the approval and support for a dedicated business change network. During programme delivery, this included the introduction of Subject Matter Experts, Site Implementation Leads and Change Champions. 

A network of new organisational roles, ‘SAP Adoption Leads’ was created to ensure an enduring focus on the adoption and evolution of the new SAP solution and ways of working. These roles were predominantly filled by colleagues who had been part of the programme change network, continuing the sense of ownership that had been developed throughout design and implementation, into business as usual. 

We introduced a new cross-functional governance forum, which brought together the SAP Adoption Leads, Data Governance colleagues, and IT functions, with the purpose to drive SAP best practice, promote user adoption, underpinned by metrics reported to the senior leadership team and reinforced by a BAU leadership sponsor. 

Are you thinking about or already implementing a SAP S/4HANA transformation programme and need change expertise: 

The ability to lead, manage, and sustain change has never been more crucial. Successfully managing change requires experience, expertise, adaptability, empathy and a passion for working with people to make a real difference. Whether you’re implementing technology, process or structural change, at Project One our team is made up of highly skilled Change Management transformers who can make a significant difference to the effectiveness and success of your next change programme.    

Get in touch with us via theteam@projectone.com to explore how we can help you with you define your change management requirements.