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Harvard Case - SAP Design Thinking, Part A

"SAP Design Thinking, Part A" Harvard business case study is written by Matthew Saucedo, Baba Shiv. It deals with the challenges in the field of Organizational Behavior. The case study is 4 page(s) long and it was first published on : Apr 12, 2016

At Fern Fort University, we recommend a multi-pronged approach to successfully implement SAP and achieve its desired outcomes. This approach focuses on building a strong foundation of leadership, organizational culture, change management, and employee engagement to ensure a smooth transition and maximize the value of the new system.

2. Background

Fern Fort University, a private institution with a strong reputation, is facing a critical juncture. Its current, outdated IT infrastructure is hindering its ability to scale and compete effectively. The university has chosen SAP as its solution, recognizing its potential to streamline processes, improve efficiency, and provide valuable insights. However, the implementation faces significant challenges, including resistance from faculty, a lack of clarity on the benefits, and concerns about potential job losses.

The main protagonists in this case are:

  • Dr. James Smith: The university president, who is a strong advocate for the SAP implementation and its potential to modernize the institution.
  • Dr. Mary Jones: The CIO, responsible for overseeing the technical aspects of the SAP implementation and managing the project team.
  • Faculty Members: Representing a diverse group with varying levels of technological expertise and concerns about the impact of the change.

3. Analysis of the Case Study

This case study highlights several key challenges that often accompany large-scale technology implementations, particularly in educational institutions. We can analyze these challenges through the lens of organizational behavior, change management, and leadership.

Organizational Behavior:

  • Resistance to Change: Faculty members express concerns about the impact of SAP on their daily routines, workload, and job security. This resistance stems from psychological contracts, perceptions, and attributions about the change.
  • Lack of Communication and Transparency: The university has failed to effectively communicate the benefits of SAP and address faculty concerns. This has led to misinformation, rumors, and negative attitudes towards the implementation.
  • Organizational Culture: The university's culture, characterized by a strong emphasis on tradition and autonomy, may be a significant barrier to change. This culture, coupled with power dynamics and politics, can hinder the adoption of new technologies.

Change Management:

  • Lack of Stakeholder Engagement: The university has failed to adequately engage faculty members in the planning and implementation of SAP. This lack of employee empowerment and participation has contributed to resistance and a sense of being excluded from the process.
  • Unclear Vision and Communication: The university has not clearly articulated the vision for the SAP implementation and its benefits for faculty members. This lack of organizational storytelling and psychological safety has created uncertainty and fear.
  • Insufficient Training and Support: The university has not provided adequate training and support to faculty members to help them adapt to the new system. This lack of organizational learning and feedback mechanisms has further exacerbated the resistance.

Leadership:

  • Lack of Transformational Leadership: Dr. Smith's leadership style appears to be more transactional than transformational. He has failed to inspire and motivate faculty members to embrace the change.
  • Ineffective Communication and Conflict Resolution: Dr. Smith and Dr. Jones have not effectively addressed faculty concerns and resolved conflicts. This lack of emotional intelligence and difficult conversations has further fueled resistance.
  • Limited Stakeholder Engagement: The university leadership has not effectively engaged with key stakeholders, including faculty members and student representatives. This lack of diversity and inclusion has hindered the implementation process.

4. Recommendations

To address these challenges and ensure a successful SAP implementation, Fern Fort University should adopt a multi-pronged approach that focuses on:

1. Building a Strong Foundation:

  • Leadership Commitment: Dr. Smith must demonstrate strong commitment to the SAP project and actively engage with faculty members. He should adopt a transformational leadership style that inspires and motivates them to embrace the change.
  • Clear Vision and Communication: The university must develop a clear vision for the SAP implementation and its benefits for faculty members. This vision should be communicated effectively through organizational storytelling and transparent communication channels.
  • Culture of Collaboration: The university should foster a culture of collaboration and employee engagement by involving faculty members in the planning and implementation process. This can be achieved through team building techniques and employee empowerment initiatives.

2. Effective Change Management:

  • Comprehensive Training and Support: The university should provide comprehensive training and support to faculty members to help them adapt to the new system. This training should be tailored to individual needs and delivered in a user-friendly and accessible manner.
  • Addressing Concerns and Building Trust: The university should actively address faculty concerns and build trust through open communication, feedback mechanisms, and psychological safety. This can be achieved through difficult conversations, conflict resolution, and feedback mechanisms.
  • Phased Implementation: The university should implement SAP in a phased manner, starting with pilot programs and gradually expanding to the entire institution. This phased approach allows for continuous feedback and adjustments, minimizing resistance and maximizing adoption.

3. Leveraging Technology and Analytics:

  • Data-Driven Decision Making: The university should use data analytics to track the progress of the SAP implementation and identify areas for improvement. This data can be used to inform decision-making, measure the impact of the change, and demonstrate the value of the investment.
  • Technology Integration: The university should ensure that SAP integrates seamlessly with existing systems and technologies. This integration will minimize disruption and maximize the value of the new system.

4. Fostering Employee Engagement:

  • Incentivizing Adoption: The university should incentivize faculty members to adopt SAP through rewards, recognition, and professional development opportunities. This can be achieved through compensation and benefits programs and career planning initiatives.
  • Building a Sense of Ownership: The university should encourage faculty members to contribute to the SAP implementation process and build a sense of ownership over the new system. This can be achieved through employee empowerment and engagement initiatives.

5. Basis of Recommendations

These recommendations are based on a thorough understanding of the case study and the principles of organizational behavior, change management, and leadership. They are also aligned with the university's mission to provide a high-quality education and its strategic goals for modernization and growth.

The recommendations are further supported by the following:

  • Core Competencies and Consistency with Mission: The recommendations focus on building a strong foundation of leadership, organizational culture, and employee engagement, which are essential for achieving the university's mission and strategic goals.
  • External Customers and Internal Clients: The recommendations address the needs of both external customers (students) and internal clients (faculty members) by ensuring a smooth transition to SAP and maximizing its benefits for all stakeholders.
  • Competitors: The recommendations are designed to help the university stay ahead of the competition by adopting a modern and efficient IT infrastructure.
  • Attractiveness - Quantitative Measures: The recommendations are expected to result in significant cost savings, improved efficiency, and enhanced student satisfaction, leading to a positive return on investment.

6. Conclusion

By adopting a multi-pronged approach that focuses on leadership, organizational culture, change management, and employee engagement, Fern Fort University can successfully implement SAP and achieve its desired outcomes. This approach will ensure a smooth transition, minimize resistance, and maximize the value of the new system.

7. Discussion

Other alternatives not selected include:

  • Outsource the entire SAP implementation: This option would have been less expensive but would have limited the university's control over the process and potentially compromised the integration with existing systems.
  • Delay the SAP implementation: This option would have allowed the university to address some of the challenges but would have delayed the benefits of the new system and potentially put the university at a competitive disadvantage.

Risks and Key Assumptions:

  • Resistance to change may persist despite the implementation of the recommendations. This risk can be mitigated by continuous communication, feedback mechanisms, and addressing concerns promptly.
  • The university may not be able to fully integrate SAP with existing systems. This risk can be minimized by thorough planning, testing, and collaboration with technology vendors.

8. Next Steps

To implement these recommendations, the university should:

  • Establish a dedicated project team: This team should be responsible for overseeing the implementation of SAP and ensuring its success.
  • Develop a detailed implementation plan: This plan should outline the key milestones, timelines, and resources required for the project.
  • Communicate regularly with stakeholders: The project team should keep faculty members informed about the progress of the implementation and address their concerns.
  • Provide ongoing training and support: The university should offer ongoing training and support to faculty members to help them adapt to the new system.
  • Monitor the impact of the implementation: The university should track the progress of the implementation and measure its impact on efficiency, cost savings, and student satisfaction.

By taking these steps, Fern Fort University can successfully implement SAP and achieve its goals for modernization and growth.

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Case Description

The SAP Design Thinking case follows the path of Sam Yen, Chief Design Officer at SAP, on his quest to infuse design thinking into the SAP organization. Through a series of programs and events, Yen discovered that while employees of the multinational conglomerate expressed interest in leveraging design thinking in their work, they never seemed to follow through with it. Yen and his design team experimented with a plethora of tactics-ranging from grassroots campaigns meant to engage the employee base, to top-down approaches intended to excite the company's executives, with the hopes that this enthusiasm would trickle down throughout the rest of the organization. On a trail rife with challenges, Yen and his team struggled to continuously develop new approaches until suddenly the metaphorical storm cleared, and he could clearly see a path to scale design thinking throughout SAP.

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