Overcoming Challenges When Implementing New Technology

Making the decision to procure new technology is often viewed as a strategic initiative with the goal of allowing investment managers to scale their businesses while solving for inefficiencies and functionality gaps. This endeavor often faces a number of significant challenges.

We recently conducted a poll on LinkedIn to identify the biggest challenge that leaders face when implementing new technology into their business operations. The results were telling: a significant 54% of respondents cited "Resistance to change" as the primary challenge, followed by "Integration" at 21%, "Cost" at 13%, and "Expertise" at 12%. These insights reveal critical areas that need to be addressed for smoother technological transitions.

While more than half of the voters chose resistance to change as the predominant challenge, that resistance can manifest in various forms-from fear of the unknown to skepticism about the benefits of new technology. Employees might worry about job security, struggle with adapting to new systems or simply prefer the comfort of familiar processes.

Understanding the Roots of Resistance

To effectively address resistance to change, it's essential to understand its roots. Several factors contribute to this phenomenon:

Fear of Job Loss: Automation and advanced technology can lead to concerns about job redundancy.

Comfort with Existing Processes: Employees who are accustomed to current workflows may resist changes that disrupt their routine.

Lack of Awareness: Without a clear understanding of the benefits of new technology, employees may be skeptical about its value.

Insufficient Training: Inadequate training on new systems can lead to frustration and resistance.

Cultural Barriers: An organizational culture that is resistant to change can hinder the adoption of new technologies.

Not Understanding Upfront Requirements: Failure to understand upfront requirements leads to difficulties in allocating sufficient time for testing or providing meaningful participation during the project.

Strategies to Overcome Resistance

Communication: Clearly communicate the benefits of the new technology, emphasizing how it will improve efficiency and job satisfaction. This will motivate employees to engage throughout the project and reduce resistance to change. Additionally, timing is crucial. Communicating the implementation plan well in advance will allow employees to adjust their schedules for tasks such as conceptual design, data collection and end-user testing. A well-developed test plan requires early buy-in from key stakeholders to ensure success. Proper planning and communication can significantly enhance the smooth adoption of new technology within the organization.

Training and Support: Comprehensive training and ongoing support can overcome resistance by helping employees feel more confident in using new technology. However, standardized training is not always the most effective approach. It is more impactful for employees to see how their specific use cases will be handled in the new solution through relevant training that aligns with their particular needs and data sets. Tailoring training to reflect the actual scenarios and data that employees encounter in their daily work can significantly enhance their understanding and acceptance of the new technology.

Change Champions: Identify and empower change champions within the organization who can advocate for the new technology and support their peers. These change champions should develop a well-organized and comprehensive change management document. This document will be a living document, updated as the organization progresses through each phase of the engagement. Change champions are a key element in the successful adoption of new technology, but this role is sometimes overlooked when there is a desire to keep costs low. Empowering these champions can significantly enhance the overall effectiveness of the technology implementation and ensure smoother transitions.

Gradual Implementation: By breaking the implementation into manageable phases, employees can adapt to changes incrementally, which reduces the overall disruption and anxiety associated with new solutions. This approach allows for continuous feedback and adjustments, ensuring that any issues can be addressed promptly. It also provides opportunities for training and support at each stage, helping employees build confidence and competence with the new technology. Gradual implementation fosters a culture of continuous improvement and can significantly enhance the likelihood of successful adoption.

Conclusion

Successfully implementing new technology in any organization requires strategic planning and a thoughtful approach to overcome resistance to change. At SS&C Concierge, we understand the multifaceted challenges that come with implementing new technology in business operations. Our consulting services are designed to help hedge funds, private equity firms and other investment management entities navigate these complexities and achieve successful outcomes.

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