Change management: How to introduce spend management software

In the UK workplace, almost every failed project starts out as a really good idea. But somehow, somewhere between the concept and the execution, it runs off the rails. That's true whether you're making huge changes to your organisation's structure and goals or just tweaking something as specific as cash flow management strategies.

So, it's not surprising to learn that upgrading your business spend management software can meet all kinds of obstacles. In a perfect world, it would be as easy as selecting a week that doesn't conflict with a monthly close or a major audit, providing the necessary training to the end users, and throwing the proverbial switch. But nothing's ever that easy, is it?

That's because no matter how simple the developers make the software, human beings remain undeniably complex.

Identifying the barriers to change management in finance

"People are people — carbon and water. As such, we resist change," says David A. Shore of Harvard Business School. "It's important to recognise that managing change is about upsetting people only at a rate they can tolerate."

Regarding what motivates human beings, logic is pretty low on the list. It's said, "There are no reasons, only rationalisations." Whatever you want to call them, though, change management guru Rick Maurer identifies three levels of resistance to change:

1. "I don't get it."
2. "I don't like it."
3. "I don't like you."

These are all solvable — indeed, avoidable — problems, but each requires a different approach.

Involving users from spend management strategy through spend management process

Now, we’re going to focus on the change management dimension of implementing new spend management software (not user acceptance testing). So, let’s break this down by Maurer’s levels.

Change management challenge 1: “I don’t get it”

It all starts with convincing people something must be done. Explain the pain points (if it's spend management, they're probably all too familiar) and why adopting a new solution is the best course of action.

Sharing a clear business case, an example training plan and a clear implementation timetable can go a long way toward overcoming any objections. But don't forget to also explain it in ways that people can empathise with.

Take Carolina Einarsson, Finance Director at US and UK-based Essentia Analytics' review of implementing Payhawk, for example:

We chose Payhawk over Spendesk because we preferred the solution's flexibility. We can set up the correct workflows and choose which parts to delegate to employees vs. the finance team. Payhawk has clearly built the platform for finance leaders, and their team has been supportive from the get-go.

Plus, choose a solution (like Payhawk) that supports you with implementation at every step with things like the following, which make it impossible "not to get":

• Training
• Implementation guides
• Help centre articles
• Dedicated implementation managers
• And more

Change management challenge 2: "I don't like it"

At this point, we must address one of life's major primal problems: "What's in it for me?"

To avoid crashing into this conflict, keep end users involved in the process, getting them to identify issues and potential solutions upfront.

"Involve people who are concerned by your change initiative from the very beginning," CQ Net advises. "Make sure their opinions are heard, and your decision-making process is transparent and fair. Identify key people that support your change efforts and ask them whether they want to actively support your initiative as change agents."

And be prepared to be pleasantly surprised. If you have chosen the right product, then the change management won't be nearly as challenging as you fear. Take German automotive giant ATU and its experience in digital transformation and switching to Payhawk.

Sebastian Jarankowski CFO at ATU shares:

ATU operates a chain of auto retail stores and workshops, and our branch managers are not necessarily the most familiar with financial tools. When we first introduced Payhawk, we were worried about how our colleagues would cope with the new digital means of payment, receipt uploads, and the portal — and wondered if adopting the product would mean a lot of training. But when we collected the cards at the end of the first test phase, we got the best feedback: "Why are you taking our cards away? We don't want to give them back!

Change management challenge 3: "I don't like you"

For those naysayers at Level 3, it's not really about not liking someone; it's more about not fully trusting the person proposing the new solution (or their leadership). People may resist because they've seen similar projects fail due to management errors or lack of commitment. If they think the proposed project isn't going to go the distance, they won't put in the effort needed to make it work.

Here, it's important to share data on your expectations for the new solution long-term to help your business (and its employees). For example:

With Payhawk, customers can expect to get:

• 38% faster time to value than competitors in the *G2 Expense Management category
• A ten-month ROI or payback (with 40% of our customers getting there in just six months)

*According to G2 data, it's ten months with us vs. 13.8 months for other competitors.

Making change management a reality

Switching to a new spend management platform might seem like a no-brainer, but if you don't consider change management, you can quickly hit roadblocks. Employees may resist new systems for various reasons (whether they don’t understand the need for it, don’t see the benefits for themselves, or simply don’t trust the process).

To make change management work, you should get people involved early, share clear and relatable benefits, and choose a platform that’s easy to use, like Payhawk. By focusing on training, support, and open communication, you can ease the transition and get everyone on board for a smoother experience.

As covered above, picking the right spend management solution for your organisation will go a long way to tackling any potential change management issues. So, do your homework and make sure you choose a platform that your employees will love.

Charlotte Huynh, Head of People at US and UK-based hospitality business, State of Play (Bounce, Flight Club, and HiJingo) says:

When I have to submit expenses, it’s very easy to do as you can download an invoice from email straight onto Payhawk. It literally takes a couple of seconds. I love Payhawk because I find it very efficient, easy- to use, and secure!”

Book a personalised Payhawk demo today to see how easy (and valuable) the change could be for your business.