While organizational change management is not a new topic to the business world, it remains consistently
overlooked in system implementation projects. This oversight often results in implementations that are
doomed to fail regardless of how well the system may be designed from a technical standpoint. This Statement
on Management Accounting (SMA) considers the human perspective and reaction to change, particularly with
projects focused on the implementation of new systems: How and why do individuals typically respond to
change in the work environment, and what can be done to ease the impact when negative reactions occur?
A structured approach to organizational change management will help identify and minimize issues and risks
associated with the implementation of a new system or process. This SMA defines and describes organizational
change management as it relates to any branch of business and how it applies to management accounting in
particular. It details the typical phases of emotional reactions when change is occurring in the workplace and
ties these phases to the stages of a typical project management methodology. Ultimately, activities and tools
to deliver and control the organizational change management process are presented in actionable terms that
may be immediately applied to a workplace environment. The SMA concludes with a description of the methods
for assessing the success of change initiatives.