MSD Turns Challenges Into ERP Success With Prosci

The Louisville Metropolitan Sewer District (MSD) was at a crossroads with two significant projects that tested its change management capabilities. The first challenge involved improving their "time to pay” invoices project. Their initial efforts brought modest improvements but did not fully resolve the underlying issues, leading to vendor and partner dissatisfaction due to delayed payments.

Challenge

MSD is a public utility company with more than 800 employees. They ensure clean, safe waterways by providing wastewater, stormwater and flood protection services to Kentucky’s Louisville Metro area.

The organization was experiencing longstanding invoice payment issues and applied technological fixes that achieved only modest improvements. On-time invoice payment rates improved from 35% to an average of 75% but declined over time. While helpful, the improvement did not solve the problem entirely, revealing that technology alone was not the answer.

Similarly, the upcoming ERP migration project presented challenges. After struggling with the invoice payment project, the change team needed to overcome the organization’s hesitance around implementing changes. They also needed a way to successfully navigate complex processes affecting many people and critical business functions.

Solution

Demonstrate success by applying ADKAR® Model to time-to-pay project
Upskill managers and teams with role-based change management training
Equip and support sponsors to perform their critical role during change
Apply the comprehensive Prosci Methodology to the ERP project, integrating with project management from the start

To address ongoing issues with time to pay invoices, MSD implemented the Prosci ADKAR Model. They prioritized resolving payment delays by raising awareness of the existing problems and fostering a desire for change among the team.

By facilitating change with digital tools and Prosci change management principles, MSD educated and trained their staff on streamlined processes, enhancing knowledge and ability. Continuous monitoring and reinforcement of these changes ensured that improvements were maintained, resulting in a more stable and predictable payment cycle.

“For several years, MSD had unsuccessfully attacked the problem with time to pay invoices. It wasn’t until we learned the root causes of the issue AND applied the Prosci change management principles that we successfully made the significant change to an ERP system.”

—Angela Akridge, Chief Strategy Officer for Business Transformation & Regulatory Compliance

Building a strong foundation for change

Demonstrating ADKAR’s effectiveness with the payments project paved the way for applying the comprehensive Prosci Methodology to the ERP systems migration project.

To lay the groundwork for this significant initiative, MSD identified the CFO as the Executive Sponsor, ensuring clear communication about his role through organizational channels. Prosci training focused on the ADKAR Model and helping people managers understand their responsibilities in guiding people on their teams through the transition.

Dedicating change management support

MSD formed a dedicated Change Management Team supported by certified change management practitioners. This team developed structured communication and training plans to ensure timely and effective engagement with all impacted groups. They conducted training sessions for people managers, equipping them to support their teams effectively.

Emphasizing change readiness

As the project approached go-live, the team conducted multiple rigorous testing cycles to ensure technical stability. Over 250 end-users received comprehensive training, significantly enhancing their operational readiness. Post-launch, the team provided hyper-care support to resolve any issues, ensuring a smooth transition promptly.

Results

Stable, improved payment times

The structured application of the ADKAR Model yielded significant improvements in the time to pay invoices. It moved from inconsistent performance to reliable excellence, with stable payment rates consistently above 97%. Stabilizing payment performance enhanced vendor satisfaction through improved turnaround times and fostered better partner relationships.

Leadership support and commitment

The success also built internal confidence about applying Prosci approaches on future projects like the complex ERP system migration. With support and commitment from MSD leadership, the change team deployed the comprehensive Prosci Methodology to the ERP project, integrating it with project management approaches from the outset.

Seamless ERP system migration

The ERP systems migration was completed successfully within the planned 13-month window. Comprehensive training and preparatory “practice” for 253 end-users ensured they were operationally ready, leading to a seamless go-live and stabilization phase that mitigated potential disruptions. The continuous support and clear communication throughout the process resulted in high engagement with and adoption of the new system.

Once a significant cause for concern at MSD, the ERP migration project was hailed as a resounding success. Thanks to the comprehensive integration of change management practices and the Prosci Methodology, the project’s smooth implementation and minimal disruption made it a “non-event.”

Two notable outcomes underscored this success:

Successful Go-Live – The transition to new ERP system was accomplished on time, achieving milestone deadlines with no issues reported during the initial go-live week. This demonstrated the project's robust preparation and effectiveness of their change management approach.
Wide Adoption – Over 95% of targeted employees successfully adopted the new system within the first month, significantly exceeding initial projections of 80%.

Turning a Challenge Into Opportunity

MSD's journey spotlighted the transformative power of the Prosci Methodology and ADKAR Model in addressing the “time to pay” project challenge while laying a robust foundation for the ERP system migration, future projects, and continuous improvement. By focusing on the people side of change, MSD also achieved remarkable improvements in operational efficiency and stakeholder satisfaction. Their success set a new standard at MSD for change done right.