AP Transformation: 5 Ways to Lead Change in Accounts Payable

According to research from McKinsey & Company, 70% of all transformations fail. But it doesn’t have to be that way…

One of the biggest challenges facing a company that will be transitioning to AP automation is getting buy-in across the organization. Sure, management is happy because they are hopefully cutting costs and improving process efficiency, but what about the human aspect of change management? You can change the process, but how do you change minds to solidify that change? We’ve put together a list of strategies to help you lead the way and make the transition easier.

What is lead transformation in AP?

Lead transformation in AP refers to guiding teams and processes through the shift from manual accounts payable tasks to automated, digital solutions. This involves not only implementing new technology but also addressing the human side of change—helping employees understand the reasons for transformation, alleviating fears, and gaining buy-in across the organization. Effective leadership in AP transformation means communicating the benefits, involving staff in the process, providing training, and fostering a culture of continuous improvement. By positioning AP automation as a positive change, leaders can drive engagement and ensure a smoother, more successful transition.

Benefits of lead transformation in AP?

Lead transformation in AP delivers significant benefits by aligning people and processes with automation goals. It reduces fear and resistance to change, increases employee engagement, and ensures smoother adoption of new technologies. By fostering open communication, providing targeted training, and celebrating progress, organizations can boost efficiency, minimize errors, and improve vendor relationships. This approach also empowers employees to focus on higher-value tasks, contributing to overall business performance. Ultimately, effective leadership in AP transformation creates a culture of continuous improvement and positions the AP team as a strategic contributor to organizational success.

Lead employees through organizational change

The biggest hurdle to overcome is fear. Fear of the unknown is something that can freeze an employee in their tracks. But being able to quantify, qualify, and explain the process of what is happening, why it’s happening, and how it will happen creates the vision for automation. One way to approach this is Total Quality Management (TQM).
 
Total Quality Management is a management approach to long–term success through customer satisfaction. In a Total Quality Management effort, all members of an organization participate in improving processes, products, services, and the culture in which they work.
 
AP automation is a part of this ‘whole company’ approach to serving the customer. If the AP department is not quickly and efficiently paying its vendors, those delays may have a trickle-down effect on the company’s ability to perform for their customer. It’s important to lead employees through this perspective, showing them the big picture and their role in the grand scheme.

AP transformation is an important cog in the total quality management machine

To embed a TQM approach in the AP department, the AP manager must make sure the process is smooth in order to keep performance consistent during the transition. Change management falls at the feet of the department manager and they must lead accordingly, since failure to properly garner support and buy-in from the main system users can significantly slow down implementation and derail AP automation projects all together.
 
Change is not an easy undertaking, but it can be a successful and even celebrated journey when done right. To help you along the way, here are 5 ways a manager can lead through the automation transition:

1.    Quell fear over job loss:

  • Explain how AP automation doesn’t necessarily mean job elimination—instead, it can lead to greater job satisfaction through efficiency improvements and create opportunities for employees to add more value through analysis and problem-solving they may not be able to undertake today—thus making the best use of their time.

  • Make the unknown known Give employees the who, what, when, where, and why.

  • Demonstrate how they will benefit from automation Buy-in is much easier when the benefits and direct value to employees are clearly communicated.

  • Sell the change According to SiriusDecisions, 71% of executives indicate that lost sales are due to unsuccessfully articulating value. As an AP manager, you are responsible for communicating the benefits of change to your employees and securing their support. Focus on their perspective—not just company goals. Employees understand it ultimately supports the business, but they also need to know they are an integral part of the change and will benefit from it.


2.    Make them feel heard:

  • Ask for employee input and help during the process.

  • Encourage personal ownership through inclusion.

  • Have a Q&A meeting and ask employees to email their questions prior to the meeting. Record the meeting, collect and transcribe all questions and answers, and provide a document to employees that they can reference in the future.

  • Continue to request feedback during the transition phase as well as after the implementation to create a continual dialogue.

3.    Garner excitement for new technology:

  • Position the project positively Frame it as an opportunity, not a disruption. Project kickoff, implementation, training, and launch should build up to an official celebration of transformation.

  • Make a compelling case for new technology—it makes employees’ work easier and reduces frustration. Automation improves workflow, reduces administrative waste, and allows employees to focus on their primary responsibilities rather than chasing approvers and missing information.

  • Articulate the professional benefits they can realize If you’ve clearly expressed how the change benefits them, explain how those benefits could translate into new skills, promotions, pay increases, bonuses when KPIs are met (or exceeded), and new strategic opportunities for the future.


4.    Provide adequate training and show people how to embrace the shift:

  • Gamify the change process to create a healthy inter-office competition and make it fun.

  • Develop an awards program that rewards those who demonstrate the right behavior.

  • Make training short, focused, and frequent—shorter training sessions or modules are more effective for maintaining employee engagement.

  • Make the training interactive—don’t just talk at people; make them accountable for their own learning.

  • Foster camaraderie—you’re all in this together. This creates a capable, cohesive team. Training the entire department at once also puts everyone on equal footing.


5.    Keep the momentum going after the system is implemented:

  • Remember that Rome wasn’t built in a day—set KPIs that focus not only on the end goal but also on progress milestones. This helps keep employees motivated and focused on continuous improvement—after all, it’s a journey, not a destination.

  • Keep the lines of communication open. Continue to send updates on the project and facilitate the feedback loop with users. Get everyone together for follow-up Q&As to hear what’s working and what’s not.

  • Extend gamification and rewards past go-live and acknowledge the best performers.

  • Discuss the project in phases, so employees become comfortable with the idea of on-going change and optimisation.

Change management is all about positioning. When the management team can effectively position the need for automation, the potential results, and provide a positive vision for it, resistance to change reduces and support for transformation increases. Replace fear with trust by leading the way.

We can help make change easier

Our team of business consultants has been helping AP teams transform for years and they are always excited to take on new challenges. Reach out and download our whitepaper: Change Management for P2P – Best Practices to Apply Now.

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