The migration or new implementation of enterprise resource planning (ERP) systems are some of the largest projects most businesses will undertake. They present challenges across multiple domains, from technology and infrastructure to process optimization, to data migration, to software development. As with any project that brings together people from so many areas of an organization, likely including multiple external vendors, it’s critical that organizational change management plays a large role in any such project. Let’s review some lessons from prior implementations to increase our chances of success.
Starting Change Management Too Late
An organization that performs regular small software updates and process changes will often plan to do a round of training at the time of launch and will consider this adequate “change management.” To be truly effective, change management efforts need to begin at the inception of the project. An ERP implementation will touch virtually every aspect of a company’s operations. Because the ERP is central to so many business operations, it’s critical that the organization spends plenty of time educating the entire organization about the goals and plans for the implementation or migration. There must be an early and sustained effort to develop sponsors and change champions throughout the organization to support the project.
Treating an ERP Project as a Technology Project
In many organizations the IT group may hold ownership of the ERP, it’s critical that new implementations or migrations be driven by the business. It may be that a version deprecation or other technical challenge will dictate timing of a change; however, the business needs to drive the change organization-wide by making it clear the benefits the business will achieve from the effort. If the organization cannot identify clear business benefits, the implementation effort is unlikely to achieve the support needed to be successful.
Ignoring Process Change
Any major change to a company’s ERP system should be treated as an opportunity to review processes throughout the organization. When business processes do not fit with the operation of the new software, it’s important to fully evaluate the best course of action for the business. Should you change the process, or modify the software to fit the existing process, or some combination of the two? It’s critical to define an evaluation process for how these decisions are made so that you can communicate to end users why they were made. To get complete buy-in, make sure that relevant stakeholders are heard. If software changes are going to impact employee productivity, make sure to evaluate if process performance metrics need to be adapted to the new situation.
Ignoring Layers of the Organization
Change management efforts should address all layers of the organization throughout an ERP implementation. It’s easy to focus on executive stakeholders as they can have an outsized impact on the project. Front-line staff are often targeted with training but neglected in early communications. And often, middle managers are not given enough tools to help them support the change with their teams. It’s critical that each layer of the organization receive regular, relevant communications from the project, and that each layer is given appropriate opportunities for feedback on the project. People will only feel ownership of the project if they are truly included in all stages.
Unrealistic Go-Live Expectations
With perfect implementation, the best training, and top-notch staff, it’s still almost certain that go-live on a new ERP system is going to come with a temporary decrease in productivity and possible business interruptions. Strong change management efforts can help your organization prepare for this. Front-line staff and middle management should be prepared for these possibilities and supported by additional staff if needed. Vendors and customers should be informed if there are possible impacts to orders or shipments. Change management staff should closely monitor the go-live so that they can help surge resources to any areas experiencing greater-than-expected challenges.
Not Treating Change Management as an Integrated Workstream
Change management isn't something you “add on” to an ERP implementation. It should inform decisions about all aspects of the project, from configuration to testing, training, rollout strategy, and post-go-live support. When change management is bolted-on, it becomes a checklist of communications and training events rather than a strategic approach to organizational transformation.
Give your people the best chance of success by integrating change management efforts throughout your project!
To learn how FarWell can help your organization’s ERP implementation, contact us.
