Why Change Management Is Needed in Impactful ERP Implementation

Why Change Management Is Needed in Impactful ERP Implementation

An ERP implementation can go wrong in many ways if not fully prepared. Learn how change management reduces risks associated with its implementation.

ERP Implementation: Is Your Business Ready for It?

If you’re in the midst of deploying an Enterprise Resource Planning (ERP) software in your organisation, congratulations!

But how’s the ERP implementation working out for you?

When manufacturers and distributors plan their respective ERP implementations, it is easy to be blindsided by the benefits.

After all, streamlining your business operations and gaining full visibility of your processes in a single platform will benefit your organisation in the long run. And with the help of a proper software implementation partner, you’re basically all set.

That goal, however, can only be met if your employees are on board from the start.

Your Employees Matter, Especially in ERP Implementation

Employees have no reservations about reaping the benefits of ERP implementation. However, how that ERP software is implemented is what has these employees concerned.

Businesses typically operate under the guise that employees will be able to easily adapt to the changes brought about by the new ERP system

It is important to remember, however, that people have a difficult time breaking away from routines. Not everyone is at ease with the idea of experimenting with new methods.

While some employees may have an easier time catching up with ERP software, others may completely reject it.

As a result, one side is using technology, while the other is still using Excel spreadsheets and post-its.

The software you expected will help your company grow, instead becoming a burden on your team.

Your implementation is wasting resources, decreasing productivity, and charging unnecessary costs, ultimately leading to ERP failure.

Fixing the Issue With Change Management

Change management is the concept of preparing your organisation for any type of change by utilizing tactics such as planning, training, and communication.

However, it is more than simply informing your employees about the impending changes.

With change management, you can get a better picture of potential “red-flag” issues that need to be addressed.

Depending on their work culture and team behavior, different organisations may employ different change management strategies.

However, change management essentially identifies potential risks associated with your ERP implementation and determines how to overcome them.

Understanding these risks will give your employees a better understanding of how to properly implement your ERP software.

Change management results in a solid plan, a better understanding of your business, and the right players to make this ERP implementation a success.

Related Article: Companies Need Change Management Competency

Reasons Why Change Management Is Important

Change management is a must in organisations, but how critical is it? Without change management, the following are some of the ways your ERP implementation could go wrong:

  1. Users are not given the opportunity to provide feedback to management, resulting in a demotivated team that is overburdened in adapting to rapid changes
  2. Organisations focus solely on system processes, but fail to consider how to integrate them into their business culture (e.g. how things get done)
  3. Employees are not given critical information such as the implementation timeline, company expectations, and ongoing updates
  4. Inadequate communication and engagement regarding the new system’s features and the benefits it will bring to the team
  5. As new processes and data are introduced to users, they are thrown into an unprepared learning curve.

Related Article: 5 Reasons to Adopt Change Management

At the End of the Day, Don’t Be Afraid of Change

Everyone is afraid of taking the road less traveled. It’s intimidating, especially if you have no idea what dangers await you along the way.

However, if you have a map, a compass, and the tools necessary to follow that path, you are fully prepared to overcome any obstacles that may arise.

Change is not for everyone, but it is unavoidable. We can never completely ignore change. Instead, we should embrace change, both good and bad.

Change, when managed properly, enables your employees to maximize the full potential of your ERP with minimal disruption.

And we’re not saying you can’t be resistant to change. In fact, resistance can be beneficial if you know how to channel it in a positive direction. Nothing like a little pushback to get management to pick their battles wisely.

For more information on Change Management in ERP Implementation, feel free to reach out to us.

Klaus Knops

Klaus Knops

Klaus is an experienced manager, CEO and entrepreneur with over 30 years in the construction industry as a manager and consultant, having lived in Europe and Latin America.

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