KVP Group Blog

5 Key Elements of Change Management in ERP Implementation

Implementing an Enterprise Resource Planning (ERP) system in your organisation will bring about several unanticipated changes.

You may expect your ERP installation to either fail or be faced with resistance if your team does not equip itself with the required Change Management plan to overcome these obstacles.

A key concept in Change Management is to prepare your team for any shift by using tools like planning, training, and communication to prepare them for the change.

Change Management may seem to be a simple concept, but managers and executives often overlook it.

If your ERP installation does not include a comprehensive Change Management plan, there is a good chance that your system will become a source of frustration for your employees.

Consequently, business processes and responsibilities suffer from unwanted impacts, resulting in a decrease in your organisation’s overall performance.

Related article: Companies Need Change Management Competency

5 Important Change Management Attributes in ERP Implementation

In a recent blog, we discussed the significance of Change Management in the workplace. 

However, before you can begin developing your Change Management plan, you’ll need to be aware of the essential components that will form your overall approach.

By knowing the elements that contribute to a successful Change Management plan, you will be able to obtain a holistic picture of your team by integrating your people, business processes, and IT systems.

And, after you’ve shared this strategy with the rest of your organisation, your team members will have a greater understanding of the changes taking place inside your business processes and a better understanding of the new ERP system.

The following are the five Change Management characteristics that are necessary for a successful ERP implementation:

1. Management Buy-in

When deploying a new solution, getting buy-in from senior executives across all offices and regions is critical. While workers may be required to report to the headquarters, their loyalty is to the organisation where they find themselves.

An ERP implementation will fail if not supported by the whole leadership team from the start. An executive who invests in an ERP solution is involved in establishing objectives and resolving problems that arise before, during, and after deploying your ERP system.

According to industry experts, benchmarks should be used to define objectives and identify project accomplishments when evaluating the effectiveness of an ERP installation.

2. Training Methods

We need to create change management strategies to handle the transfer of the employees to the new ERP system and the identification of who will serve as super-users and trainers. Before implementing an ERP system, a comprehensive training plan should consider regional differences, testing sites, and other factors.

When it comes to an ERP installation, the absence of a comprehensive training plan may have significant consequences for the project’s overall success. Therefore, end-user training should be continuous and include courses, workshops, and hands-on sessions from the beginning to the end of the implementation phase.

Access to industry-specific business process modelling may become easily accessible to ensure that employees get continuous training. KVP-Solution assists teams in their ongoing training by easily accessible access to industry-specific business process modelling resources.

3. Engaging Staff Members

The inability of most ERP systems to handle increasing employee engagement is one of the most significant shortcomings. Organisational evaluations are essential because they guarantee that all problems and opportunities are identified and documented across the organisation.

Even though this sector is often neglected owing to budget limitations, the additional cost needed for engaging and involving workers results in measurable advantages in the long term. 

When a suitable set of methods is used in conjunction with the appropriate level of expertise, project sponsors, and team members, it is possible to achieve the level of employee involvement and buy-in needed for a successful ERP installation.

4. Open Communication

Internal communication is essential in every organisation, yet it may be challenging to do in practice. For example, lack of communication throughout an ERP project is a common source of resistance to new solutions, as workers struggle to answer their queries over the project’s duration.

When project managers can answer more queries, the solution seems to be more appealing to the workforce as a whole.

Naturally, it is becoming more essential than project and communication teams to establish a strategy for giving updates and educating managers on how to communicate with their respective teams effectively. The message is significantly influenced by the language, culture, and degree of education of the end-users.

5. Work Culture

Cultural transformation should be regarded as an essential element when it comes to successful ERP organisational change management.

Many ERP initiatives have been considered failed because of employee reluctance to change, particularly in unionised settings or organisations with workers who have been with the business for an exceptionally long time.

The ability to recognize these indicators early in the process allows you to make informed decisions and prepare for the future.

Differentiations in language, education, and demographics may significantly affect how workers comprehend and perceive the aims and objectives, risks, and advantages of an enterprise resource planning system. To effectively prepare for change, this must be taken into account.

Are you currently implementing an ERP solution? Reach out to us for a Change Management consultation.

Read our previous blog: The Power of Integrated Software for Window Manufacturers