Enterprise Resource Planning (ERP) solutions have never been more powerful or more capable to meet the needs of a vast array of business types and sizes. In fact, the common issues associated with ERP implementations - such as budget overruns, project delays and operations disruption - are all trending downward. But analysts still report a number of businesses struggle to realise the value of their new solution.
Are businesses still missing an important piece of the implementation puzzle?
Are you ready for change?
The decision to change or upgrade ERP solutions is often a response to issues experienced by C-level executives or key decision makers, not always felt or understood by other employees. In fact, resistance to change has been cited as the greatest barrier to successful ERP implementation by Deloitte.
While every business reacts to change differently, helping employees across an organisation understand the decision through effective change management can significantly affect the success of an ERP implementation.
Unfortunately, businesses aren’t prioritising change management.
Why is it so important?
A survey of over 200 organisations at various stages of changing ERP solutions showed only 20% are placing “intense focus on organisational change management.”
Effective change management ensures staff understand and support change, are appropriately trained in using the new solution and that requirements are being met across the business.
It’s easy to see how resistance can slow discussions, lead to gaps in solution requirements and leave staff unprepared for changeover. Ultimately, project deadlines are delayed, business disruption increases and project success is compromised.
Keeping in mind a few core principles in developing a change management plan can make a powerful difference in the success of ERP implementation.
Consult across the whole business
Consulting right across your organisation is vital for ensuring an ERP solution is able to meet the diverse needs of each and every department. Initial discussions around meeting the basic requirements are important when investigating ERP solutions and identifying how it will complement department roles.
But keeping the lines of communication open through regular project updates, feedback solicitation and status meetings involving each department all throughout the scoping and implementation process will also see an organisation more capable of responding to change and minimise disruption.
Make the benefits clear
‘New’ can be a frightening term for some employees, particularly when you consider the impact of an ERP upgrade: new software, new processes and new responsibilities. And with so many drastic changes, employees will often be wondering “what do I get out of it?” Clearly communicating what these new roles and responsibilities entail, while also highlighting the benefits associated, can lead to greater project buy in and receptiveness to change.
Learn from the past
How do you know if your business culture is one resistant to change, or one ready to embrace it? Simply look at how staff have handled change in the past. What were the challenges? Have certain departments shown themselves more resistant to change than others? What strategies can be learned by those who were less resistant to change? Understand where departments faced challenges in the past and develop your change management strategy around overcoming them.
Focus on business success
At Sybiz we believe in understanding what makes your business unique, delivering the right solution to help you grow and succeed. Find out how Sybiz ERP solutions can transform your business and provide greater benefit to individuals.