Imagine this: it’s the morning of go-live on your new ERP system. For months, your project team has been working hard – researching the right ERP technology, mapping processes, running training sessions and preparing data sets. The new system is ready to go… but only half of the office has turned up for work today.
Why?
Change management is the process of helping the people in your organisation adjust to (usually major) change– neglecting it can jeopardise your entire ERP implementation. In this post, we cover everything you need to know to establish an effective – and lasting – change management process during your ERP implementation:
Change management is a structured approach to guiding teams to a new state – whether that’s a new IT platform, an organisational restructure or a major compliance change. It involves planning, implementing and managing changes to achieve specific business goals while minimising resistance.
Compared with all the other hard deadlines and technical tasks required during an ERP implementation, change management can often be seen as a lesser priority, a one-off or something that can bit slotted in between other more important milestones. Be under no illusion – change management is vital.
Not only does major change happen more frequently than ever before (most organisations have undertaken at least five in the last three years), most employees struggle with it (only 39% feel capable of responding to business changes). This means that not prioritising change management throughout your ERP implementation project is setting up for failure. Your staff won’t understand why a new ERP is necessary, how it benefits them or even how to properly use it – and in some cases, will flat-out refuse to do so.
Communication is a fundamental in change management. Tell your staff what is happening, why and how it will benefit both the wider business and them directly (the ‘what’s in it for me?’ factor) – and tell them:
Coming up with a communication plan will help to prevent slipping into bad habits, such as relying too heavily on emails or forgetting to mention key milestones or achievements throughout the project. Remember to use an array of communication channels. While emails are convenient, face-to-face remains the most effective way to communicate with staff during a major change, in particular line-manager briefings and leadership town halls.
Bring staff on the journey by getting them involved in the project. In the early days, asking for input on what they need from an ERP or current frustrations that could be fixed is a great way to position the change as a solution, not a problem and help them feel valued.
Source: KPMG
Early on in your ERP project you’ll have identified your objectives – and even have a defined scope of works (SoW), outlining exactly what is being delivered and how. But despite meticulous ERP project planning, many organisations fail to plan for the impact that a new ERP system will have on their organisation.
To help plan for the change, it’s a good idea to pre-empt potential roadblocks – for example:
The technology that staff have to use on a daily basis to get their jobs done can have a massive impact on their satisfaction and stress levels (91% are frustrated by workplace tech). Think of training as your best strategy for ensuring employees adopt your new ERP system – staff who are fully comfortable with your new ERP system will have less anxiety, be more productive and feel more productive.
To ensure that your ERP system training is comprehensive and suits all learning styles:
As your ERP project ramps up, so should your change management efforts. Go-live is the critical point of any ERP implementation project and, once the new system is live, it’s important to keep staff engaged and positive about the changes (especially when experiencing teething issues).
To make sure staff don’t avoid using the new system or fall back into old ways of working:
The point of all this hard work, planning and communicating is to end up with a significant improvement for your business, your teams and your customers. Taking time to review and compare your new versus old ERP system and its impact on the business is the only way to fully understand whether the change was a success. Being able to prove that it has paid off will help to convince any staff who are still struggling to accept the new ways of working – as well as paving the way for future changes.
In the ‘people, process, platform’ framework, it’s almost always the ‘people’ that are neglected in major business changes (and an ERP implementation is definitely a major business change). But your ‘people’ are both the main reason for implementing better technology (to help productivity) and the key to its success (70% of IT projects fail because the ‘human factor’ has been overlooked).
The reality is that most of your staff will need help adapting to the major changes that come with a new ERP system. Prioritising change management throughout your ERP implementation will ensure that all aspects of your business – your process, platform and people – are aligned and ready for growth.
• The Secret to Setting Up a Successful ERP Project Team
• How to Set Up Your ERP Implementation for Success
• Ready or Not? Preparing Your Business for ERP Go-Live