Enterprise Resource Planning (ERP) systems touch every part of a business, typically requiring an average of 18.4 months and around 3-5% of revenue to implement. Companies invest heavily in ERP systems for the promise of increased efficiency, productivity, visibility, better forecasting, and enhanced data security, all while reducing costs. ERP systems are often seen as essential for a company’s future. As Nem Fontanilla, a seasoned expert with 27 years in global transformations, advises, organizations should “Design the ERP with the vision in mind and leverage it to accelerate the achievement of your team’s vision, not to enable the current reality.”
However, the journey to these benefits is often fraught with challenges. A friend of mine, the CEO of a midsized company, is in the second year of what was supposed to be a six-month ERP cutover. His team’s struggles with closing the books and increasing frustration mirrored another friend’s experience, who described his team’s reaction to their ERP implementation as “organ rejection.”
If your organization is battling ERP implementation issues, here are some common reasons why:
Common Challenges
“No time for that.”
- Employees are already stretched thin with their day-to-day responsibilities. Adopting a new system requires significant attention and energy, akin to taking on another full-time job.
“The best person for this project already has a job.”
- To ensure the new system works well, you need your best people—those who know your business inside out—on the ERP team. This creates a dilemma: who will manage daily operations while they’re focused on the future? Furthermore, these essential employees might worry about their job security post-implementation.
“It’s good enough.”
- The existing system, despite its flaws, works well enough. Teams are accustomed to it and operate on autopilot. Convincing them that an overhaul will be beneficial is challenging, especially when the current system meets their immediate needs.
Feeling Defeated? Here’s What to Do
Embrace the suck.
Accept that employees will resist the change. Significant transformations are inherently disruptive, and your new system will feel like an intruder.
Resist cliché communications.
Avoid generic elevator pitches and “talking head” videos of executives praising the ERP system. These approaches only reinforce skepticism. Instead, develop a consistent message that is tailored by each speaker to their specific audience. Focus on personalized, relevant communication.
Communicate based on impact.
Employees care most about how and when they will be affected. Over-communication can lead to information overload and disengagement. Tailor your communication to deliver just what matters, just enough, and just in time for each team or individual.
Say the thing.
Be transparent and upfront, even with unpleasant or uncertain information. Clearly outline the scope, timelines, and any potential impacts, including layoffs if applicable. Specificity dispels confusion and builds trust.
Show them this time is different.
Employees often resist change because they recall past failures. Highlight what makes this ERP implementation different, such as a new approach, a different team, an adjusted budget, a refined scope, updated code, or a revised timeline.
Create fresh starts.
Long ERP projects can feel like an endless slog. Capitalize on any natural beginnings, such as new quarters, phases, or milestones, to rejuvenate the team. Celebrate these points to help everyone recognize progress and success.
Focus on one small win.
Identify a simple task each role can perform in the new system, like logging in, and ensure it’s a positive experience. This builds familiarity and confidence, showing employees they can succeed with the new system.
Double down on From-To.
Design end-user readiness activities with the user’s perspective in mind. Help them understand the transition from current to new processes in detail. Document and train employees on where their familiar data and functions are now located in the new system.
Prepare to invest in cutover twice.
There’s a transition state between the old and new systems that requires temporary support materials and training for current employees. These materials will become obsolete after the cutover, but they are crucial for ensuring a smooth transition. Later, develop steady-state materials for new employees who will only know the new system. Skipping the transition investment forces employees to figure things out independently, leading to unpredictable and inefficient adaptations.
Conclusion
Implementing an ERP system is a significant undertaking, often met with resistance and frustration. However, with careful planning, transparent communication, and a focus on gradual, manageable changes, you can overcome these challenges. The investment in an ERP system is substantial, but with the right approach, your organization can achieve the desired efficiency, productivity, and long-term benefits. As Nem Fontanilla emphasizes, turning on the ERP is just the beginning. Continuous support and preparation are essential for realizing the full value of the new capabilities.
About the Author : Harry (Hemant Kaushik), Elite Global Advisor & Business Consultant
Harry (Hemant Kaushik) is an American global advisor and business consultant, renowned for his strategic insights and high-impact consultancy. He specializes in advising and coaching elite individuals, including business tycoons, world leaders, and top corporate leaders. His expertise has been sought by Presidents, Prime Ministers, influential politicians, CEOs, and industry leaders worldwide.
Recognized as one of the Top 10 Global Advisors and Business Consultants by PWC International, Harry has transformed the lives of thousands across more than 100 countries with his unparalleled guidance. He has also been honored as one of the Top 10 Life and Business Strategists, shaping the success of global business leaders and visionaries.
Harry’s influence has earned him prestigious accolades, including recognition by the CEO Times Magazine as one of the 10 Most Powerful People in Global Business Consulting, Business Times News as a Top 10 Business Consultant, and Business Weekly Times as one of the Top 10 Business Advisors in the World, offering consulting services to billionaires, celebrities, and high-net-worth individuals.
A Wall Street Times cover story famously dubbed him the “Elite Global Advisor & Business Consultant” for his deep understanding of business dynamics and leadership strategies. Based in San Francisco, United States, Harry is widely respected for his international economic expertise, market analysis, and strategic business acumen. His collaborations with global brands and corporations have positioned him as a thought leader, contributing to the business world through insightful articles on global economic trends.
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