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Unlocking Resistance to ERP Deployment — An Overview of Change Management.

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For any organization, the successful implementation of an Enterprise Resource Planning (ERP) system can greatly improve operational efficiency and data management.

Yet, phrase it as you may, after many years in the industry and countless research reports from Forrester Research and others — one thing is for sure: The biggest challenge when implementing ERP is never the technology but the people involved. Change aversion amongst users is a primary reason that all CFOs will tell you about their failed ERP programs. This is where efficient change management becomes essential.

The following are three of the most important steps you can take to dismantle resistance in your organization when preparing for ERP implementation.

1. Articulate Vision and Benefits Clearly

While resistance is natural, and everyone will not have the same perceived level of acceptance, one powerful way to help reduce that pushback before launch is to communicate a compelling vision on how to obtain ease of use from your ERP system. Employees have to KNOW WHY the change is a MUST and what benefit it brings them or/and their organization. It can be done by:

  • Visible and Active Leadership: The project should be visibly and actively endorsed by senior leaders themselves, actively participating in the process and reflecting that they, too, are committed to change.
  • Transparent Communication: Communicate the progress of the project to the audience through regular updates and open discussions regarding aims and advantages.
  • Personalized Messages: Create custom messaging to address the major concerns and interests of each employee group.

Example: A mid-sized manufacturing company was facing huge resistance to a newly implemented ERP. The leadership team did town hall meetings, explaining how the new system would reduce manual workload and improve accuracy in inventory management, thus leading to increased sales and profitability. Such transparency and engagement reduced fears and helped gain support for the project.

2. Involve Employees Early and Often

While implementing an ERP solution, you can minimize resistance if employees are involved from the very beginning. If they feel their input is taken seriously, employees may welcome the change. This can be done through:

  • Inclusive Planning: Where cross-functional teams can be set up to provide input during the planning and implementation phases.
  • Pilot demos/meetings: Conduct pilot meetings with selected teams, test the new working system, and have feedback before full implementation on a large scale.
  • Feedback Loops: Create regular mechanisms for feedback relating to the employees, collect the same at intervals, and act on them.

Example: When a global construction company upgraded its ERP, there was early resistance from employees. By setting up an advisory panel of representatives from different departments, useful input was realized, and some of the problems were resolved at the outset. Participation bred ownership and minimized resistance.

3. Provide Training and Support

Provide extensive training and full support to remove all sorts of potential resistance against the new ERP system and to help employees get on board with the transition. They need to be confident about using the new technology and how it will affect task performance. Implementation strategies include:

  • In-Depth Training Programs: Develop mixes of online and in-person ways of training associated with paces and learning styles.
  • Support Resources: Establish accessible resources, such as FAQs, user guides, and help desks, that will help support employees in this transition process.
  • Continuous Learning: Provide ongoing training and development opportunities to ensure that staff is fully productive with cloud ERP updates and best practices.

Example: A retail company had invested heavily in training and support when it introduced its new ERP system. There were practical workshops, comprehensive user manuals, post-go-live experts onsite to address questions, and a dedicated help desk. The result was that employees felt ready and followed through with assistance, causing an easier transfer to the new system, which led to faster adoption.

Conclusion

Overcoming such resistance to ERP implementation is a question of effective change management that demands a human-centric strategic solution. Organizations can address resistance and successfully implement an ERP system by articulating the vision, engaging employees sooner rather than later in change processes, as well as spending on training and support.

After all, technology is only as effective as its ability to solve real challenges—and it’s truly useful only when people put it to use. Putting change management efforts in place aids in getting your team motivated, willing, and able to learn the new system that will take you further as an organization.

November 19, 2024

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Jeroen Dessing - Sr. Account Manager

A seasoned Account Manager at Intwo, excels in driving client success through innovative AI and cloud solutions. His passion for D365, OpenAI, and Insight Selling transforms complex challenges into streamlined, future-ready opportunities.