Whether it is a first-time implementation or a management system replacement, change management is one of the most critical aspects of ERP projects. While adopting a management system that performs better, or is better suited to business needs, is undoubtedly an opportunity, there are also numerous challenges that require effective change management, both from a technical and operational perspective and from a human resources perspective.
Often, in fact, changes, of any kind, encounter different types of resistance within the supply chain. Some are of an operational nature, and are all in all easily managed through the implementation of a good technical business change management plan. But other resistances depend mainly on customs and a certain reluctance to change that characterizes, to varying degrees, all working realities. For this reason, properly managing change is a fundamental part of any ERP software replacement or introduction project. Let’s look in detail at some of the tricks we can put into practice to make sure everything runs smoothly.
Change management from a technical perspective
As counterintuitive as it may seem to the uninitiated, in many cases it is more complex to deal with changing ERP software, or infrastructure in general, than it is to make a new installation.
Often, in fact, replacing an old system means having to deal with some intermediate steps such as data adaptation, standards upgrades and possibly integration with dated systems if replacement is not possible. In addition, the hardware used in the case of on premises solutions often turns out to have no residual value, which is another critical issue in terms of resistance to change.
In any case, the implementation of a new ERP system generally starts with a department or division. Typically, for reasons of expediency, one chooses to start with a low-volume or low-impact department so that any critical issues in the field can be contained and addressed without significant repercussions.
Beyond the specific technical challenges, it is indeed essential for proper change management that from a technological standpoint everything possible be done to make the transition to the new solution, or adoption of the system, as smooth as possible.
Keep in mind, however, that change management in an ERP project can be a long-term task, particularly in complex supply chains that require adjustments, for example from the perspective of workflows or interfacing with existing systems.
Managing change in ERP projects: human resources
While the technological aspects of adopting new ERP software are undoubtedly a challenge, we must keep in mind that the main critical issues will be related to the adoption of the new system and procedures. For this reason, in change management it is essential to pay proper attention to the involvement of staff at all levels, from management to operational positions.
Training and communication are the two pillars of change
One of the main issues to be addressed when there is a change taking place is that related to the proper communication of what is happening. Unfortunately, in many cases it happens that the main resistance comes from the feeling that the change is happening without giving the correct information to those who will have to use the solution in the field. Making sure that the goals and objectives are shared by the entire company, and especially giving everyone the opportunity to receive proper training, will be key to defusing this type of resistance.
Finding project “ambassadors”
The training and informative moments will also be very useful in identifying among the staff the project promoters, to be identified among the figures most positive toward the adoption of the new solutions. In choosing project ambassadors, it is crucial to make the selection as cross-sectoral as possible, so as to involve all levels and all departments in the company. If the company has a rewarding system in place, some of the targets may be related precisely to the ERP software change project.
We give feedback on the changes taking place
Solutions do not always have to be particularly complex to be effective. If there is resistance or difficulty to change, very often it is sufficient to give feedback on what is happening and of the benefits it brings. The skill here is in identifying which touch points are most important to each stakeholder. For example, a more agile and comprehensive reporting system may be appropriate for management, while simplification of a process or procedure will need to be shown to operational departments.
We provide a long-term vision
Resistance to change often exists because not all people within the company have the full picture. Providing a long-term view can both foster a sense of ownership and enable acceptance of any difficulties along the way, to the benefit of an end result whose benefits are evident and shared.
At Regesta, change management is a key factor in the development of all our SAP projects. For this reason, we call ourselves an IT company with people at the center.
