Just How Important is Change Management in ERP Implementations?

An Enterprise Resource Planning (ERP) system integrates all data and processes for an organization into one unified system for planning and managing it operations.  Because of its widespread impact on people and how they do their work, significant effort needs to be devoted to managing the change from the old operating environment to the new.  Numerous studies from firms like McKinsey & Co, Ernst & Young, and CSC have all reported that about 75% of organizations fail to achieve the business objectives they set out to get from most technology projects.  

 

And most of these failures are attributed to not adequately addressing the people part of the overall technology implementation.  The change management part of an ERP project is unquestioningly important, but all too often overlooked.  Overlooking it frequently results in the system’s failure to meet the targeted business objectives, missed deadlines, cost overruns, and decreased employee morale.  These results stem from employees’ unwillingness to change to the new system, unfamiliarity with the new system and how to operate it, perceived leadership non-support of the new system, and sometimes downright overt resistance to using the new system. 

 

But understanding it’s important to address change management issues isn’t enough.  What, exactly, does a person heading up the change management part of an ERP project need to be thinking about?  

 

Here are 12 pragmatic tips, divided into two categories, for change managers in ERP projects.  Additional details for the tips in each category can be found by clicking on the link directly below the final tip in each category.

 

Infrastructure-related (setting up conditions for success)

1.  Help achieve the targeted business results.  

2.  Ensure alignment of business objectives among all key project groups.  

3.  Connect the change management project plan to the technical implementation plan.

4.  Establish multi-faceted communications with feedback loops.

5.  Ensure clear role definition for implementation and operations tasks.  

6.  Help shape the training strategy and results.  

 

For details of the infrastructure-related tips of ERP change management click here.

 

Interaction-related (direct interactions key people and groups)

1.  Engage stakeholders appropriately.  

2.  Help employees manage workflow and mindset transitions.  

3.  Connect people with the new work and each other.  

4.  Develop, connect, and support a change agent network.  

5.  Create organizational energy for implementation & operation.  

6.  Build capabilities for future change.  

 

For details of the people-related tips of ERP change management click here.