ERP & Change Management – Get your people on board!

Implementing and ERP solution typically involves substantial change and as such the management of the change should not only be considered from a technical perspective but also from an internal H.R viewpoint.

Change is an environmental constant and as such change management is something which organisations of all sizes need to consider in order to ensure that they achieve an effective fit which is the basic premise upon which strategy is formulated.

“Change management is the coordination of a structured period of transition from situation A to situation B in order to achieve lasting change within an organisation”.

BNET Business Dictionary

Change is an ever-present component of small business ownership. The ability for small business owners to effectively manage change lays the groundwork for growth and helps build the foundation for the development of a positive corporate culture.
Change is not just another business event, it is a mental, emotional and physical process within which you need to consider and pay attention to the needs of individuals and the organisation as a whole.

Successful implementation of change management calls for proper planning, special leadership, and communication skills.

A huge aspect of integrating ERP is human based. Implementing an ERP will bring in changes to the way people work within the organisation, processes will change and there may be rationalisation of responsibilities within departments. All this will may evoke resistance from the employees and this has to be managed effectively before, during and after the implementation of the ERP package. Top management has to lead the way in propagating the reasons for the implementation and the business benefits that can be expected by implementing a new ERP package.

If the employees are not educated and informed about the benefits of the ERP system and assured about the security of their jobs by the top management, they will start believing in the rumours that float around and will either resist or sabotage the ERP implementation.

Don't underestimate the importance of people working in cross-functional teams to the success of the project. ERP implementation failures are attributed more often to people than to technology.