Acquiring a new ERP (Enterprise Resource Planning) system is, undoubtedly, a big change for any business. It can fundamentally transform the way an organisation operates, introducing completely new workflows while eliminating others through automation altogether.
A change of such importance is not always welcomed with open hands, though, particularly in well-established organisations with large teams. This is where a lot of ERP projects fail, unable to successfully navigate the change management they require.
Fears associated with ERP-driven change
ERP implementations introduce changes in every aspect of organisational life, some less obvious than others. This isn’t simply swapping one system for another - it’s a fundamental change that affects processes, role, culture… Here’s what you need to understand:
Processes
One of the main reasons businesses acquire ERP software is to optimise and standardise their processes. This means that everyone must align themselves with new practices, sometimes fully changing the way certain tasks are completed.
To some teams, this might feel like a slap in the face: “What do you mean we are completely changing our procurement process? We’ve been perfecting it for years!”. It’s a difficult psychological shift, especially for employees who’ve become experts in the established ways.
Therefore, efficiency or integration is not the first thing that comes to mind for them. Instead, it’s initially a rejection to the change and worries that their hard work is no longer being appreciated.
Roles
This is, perhaps, the most unsettling aspect. ERP systems automate a lot of tasks that previously required manual intervention.
For instance, certain accounting tasks that were managed on Excel Sheets and took hours to complete may now be a matter of a few mouse clicks. Monthly reports that were manually produced by the managers are now readily available and visible across all departments.
It’s only natural that this makes people wonder “how will this affect my role in this company?”... After all, if something they spend hours doing can be automated, are their skills still required? If so, what tasks will be filling the time gap?
Culture
Corporate culture changes are something that many businesses don’t usually foresee. However, they are just as important. ERP implementation can really break down the departmental barriers, integrating everything in one platform and allowing teams to collaborate much more seamlessly with one another.
Improving collaboration and shared accountability may seem like a positive change to all. But, for organisations that have a lot of departmental silos going on, this shift could also be a big pill to swallow.
The stages of ERP change management
Change management in ERP projects is something that requires a very structured and well-planned approach. It must start long before the actual implementation project begins and continue afterwards. So, let’s separate this process into 3 main stages:
Pre-implementation
The moment you decide that an ERP system is necessary and begin your search for the best match, you should also start building the foundations in terms of the change management. This includes:
- Stakeholder involvement - First and foremost, all of the key stakeholders (i.e. investors, management team) in the business should be on-board with the change. Start by addressing ERP acquisition with them, making sure they’re not just “okay” with it, but fully behind it. At this stage, it’s good to have a clear agreement on the strategic alignment of the software, budget required, expected outcomes, the people who will lead this project, etc.
- Wider communication - Next up, start introducing this topic to the wider teams. However, instead of using generic messaging, like “this is an exciting change”, present them with clear reasoning and objectives. Even better, direct it at specific teams, helping them understand how a new system might make their day-to-day tasks easier. You want to reassure them of their role and value in your company, before any unwanted rumours can take place.
Now, the way you communicate with stakeholders is not the same as the wider teams. While stakeholders want to hear about company goals, financial outcomes, employee productivity, process efficiency… the employees are more concerned with the effects on their individual tasks.
In other words, announcing how great automation will be financially to a senior warehouse manager may be tone deaf, making them wonder if the company is only focusing on finances and neglecting the employees.
Starting the communications early on gives everyone plenty of time to express their concerns and ask questions. It’s not yet a “done deal”, but rather a decision that everyone can be involved in.
Besides, collecting feedback can also be incredibly useful when selecting the most suitable software (perhaps one of the department managers had an excellent experience with a specific ERP software in their previous job, and vice versa).
Managing the transition
Once implementation begins, change management now shifts from preparation to active support and intervention. Here are the tips for this stage:
- Phased rollout - Have a clear roadmap for your ERP project, with defined phases and deadlines. This will help create a more structured approach and ensure a timely completion across the whole organisation.
- Support network - Depending on the size of your business, each department should have a dedicated person (a project leader) they can reach out to with any questions or concerns.
- Training - Proper training sessions are non-negotiable in ERP projects and should start way before go-live. Even if the system is intuitive and straightforward, training helps ensure that its tools are used to their maximum capabilities.
- Productivity and skill concerns - As the teams are learning to use the new ERP, create realistic expectations around this transition period. A short-term dip in productivity is absolutely normal and your employees shouldn’t feel personally responsible for it.
- Continuous communication - While the pre-project phase focused on preparations and expectation setting, rollout is all about real-time updates and problem resolution. The communication should be strategic yet transparent.
Sustaining change after go-live
Change management doesn’t end the moment your new ERP goes live. Businesses must continue monitoring the progress and working closely with the teams to resolve any new issues. They key things here are:
- Monitoring metrics - Have a set of KPIs (Key Performance Indicators) that you are able to monitor pre-ERP and post-ERP. It will give you a clearer indication of the project ROI (Return on Investment) - both tangible (e.g. financial) and intangible (e.g. customer satisfaction).
- Ongoing support - There should be technical support in-place at all times, in case of any errors or other issues. If you don’t have such resources in-house, ERP implementation partners normally offer such support services.
- Celebrating success - Do not underestimate the importance of small wins! Share any stories of departments who’ve successfully adapted the new ERP and are seeing significant benefits. Present your employees with metrics that showcase how you’re improving your business efficiency and hitting common goals.
- Continuous improvement - An ERP system is never completely “finished”. It should continue to evolve together with the changing business needs, otherwise it will become outdated over time. Collecting regular feedback from your teams will give you an understanding of what still works well and what’s missing.
Final word
ERP implementation is as much about people as it is about software. Your employees will be affected most by this change and they will become the primary users of the system too. Therefore, change management is a hugely important part of the project, leading and supporting your team through any uncertainties.
More often than not, successful change management = successful ERP projects.
Looking for experienced Odoo ERP implementation partners?
With a lot on your plate already, let us handle the technical parts of your project. As official Odoo implementation partners, we have a certified team of specialists ready to help you with all things ERP.
Our comprehensive services include consulting, business analysis workshops, Odoo implementation and custom development, training sessions, software support and maintenance.
Book your first online consultation, where we’ll discuss your unique business management needs:
