Let's Talk ERP

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Change Management and ERP – how are they connected, and why does it matter?

Recently, there has been a lot of talk about change management in the media, and within businesses. For every circumstance in life, changes are inevitable, and it wouldn't be different within a company. Whether it is governmental or technological, it is important to keep up with these changes in order to continuously grow your business and build long-term relationships with your customers and stakeholders. But, why is change management important?

Change management matters

Change management goes hand in hand with risk management. It consists of going beyond the implemented change and ensuring that every employee in your company is aware of the upcoming changes, their repercussions and how to deal with the newest software, law, or system.

The last thing you want when implementing changes within your business is for it to cause distress to your stakeholders, or that the implementation fails. To avoid an internal crisis, it is important to educate and prepare your employees for the upcoming updates. In order for a member of your organization to embrace the change, they must understand it – and this isn't different when it comes to implementing an Enterprise Resource Planning (ERP) system in your company.

ERP systems can bring many benefits to your business; however, it is important to understand that implementing new software comes with new processes, responsibilities and needs. Employees' learning curves will affect how the system works, and it is vital that every member of your company is prepared to learn and adapt to it. The biggest mistake in failed ERP projects is the lack of organizational change management.

How can you prepare?

Communication is the most important aspect of managing your ERP implementation. People won't embrace what they can't understand, and if they don't understand what is at stake, it is likely that they won't have a positive attitude toward the changes. Therefore, it is important that you educate your employees so they feel confident in the upcoming changes.

Organizational readiness will ensure that issues and opportunities are captured across your company. It is important to educate your employees on why you have chosen to move to the new system, how the company will benefit from it and, most importantly, how they can benefit from it.

Oftentimes, employees may be fearful that they won't be needed when new software is implemented. However, ERP systems allow you to use your human resources to collaborate with valuable tasks, rather than spending hours going through administrative chores – it is vital that your employees understand that. By understanding that they can move on to a new project, or work in a different area of your company, your internal stakeholders will feel motivated and will have a positive attitude towards the change.

You can work with team leaders and with the marketing department to plan a communication strategy that will bring enthusiasm and buy-in. To communicate the changes to your employees, set up a presentation, workshops or Q&A sessions that will ensure that everyone is aware, and comfortable with the ERP implementation.

Training

Another important change management technique is to train your employees to take advantage of the ERP system. This will facilitate the implementation, as well as allow you to know where each member of your company stands within the process.

You can appoint an ERP Change Management Team, with "super users" and "trainers" that will be responsible for educating and preparing the rest of the team to make the best of the implementation. Another great way to motivate your employees is to set achievable milestones that will make the training process interesting and rewarding.

When implementing an ERP system, change management is essential – it will ensure the success of the implementation, as well as the acceptance and happiness of your employees.

At Phoenix Systems, we are aware of the challenges that come with implementing a new system. However, if you implement an organizational change management process, you are one step closer to a successful ERP implementation! We hope that this is helpful and, if you have any other questions, please feel free to contact us at This email address is being protected from spambots. You need JavaScript enabled to view it..

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