Installing a new ERP System, or even upgrading an existing one, is a big challenge for any business. According to statistics as many as 50-70% of installations actually fail! Many of these failures happen, because the project team did not implement an effective change management strategy. Change management is the strategic process of getting the users’ acceptance of the new system and the new way of doing things.
Many users are slow to accept change, or will outright reject it, reducing productivity, or even worse create animosity in the workplace. This is why change management is very important for any new ERP implementation. It can make or break the project, no matter how well it is planned and executed.
How do we manage this resistance to change? The most important point is communication. A company should be transparent about the project and at the same time listen to the concerns of their employees. Basically your employees will want to know why the change is being made, what the change is and when they can expect it to happen. Knowing these things will lessen their anxiety and allow them to be prepared for when the big change actually happens. Of course this does not guarantee that there will be no resistance, but it is a big step towards a smoother implementation of the new ERP software.
It is of course equally important to listen to any concerns the employees may have. Many times they are the ones “in the trenches” and they will notice potential problems with the new system, especially veterans who have been with the company for a long time. I have seen cases where the decision makers replaced a custom built system that accommodated all the little “quirks” in the way the company did things, with an off-the-shelf ERP system and almost failed. They ended up spending a lot of money on consultants and third-party add-ons trying to get back some of the functionality they needed.
Change is of course inevitable when a new system is installed, as it brings it’s own “culture” to a business, but a little change planning will go a long way in making the project a success.
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