Choosing to implement an Enterprise Resource Planning (ERP) system is a big step for any business, and it’s one that deserves some thoughtful consideration. After all, it’s a resource-heavy project with its own set of challenges.
Implementing an ERP system is a significant change that touches every part of your organisation: processes, people, and technology. That’s where ERP Change Management comes in, offering a structured way to guide everyone through this transition smoothly. So, while picking the right ERP system and executing a solid implementation plan are crucial, the real key to success lies in having a well-thought-out strategy that helps individuals, teams, and locations move seamlessly from the old system to the new one
In this article, we’ll dive into the differences between implementation and change management, and we’ll also highlight some key elements of successful change management.
What is ERP change management?
Change management is all about planning, executing, and supporting changes within an organisation. It enables everyone to get comfortable with new processes, technologies, or structures. The main goal is to keep things running smoothly, whilst boosting the success of these changes, and make sure everyone transitions easily.
Who is responsible for ERP change management?
Usually, your chosen ERP partner will handle the ERP system implementation, while your team will take charge of managing the change process internally.
ERP-related changes that need managing
Implementing a new ERP system is more than just introducing new technology into your team’s daily routine. While it aims to enhance how everyone works, there are some significant changes to consider. It’s not just about the technology; business processes and workflows might shift, which could impact job roles and responsibilities. You might also see some changes in the organisational structure. And let’s not forget, there could be updates to Key Performance Indicators (KPIs) and other performance measures. That’s why it’s crucial to include your employees in a change management plan during the ERP rollout.
The difference between implementation and change management
Without a solid change management plan, ERP projects, or any digital transformation efforts, can fail or underdeliver. It’s crucial to realise that while change management and ERP implementation go hand in hand, they’re two different things. Here is the difference:
- ERP Implementation is all about the technology side of things. Think systems, streamlining business processes, automating workflows, and integrating data. It involves the strategic planning, installation, configuration, and rollout of an ERP system, like Sage X3, within a company. The aim? To make sure the software is perfectly tailored to fit the organisation’s needs.
- On the flip side, change management focuses on the people and their behaviours. It’s about reducing resistance, getting everyone on board, and ensuring smooth user adoption through training and communication. This process includes effective communication, thorough training, engaging stakeholders, managing resistance, and making sure everyone fully understands and embraces the changes.
Key ERP change management strategies
Rolling out changes to your team at the last minute, like during ERP user training, can really ramp up the risk of resistance. But if you get everyone involved from the get-go, you can tap into their valuable insights about how things run day-to-day in each department. Most individuals are open to changes that bring real benefits, like cutting down on time spent on routine tasks or boosting customer service with real-time data access. By giving specific roles to employees outside the ERP project management team, you spread the workload and make it easier to share knowledge throughout the project. Picking out key employees in each department as “super users” and getting them on board early can turn them into enthusiastic advocates for the system.
Plus, everyone must understand why the new ERP system matters to the organisation. You can make this happen by ensuring that management’s support for the project is both visible and consistent. Below are some key elements of successful ERP change management to keep in mind as you move towards a fully operational ERP system:
- Stakeholder engagement
- Assessing organisational readiness
- Develop a change management plan
- Training & skill development
- Managing resistance to change
- Communication strategy
- Post-implementation support
- Measure success & feedback
- Cultural change
For more information on barriers to change and in-depth information on each of the above change management strategies, download our ‘Change Management during ERP implementation‘ guide.
