Time for a change...

I never thought I could be comfortably associated with an industry so littered with stories of failure. ERP (Enterprise Resource Planning) systems have been implemented and supported globally for all sizes of organisations in the public and private sectors. Various pieces of research indicate the satisfaction rates of customers and key users is around the 40% mark. The remainder are not getting the expected value from their ERP systems.

Now logically it is possible to achieve satisfaction with ERP systems because 40% of organisations are doing so. So where do organisations go wrong? There are several components to successful ERP systems including: effective leadership and management; quality project and support teams; managing customer expectations; standardising and streamlining business processes; measuring performance and value for money; effective ERP reporting; empowerment; business ownership; and tight change request control. Probably the most important component is business change management.

Traditionally, change management around ERP applications projects means:

• Communicating features and benefits of the new system
• Training, education, and external information programmes
• New organisational structures, policies, and procedures
• Monitoring and evaluating the organisation's performance

But this is not the whole change picture. There are 8 reasons for failure of change programmes,

• Too self complacent before and after ERP implementation
• No effective leadership alliance
• Lack of a vision and strategy
• Ineffectively communicating the vision
• Barriers to the new vision - people, structure, culture etc.
• Lack of immediate progress
• Complacency returns
• Change is not embedded in the organisation's culture

Of course, we need to know how to combat these reasons for failure and deliver effective and successful change management around ERP systems.

Winning the Change Game

Here is a framework for effecting successful change management around ERP systems:

• Firing up the Team - Create a sense of urgency and crisis. ERP systems are a source of competitive advantage. You need stretch ERP targets and accountabilities including business ownership at executive level.

• Leaders on and off the pitch - Create from the powerful and influential and make them visible. Especially at executive level across all functional areas. This will inspire the project and support teams including third parties.

• A Vision of Glory - Make the vision feasible, desirable, focused and flexible. Define where you will be in 1, 5 and 10 years time leveraging all the potential benefits of your ERP system. Including competitive advantage, automation, quality delivery of business information and enabling change in how business is done.

• Roaring on the Team - A simple message using many channels with leaders setting an example. Communicate continuously and clearly the vision.

• Battling and Dominating - Align systems and the organisation to the vision, and deal with troublesome managers and other barriers to success.

• Goals - Celebrate and communicate all short term wins.

• More pressure! More goals! - Create more change, more success and more leaders.

• The Winning Mentality - Make successful change part of the culture.

In an increasingly competitive world, organisations must leverage all the potential benefits of their ERP systems. The days of ERP implementations being the responsibility of the IT function and third party vendors are drawing to a close. As are the days of technology driving change rather than the needs of the business. A more embracing, dynamic, business-driven, people- oriented change management process will make a significant contribution to future ERP successes.

It’s time for a change...

www.DriveERP.com

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