Managing change in an ERP Implementation: The Beginning
So you’ve decided to transition your company’s operations systems to a new ERP program. You’ve undoubtedly done your research and found the right software for your needs and your future growth plans. The kickoff starts soon, and you’re probably thinking: Now what?
Organizational change can be nothing less than traumatic for companies, and installing and launching a new ERP is no exception. After all, if done right, not only will the ERP make your processes more efficient, it will most likely change the way you do business. So how can you effortlessly guide your team through the transition, without losing staff, destroying morale, wasting money, and losing business?
- First, make sure that everyone who needs to know about the new program knows about the new program. In the majority of cases, that means not only management and executives, but also all employees who will be using the system, whether it’s an assembly-line supervisor, franchise owner, line crew, or receptionist. Ideally, the new ERP was chosen with the input of as many stakeholders as possible. Some companies who make the transition allow only their executives to decide which ERP package to purchase, neglecting to bring in key staff members such as the IT director and departmental managers.
- Adopt and embrace two distinct management styles: a top-down approach and a bottom-up approach. Many companies say that they value their employees and their opinions, but in practice they’re often ignored when it comes to implementing organizational change. If you expect a successful ERP implementation, you must know not only how to lead but also how to follow. Get feedback from everyone throughout the process, from beginning to the end, ideally directly from them. Meet with supervisors, who will know their direct reports best, and get their input on how the staff is handling the implementation. Listen as much as — perhaps more than — you talk, and make sure that your employees know that you value and will consider their input.
- Evaluate your staff’s preparedness, knowledge of the new system and attitude throughout the process. One of the most important things to remember when managing change is that you must be proactive when working with your employees during the process. Anticipate problems by assessing employee skills and attitudes and offering training and even counseling if necessary. Change can be wrenching, even painful, and the hallmark of a great change leader is knowing when to provide support when her team falters.
- Know the difference between valid concerns and issues, and demoralizing complaints. There will always be a few people who will not only resist change but actively campaign against it. Beware the poisonous effect on employee morale that bitter complaints will have and work hard to defuse them as soon as you hear about them, preferably by speaking directly with the disaffected employee(s) along with their supervisor(s).
- Identify key staff and outside consultants who will assist your organization by serving as designated “change agents.” They will serve as the point people to whom employees and supervisors can turn for their questions and concerns. Make sure that the people you choose have the temperament and communications skills the position requires.
- Remain flexible and open. Your employees need and deserve strong leadership during any kind of change, and one of the best things you can do is to maintain transparency and accessibility as you steer the company through the thorns of ERP implementation. Be willing to customize the program if employees provide a good business and productivity reason to do so. Avoid filtering information about any problems; instead, tackle them head on and perhaps even enlist the assistance of your staff to help you and your team resolve them.
In my next blog post, I’ll offer tips on finding the right “change agent” for your company. In the meantime, what are some of the experiences you’ve had in implementing ERP solutions in your company? What tip(s) would you offer to those who are about to start the process and don’t know where to begin in terms of change management?