Do Small Businesses require Change Management when performing an ERP Implementation?
8/2/2011 at 11:00 am by
Change management is a structured approach to shifting/transitioning individuals, teams, and organizations from a current state to a desired future state. It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment.
Statistics indicate that over 60% of ERP implementations fail. A lack of change management is often a contributing factor yet it seems from my experience that usually only the Fortune 1000 or large organizations engage in Change Management when implementing a new ERP system.
The best way to answer this question is to assess what might happen if Change Management did not occur.
- Will employees buy in to the ERP implementation if they are not involved in the process right from the start?
- ERP implementations often change the work, daily tasks, or roles employees play in organization. Will employees be supportive of the implementation if the clarification of these changes is delayed?
- Will poorly trained staff use the new ERP system efficiently and effectively?
- Will changing business processes be effective if they are performed after the ERP implementation?
- Does your organization have team members that do not support the ERP implementation based on personal issues such as age, length of time to retirement, technology perceptions, etc…?
- Will measurable goals and objectives of an ERP implementation be achieved?
- Will proper and sufficient communication occur between all project team members before, during and post implementation?
- What will the result of the ERP implementation be if any of the above conditions are not managed?
An appropriate Change Management methodology will address all of the above items. None of the above items would be unique to a large organization. In fact, I have personally been involved in implementations for a small privately held company with less than 10 users where all of the above conditions existed. The original ERP implementer did not identify or manage any of the above and the organization was about to throw in the towel. It was very difficult and costly to bring any sense of success to the ERP project and to address these issues after the fact.
If your organization is considering an ERP implementation or any kind of project for that matter please consider if you organization is truly ready for the change.
About the Author
Glen is an accountant and Sage Accpac ERP and CRM expert. He has worked in the accounting industry as a public practice auditor, tax specialist, and controller. In the mid 1990s he moved his focus to technology and became an ERP consultant for Deloitte and Touche. He moved to Plus Computer Solutions in the late 90’s and purchased the company in 2003.
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