In any enterprise resource planning (ERP) implementation project, managing change is a critical component of a successful project. An ERP will impact employees across your organization – employees will need to learn a new system and adapt to changing business processes. An ERP will also impact how departments function and work together – process flows will need to be defined and implemented. 

Why ERP change management is important

1. Minimizes Resistance to Change:

Change often introduces uncertainty and fear among employees. A well-implemented change management strategy helps identify potential sources of resistance and provides a structured approach to address and minimize resistance. This proactive approach reduces the likelihood of disruption during the ERP implementation change management process.

2. Increases User Adoption:

Successful change management ensures that end-users understand the reasons behind the change, how it benefits them, and how to adapt to the new processes. This understanding promotes higher levels of user adoption, leading to a smoother transition and increased productivity.

3. Enhances Communication:

Effective communication is a cornerstone of change management. Clear and consistent communication helps build awareness, align expectations, and foster a sense of involvement among stakeholders. This, in turn, reduces misinformation, rumors, and anxiety associated with the change.

4. Optimizes Project ROI:

Change management contributes to the overall success of a project by optimizing return on investment (ROI). When employees embrace the change quickly and effectively, the organization can realize the intended benefits of the new system sooner, leading to improved efficiency and competitive advantage.

5. Aligns with Organizational Goals:

Change management ensures that the implementation aligns with the organization’s broader goals and objectives. It helps in conveying the strategic vision behind the change, ensuring that every individual understands how their role contributes to the overall success of the organization.

6. Reduces Downtime and Disruptions:

ERP change management helps in planning and mitigating potential disruptions during the implementation process. By addressing concerns and challenges in advance, organizations can minimize downtime, maintain operational continuity, and prevent negative impacts on customer service and satisfaction.

7. Builds a Positive Organizational Culture:

Change management fosters a positive organizational culture by promoting openness, flexibility, and adaptability. Employees feel supported and empowered when they are provided with the necessary tools, resources, and guidance to navigate changes successfully.

8. Encourages Continuous Improvement:

Change management is not just about implementing a particular change; it also encourages a mindset of continuous improvement. By learning from the challenges and successes of previous changes, organizations can refine their change management processes and approach future initiatives with greater confidence.

9. Facilitates Employee Engagement:

Engaged employees are more likely to be committed to the success of the organization. Change management involves engaging employees in the decision-making process, giving them a sense of ownership, and recognizing and celebrating their contributions, which fosters a positive and supportive work environment.

The Change Management Plan

We strongly recommend customers develop a Change Management Plan to effectively handle individual and organizational change throughout the project lifecycle. This plan, rooted in the Prosci ADKAR Model, should emphasize the importance of addressing awareness, desire, knowledge, ability, and reinforcement at both individual and organizational levels. We cannot overstate the importance of change management in ERP implementation, and here’s what your plan should consider: 

Preparing for Change

Before diving into the implementation process, a thorough assessment of the organization’s readiness for change is essential – the nature of the change, its impact on stakeholders, and potential challenges should be identified. Consider your current system landscape, previous ERP implementation experiences, and the satisfaction level with existing systems.

Sponsor Assessment & Roadmap

Identify key sponsors and their roles with respect to change management. Consider when and where their presence is crucial, and key messaging they need to deliver as an active sponsor throughout the project.

Communication Plan

Effective communication is vital for stakeholder engagement. A communication plan should outline communication methods (emails, SharePoint communication hubs, in-person meetings), frequencies, and authors, tailored to different stakeholders. Regular updates, presentations, and documentation ensure everyone is informed and aligned. 

Celebration Plan

Identify key milestones and plan for how achievements will be celebrated throughout the project lifecycle (shout-outs on company-wide meetings, pizza parties, gift cards, awards, etc.)

Managing Change

Resistance Management 

Resistance to an ERP project can take many forms, notably:

• Disagreements during training or during the development of new SOPs, unwilling to listen to other’s perspectives or change current-state business processes
• Not attending meetings, arriving to meetings late/ leaving meetings early
• Developing workaround procedures to revert to previous business processes
• Absenteeism
• Negative attitude

Resistance can be addressed in the following ways:

• Provide coaching to managers as to how to identify and mitigate resistance
• Provide frequent project updates/communications 
• Develop a feedback mechanism so that concerns can be escalated to the project team
• Remove barriers by offering in-depth and ongoing system training, computer literacy training (if required), and developing a post go-live support plan
• Share success stories throughout the project
• Articulate a clear, shared vision for the project

Training Plan

A thorough training plan is required to ensure impacted employees are ready to use the ERP upon go-live. The training plan should identify when employees will receive training, from whom, and how (i.e. classroom style or one-on-one training, pre-recorded videos, user guides, process flow documents). Consider how you will measure when an employee is “ready” to record transactions in the live system. Who will employees go to for support? 

Reinforcing Change

Reinforcement focuses on measuring the success of the change, assessing individual and group behaviors, and implementing corrective actions.

Measuring Changes in Behavior

Metrics such as adoption rates, utilization reports, compliance measures, proficiency levels, employee feedback, and help desk requests can be utilized to gauge the effectiveness of the change.

Reinforcement Mechanisms

• 365 Vertical recommends regular refresh training is conducted to reinforce learning and address evolving needs post go-live.
• Consider implementing an ERP User Group to drive collaboration and continuous improvement post go-live.

Change Management Effectiveness

Consider tracking the effectiveness of change management activities (i.e. adherence to the ERP Change Management plan)

In ERP implementation projects, change management is pivotal for success and to maximize the benefits of the new ERP system. By focusing on awareness, desire, knowledge, ability, and reinforcement, organizations can navigate change effectively and achieve long-term success.