How Organizational Change Management Benefits Your ERP Implementation

  • 17 January 2018
  • CTND
Categories: ERP

supply chain example

The manufacturing workplaces and supply chains of today are evolving, and with that comes the shifting function of your company and its staff.

Manufacturers already know that implementing enterprise resource planning (ERP) is a step in the right direction, but there’s no question about it — implementation isn’t easy. In fact, analyst firm Gartner estimates that up to three quarters of all ERP implementation projects fail. It’s imperative that you get a good handle on the transition process in order to avoid becoming part of this statistic.

To facilitate the integration and rollout of this new and exciting technology, many teams opt for organizational change management. This involves hiring external consultants to create a strategy for how to best pair the experiences and expertise of your staff with the potential of this solution.

One of the biggest questions leaders have is whether organizational change management is truly necessary for their company. The value in bringing in consultants will differ based on your company’s vision, needs, and circumstances, but here are a few reasons the most successful and competitive manufacturers opt for organizational change management when implementing ERP.

You Add the “Human Factor” to ERP

ERP is a technology solution driven by the expertise of your team.

This “human factor” is a critical aspect often overlooked by companies adopting an ERP solution. Communication is key during this transition, and organizational change management consultants play an essential role in outlining why this shift is needed, and what it means for the company.

Consultants will personally ensure that your team understands the importance of your new ERP solution. This includes recognizing the immediate and long-term benefits: a smoother day-to-day work process, increased efficiency, greater agility in times of industry change, and more effective succession planning.

You Get Your Entire Team On Board

Just as you shouldn’t hire a new staff member without a proper onboarding procedure, the same applies for any new technology solution.

Failing to set aside the time and budget to implement ERP has dire consequences: 39% of workers are unsatisfied with ERP as a result of poor training plans, weak trainers, and a failed implementation plan; and this percentage is almost as high among executives.

ERP is a powerful tool, but your company can only reap its benefits if all team members are on board with its use. Part of a consultant’s job is to make sure employees understand that ERP automation isn’t here to replace them, but to help them become more productive.

While the right ERP solution will have a user-friendly, multi-platform interface, the adoption process can still be challenging, particularly for team members who aren’t tech savvy. Consultants provide staff with the hands-on, practical training they need to fully integrate ERP into their daily work activity. By working closely with your management team, consultants also ensure that your preferred learning deliverables are being accomplished.

You Can Capture and Re-Assess Best Practices

An ERP solution documents the best practices and expertise of your staff for the next generation of workers, but doing this requires capturing and logging the right information.

While a consultant’s expertise involves shifting company procedure from manual to digital, this also gives you an opportunity to step back and have external experts assess what is and isn’t working for your business. From an out-of-date invoicing system and poor communications to unmanaged knowledge transfer, consultants clean up existing procedures and ensure that your best practices are adopted by your ERP software.

You’ve already made the decision to let ERP empower your company — make sure you get the most out of the switch by hiring a team of organizational change management consultants to see your team through this important transition.

Contact CTND today and speak to our knowledgeable staff about how you can benefit from organizational change management at your company.

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