Challenge of ERP Implementation: Q and A with Rick Maurer

Question: ERPs seem like a good idea, so why is return on investment so low?

Answer: Resistance often kills many of these new systems. Even though the promise of what an ERP can do is high, the planners often fail to look at how the users are likely to view this "improvement." ERPs take away the old tried-and-true ways of working. Even though some of these cobbled together systems aren't all that good, people understand them. When they are asked to give up what they know and what they can rely on, you often get resistance to using a new software system.

ERPs also threaten the fragile balance of power and control. The old system allows departments and some individuals to control the type of information that gets out ? and control the way data gets disseminated. The new system destroys all of that and that can be threatening.

One manufacturing plant has spent millions on an ERP, and kept throwing money at the technical parts of project, with no success. What they failed to see was that the technical problems they faced were minor compared to the human reactions against these changes.

Question: What are the biggest pitfalls when planning an ERP?

Answer: The biggest pitfall by far is assuming that ERP implementation is solely a technical and financial challenge. The human side of change is the most neglected, and consequently most likely to result in cost and time overruns, or failure to meet the intended goals.

Question: How can we increase the odds in our favor?

Answer: Plan for the human part of the ERP. There are three major reasons why people resist a change. They don't get it (Level 1), they don't like it (Level 2), or they don't like you (Level 3). Any one of those can stop the ERP dead in its tracks. And what you need is the opposite of all three: people need to get what it's all about, they need to like it and be willing to take part in making sure it is a success, and they need to have confidence in you.

Create strategies that speak to people in their own language to help them understand why these changes are critical to your organization. Spend a lot of time building the case for the change before you get into the often mind-numbing details of the ERP process itself. This attention to Level 1 is necessary but not sufficient for success. You must attend to the other two levels as well.

If people react against the change, find out why. It is usually fear. In some cases people are afraid that the new ERP will cost them their job. If that's the case, why would they support it? You need to find ways to engage people to help you address the downside of the change. For example, if people are afraid that the new system will not allow them to customize and be as responsive to customers, invite them into the planning to ensure that the new system provides the features they need.

And if they don't have confidence in you or your team (Level 3), you must do everything you can do demonstrate that you are worthy of their trust. This probably won't happen over night. One meeting won't do it. You need to prove yourself time and time again. No, it's not easy, and working on Level 3 issues can be exhausting, but it may be the only game in town if you really want people to make a commitment to you and the new system. Good luck.

Rick Maurer. Rick is an advisor to organizations on ways to lead Change without Migraines?. He is author of many books on change including Why Don't You Want What I Want? and Beyond the Wall of Resistance. You can access free articles and tools at http://www.beyondresistance.com.

---

Managing Performance: Don?t Let Slackers Bring Down Your ?A? Players

As a manager, it is your job to ensure that the work gets done effectively. Coaching and discipline are unpleasant tasks. However, it must be a part... Read More

Service Level Agreement (SLA) Boot Camp

Service Level Agreements, or "SLA's" are tricky but useful mechanisms for managing the risk of an on-going relationship with IT service providers. Unfortunately, most SLA's that show... Read More

Dont Get Side-Tracked By The Nay-Sayers

You, the Entrepreneur, are 'normally' a type-A individual. One who has little patience with the establishment ~ he or she likes to do it 'his/her way' and... Read More

Employee Performance - If You Want the Best, Get Personal!

This is a story about a man and three dogs.I walk a lot - usually for about half to three-quarters of an hour most mornings. I see... Read More

Outsourcing NOT Just for Big Business

Outsourcing has become a controversial issue and a hot topic among presidential candidates this year. But have you stopped to think how your business can benefit from... Read More

Innovation Management: Radical Innovation

Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are other useful definitions in this... Read More

Strategies for Planning and Conducting Effective Meetings

Did you know that business executives spend about half their time sitting in meetings? In fact, 40 to 50 percent of their working hours are consumed by... Read More

Employee Motivation: Make Everyone A Cheerleader For Your Company

Do you manage by walking around? What do you see? People excited about their job or people just going through the motions? Here are seven ways, that... Read More

Humor in Business

With the advancement of computer simulators, anybody can repeat all the business routines before he goes to the field, and have the opportunity of relaxing from the... Read More

Riding the Waves to Success

Last week I was confused and frustrated about a few things related to one of my businesses, and a bit upset with myself and "The Universe." As... Read More

Three Ways to Transmit Loud and Clear

The heart of a fool is in his mouth, but the mouth of a wise man is in his heart. --Benjamin FranklinHow often have you said something... Read More

Understand What Flows Through Your Business to Find Improvement

I remember once seeing a cartoon which showed two people working a counter. On the wall behind them was a sign which read, "Quality Work, Low Price,... Read More

Focus on Outcomes to Keep Your Business On-Course

Did you know that an airplane in flight is off course nearly 98% of the time? No flight is completed in a straight line from Point A... Read More

Why I always Keep my Promises

Integrity is very important to me, and I try hard to 'do unto others as I would wish them do unto me'. It hasn't always worked that... Read More

The Role of the Machine Metaphor in Mixed-initiative Organizational Leadership

"Can This Marriage be Saved?" So reads the title of the cover story in the August 15, 2005 issue of BusinessWeek (www.businessweek.com). The article describes the seven-year... Read More

Hiring Productive Employees: A Checklist for Assessing Their Appeal

The characteristics of job applicants have a strong influence on whether or not they get hired. Their characteristics also indicate the level of their productivity. If you... Read More

Re-Discovery Procedures for Building Effective Management Systems: Phase V

Now we turn the corner to our final phase: Re-Discovery.Last year marked the 200th anniversary of the expedition of Lewis & Clark, and much has been written... Read More

10 Ways To Maintain Profits In A Slow Economy

1. Sell more back end products to your existing customer base. You already created rapport, trust and proved your credibility to them.2. Make it a practice to... Read More

How To Decrease Downtime and Increase Productivity

All maintenance activities of the workforce must be documented, this includes breakdown repairs, callouts, preventive maintenance, replacement maintenance, overhauls, and Testing & Inspection work. Maintenance work by... Read More

Setting Direction Within an Organization

FINDING DIRECTION: An organization can't succeed without direction. Direction means having clear goals and guidelines; set goals and guidelines for staff to follow. When staff direction is... Read More

Credibility - A Golden Key to Becoming More Influential

You have been named a new leader in your organization, or you are a long time leader with some new people in your organization. Or maybe you... Read More

Employee Orientation: Get New Hires Off To a Great Start

The good news is that a new hire orientation program offers an opportunity to build a lasting impression of the new company. The bad news is that... Read More

Experiences of Management Coaching (Part 2)

In our experience, we have found that there are several reasons managers fail to get employees to see and acknowledge that they have a problem.They assume. Many... Read More

The Seven Cs: Partnership Danger Signs - The 6th C: Changing Vision

A series of articles exploring the seven critical areas that can indicate a partnership is in trouble.The 6th C: Changing VisionIn order for a business to be... Read More

Know Your Client - The First Rule of Business Coaching

Whilst the very best coaches have undertaken independently accredited training and or have years of experience with clients, new self-assessment questionnaires are coming available which is evolving... Read More

Motor Vehicle Policy and Your Employee Risks

It is becoming more common for employers to require employees to use their personnel motor vehicles for business use. Reimbursement for business use is commonly by way... Read More