What are the main sources of resistance to change during an ERP implementation and how do you overcome them?

In ERP implementation, the main resistance often comes from people not wanting to change their usual way of working. To overcome this, I focus on clear communication, explaining the benefits, and providing solid training. It's about showing them how the new system makes their work easier and supports the company's growth.

In my perspective, one of the sources of resistance is the lack of awareness In many cases an ERP program is branded as a top management initiative which invariably creates a big divide. The focus on financials , returns and gains leaves everyone else in the organisation aloof or creates resistance or worse apathy. I have experienced that one of the most successful approaches is to have the stakeholder needs and impacts understood well. The benefits need to be explained or campaigned for every stakeholder group. This ensures everyone who is needed to understand the why behind the what and get behind the idea. In addition to minimising resistance it enables everyone to be involved and contributing their best increasing results

I feel most people resist change due to "fear". They are usually worried about how a new ERP will affect them. - Will their job role change? - Will they be able to keep up with the new technology? - Will they be kept informed about the project? - Will they be asked to contribute to the project? - Will it mean more work for them? The best way to overcome the resistance is to commence early with your communications to the team. This means preparing the right messages, to be delivered at the right time to the right people. This requires a well thought our OCM Strategy which will include a Training Needs Assessment, Communication Plan and Training Plan and Schedule guided by an experienced Change Leader who has empathy for people.

Los proyectos de implantación o migración de ERP generalmente surgen por decisiones de la alta gerencia de las organizaciones y es por esto que probablemente los usuarios finales tienden a resistirse o a ser poco participativos, es importante involucrarlos desde fases tempranas del proyecto para que de esta forma no sólo sean parte del proyecto sino que sean defensores y propulsores del mismo.

I've been selling ERP for nearly 13 years and "User Involvement" has been one of the key reasons why ERP projects fail. Esp the end users are key and they only get involved during training of the ERP. They should be involved well before then. Involve them in the demonstration stage when you are evaluating systems. And get them to assess and score and provide feedback on their preferred!

It is amazing the impact the contract can have. I once worked on a project where the implementation vendor agreed to a fixed cost and the customer tried squeezing in all sorts of functionality even if it was not required for go-live, but might be needed in the future. Focus was lost on main objectives, data and test cases were not ready and the project was delayed by months unnecessarily. It became an adversarial "Us vs. Them" relationship rather than a partnership focused on delivering benefit to the business. Maintain focus on key benefits to effectively prioritize everyone's energy.

Organisational culture can significantly influence the acceptance of an ERP implementation. Resistance often stems from a fear of the unknown and a comfort with the status quo. To overcome this, we prioritise building a change-positive culture by engaging employees early in the process, ensuring they understand the benefits and how the change aligns with the core values and mission.

Apart from factors mentioned here, important to note thay Organisational culture greatly varies from Industry to Industry. Its extremely important to understand nuances of an Industry for effectively overcoming resistance to change. Industries such as manufacturing are more prone to change resistance than others, and they have their reasons. Thus an important aspect of overcoming this resistance is appreciating industry nuances and create a strategy largely suited to that industry!

Conduct cultural alignment workshops. These workshops can facilitate open discussions among employees, leadership, and project stakeholders to bridge cultural gaps and ensure that the project aligns with the organization's overarching mission and values.

I Do agree with Mr. Martin Singaram. It's a common observation that end users can face challenges with new systems and processes, particularly when the benefits and controls are not clearly understood communicated or. Over two decades in the industry can certainly reveal the critical areas that require attention during implementation. Ensuring that these focus areas are not overlooked is essential for the successful adoption and operation of any new system. Continuous feedback and improvement are key to addressing these issues and enhancing user experience.

This is a huge bucket. Unfortunately, whatever goes wrong will all be pushed to this bucket. First of all project approach and people structure will be crucial. In my view ERP project has 2 distinct stages. 1. Solution suitability and Framework. This is like designing a car. We need an ERP domain expert. Bring out clearly the features, customizations, workflows, approvals, compliance etc., Full blueprint ready. 2. Data Migration, Training, Implementation, and go-live. This is like the mass manufacturing of cars. We need a Project manager with zero ERP experience. (Anyone with ERP experience in the project will be dead). His or Her job is to execute the blueprint.

Two buckets of change management on ERP and systems projects: easy and hard. Easy change management: educate, inform, train, and inspire the user community. New improved capabilities, once learned, are usually welcomed and eventually embraced. Hard change management: ERP platforms shift workloads between teams and departments. Some team members may rightly identify an efficiency decrease. The justification is the whole is better off. For example, an ERP might shift the work of invoice account coding from invoices received by AP to requisitioners at time of order. From the point of view of an engineer or sales person who now must code spend requests at time of order, the new ERP brought more work and responsibility to the daily routine.

Implement a communication cascade strategy to ensure that information about the ERP project is effectively disseminated throughout the organization.

Change management is vital for mitigating resistance during ERP implementation, especially when it stems from uncertainties. Address lack of awareness through comprehensive communication, keeping stakeholders informed about the change's reasons, benefits, and implementation roadmap. Combat skills-related resistance with robust training programs and support mechanisms. Engage employees early, fostering a sense of ownership, and address concerns promptly through feedback channels. Establish a dedicated change management team to provide continuous support and adapt strategies based on evolving needs. Proactive change management facilitates a smoother ERP implementation, increasing the likelihood of success.

In my view, effective change management is the linchpin for successful ERP projects. It's not just a process; it's a strategic approach to navigate the complexities of organizational transformation. Neglecting this aspect can lead to a cascade of challenges – confusion, anxiety, and resistance among employees. Personally, I advocate for a dedicated change management team and a meticulous plan covering all ERP project aspects. Monitoring progress and being agile in adjusting the plan ensures adaptability, fostering a culture where change is embraced rather than resisted. It's an investment in the people aspect of the change equation, crucial for sustained success.

Technical issues often spark resistance during ERP implementation, stemming from concerns about disruptions and unfamiliarity with new technologies. Mitigate these challenges by conducting thorough risk assessments and transparently communicating mitigation strategies. Provide extensive training to ensure users are proficient in navigating the new system, and establish robust support mechanisms. Involve experts in the planning stages to anticipate and proactively resolve potential challenges. Communicate the benefits of the new technology, emphasizing improved efficiency and data accuracy. By addressing technical concerns comprehensively, organizations can minimize resistance and enhance the overall success of the ERP implementation.

The effectiveness of a project relies on individuals driving the work. A single skilled resource can significantly alter the project dynamics, as observed in various projects I've been involved in. Regarding technical challenges, a proficient team ensures meticulous planning, preventing issues, and, fundamentally, most technical problems trace back to skill gaps.

Let's take example - an ERP implementation occurred when a manufacturing company migrated to a new ERP system. Shortly after the go-live, users experienced frequent system crashes and data errors, disrupting production schedules and causing frustration among employees. The technical team quickly identified the root cause—a compatibility issue between the ERP system and the company's legacy manufacturing machines. To overcome this resistance to change, the technical team collaborated with the ERP vendor to develop custom patches and updates to resolve the compatibility issue. Additionally, the team provided comprehensive training to users on how to navigate the new system effectively.

The importance of UAT lies in its ability to identify and rectify potential issues or discrepancies between the system's functionality and the users' expectations. By involving end-users in this process, any usability or functionality problems can be addressed, improving the overall user experience and system performance. Successful UAT not only boosts user satisfaction but also reduces the likelihood of post-implementation disruptions and costly fixes. It serves as a critical quality control checkpoint, ensuring that the ERP system aligns with the organization's objectives and operational processes.

Technical issues, whether real or perceived, can significantly heighten resistance to a new ERP system. Concerns over data migration, system integration, or usability can create anxiety and undermine confidence in the project. Addressing these technical challenges head-on, with clear communication and effective problem-solving strategies, is crucial. It’s important to set realistic expectations, provide ample training, and ensure that users have access to technical support to address any issues that arise. Demonstrating a commitment to resolving technical issues promptly and effectively can go a long way in reducing resistance and building trust in the system.

Frequently, not all leaders in an organization wholeheartedly endorse an ERP project, often citing past negative experiences, apprehensions regarding risks and complexity, concerns about business disruptions, and perceived time commitment, among other reasons. To navigate these challenges successfully, it becomes imperative to emphasize robust project sponsorship and implement effective project and change management strategies. Project sponsors, in particular, play a pivotal role in articulating the ERP vision, outlining anticipated benefits, and fostering continuous leader commitment throughout the entire implementation life cycle.

I work in the SAP ecosystem and see very often there is lack of ownership by leaders to drive change. ERP Programmes come at great $ cost and potentially high risk if not adopted by a business. Program Structure, Change Management, Data Migration and Training are the keys to success I think. you can build the most amazing solution but if a business doesn't use it, it becomes worthless....This is also true with a shambolic implementation as users of the system already hate it before it goes live.

The leadership support is critical in the post go-live phase of the ERP solution. For e.g. if the head of sales continues to review the pipeline in excel sheets, no salesperson will adopt the CRM module of the ERP system. The leadership should first adopt the ERP for business intelligence & reports and then drive the change management throughout the organization.

In an ERP Implementation, there are multiple factors of resistance and can be categorised in 4 pillars/themes: 1. People: I am used to the old system, much easier and straight forward. 2. Process: If the current process works for me, why change? 3. Tech: Old system is very handy and does not need these workarounds and APIs 4. Data: The data is completely stuffed, we can't progress with the new solution. There are multiple methods to overcome these challenges but the simplest 2 are regular playbacks/engagement and staff training. Happy to have a further conversation and explore the challenges and solutions.

When leaders are fully engaged and demonstrate their endorsement of the ERP project, it sends a clear message to employees that the initiative is a priority. This endorsement trickles down throughout the organization, encouraging a culture of acceptance, enthusiasm, and accountability. Leaders can also allocate the necessary resources, both in terms of budget and personnel, to ensure the ERP project's success. Their guidance and vision are essential in defining the project's goals and aligning them with the strategic objectives of the organization. Furthermore, leadership buy-in provides the necessary guidance and direction during times of change and uncertainty.

Some of the reasons for user resistance are: 1. Statutory Compliance requirements are not handled 2. Complex configurations that increase data entry. 3. Required reports are not available on time 4. Complex and ill-designed access controls 5. Important data is not visible in the new system. For example Payables Invoices are not available when the user tries to make a payment against them. 6. Fear of job loss 7. Consultant not communicating why ERP processes are better than what they are doing currently. I have faced all of the above in my career.

Recognizing the influence of organizational culture and addressing any misalignment through change management and effective communication is vital to navigating the challenges posed by ERP implementations and ensuring they harmonize with the prevailing cultural values and practices.

One of the biggest hurdles I've seen is that people just aren't interested in switching to a new system. They're comfortable with the old one and don't see the need for change. There can be a general mistrust of the new ERP system, especially if there have been bad experiences with tech changes in the past. Sometimes the organization's culture itself is resistant to change, preferring traditional methods over new ones.

The organizational culture significantly influences the change management process. It is vital to ensure that all stakeholders align with the required changes to prevent resistance from occurring.

Prior to the outlining of ERP implementation , the Organisation runs in silos with information held within different departments. This leads to political undertones and bureaucracy which brings down efficiency. An ERP implementation would necessarily break down these walls this there would be a lot of resistance. The key to handle such situations is to get a buy in from all stakeholders and explain the mechanisms of implementation. Secondly it would be the responsibility of top management to convey their vision and mission clearly to all stakeholders and take them along this major change .