5 Steps to Addressing ERP Resistance in Government Organizations
Avèro Advisors
By partnering with local governments, we empower their citizens and enrich the lives of everyone in those communities.
Resistance to ERP systems
ERP resistance in government organizations is common, but handling it doesn't have to be a bureaucratic nightmare. Demonstrating value, and providing the right kind of support ensures a smooth transition.? ?A core principle of ours at Avero is to treat people like they are people.??That means meeting people where they are at.??This is why having a structured approach to managing resistance is so important. In this blog, we're taking a look at 5 steps to make addressing ERP resistance a smooth process.
5 Steps to Ensuring a Smooth ERP Adoption
Find Sources of Resistance: Identify issues like political changes, regulatory requirements, and employee concerns through surveys, focus groups, and usage analytics.
Engage Stakeholders: Align key groups (executives, IT staff, end users) with clear decision-making structures like steering committees and working groups. Clear communication is the key to any successful technology implementation. ERP implementations are no exception.
Show Clear Value: Highlight specific benefits (e.g., reduced costs, faster processes) tailored to each group’s priorities. Communicating the value of the ERP is crucial. It can make adoption much more smooth if you can communicate how this new technology will make their day-to-day work easier and more efficient.
Provide Role-Specific Training: Customize training for departments (e.g., Finance, HR) and ensure ongoing learning through internal champions. This ties directly back to explaining the value clearly.??If users can see exactly how it is going to make their lives easier they are far more likely to adopt without resistance.
Roll Out Gradually: Start with smaller, simpler departments to test and refine the system before expanding. Starting small is key because it builds trust at the beginning of the implementation.
How to Handle Resistance to Change in ERP Implementations
Even if you follow a structured approach it's important to know that resistance will happen.??It's part of the process, the key is how you handle resistance and use it as an opportunity to build trust.
Step 1: Find the Sources of Resistance
According to Panorama Consulting, 42% of public sector ERP projects encounter active employee resistance. This resistance often stems from challenges unique to government operations.
Impact of Resistance Factors
Political changes and shifts in administration can disrupt project momentum and priorities.
Regulatory requirements and compliance demands can limit system adaptability.
Public scrutiny and fear of errors being exposed to citizens and media creates hesitancy.
Union involvement in labor agreements may restrict necessary process changes.
Cross-agency dependencies Integration with other agencies adds complexity.
To address these challenges, agencies need to identify specific concerns by examining recurring patterns of resistance. A 2024 NASCIO study highlighted that 78% of state CIOs identified "political challenges" as a key obstacle to ERP modernization.
"During a state government ERP implementation, using a structured assessment framework helped identify that 70% of concerns were legitimate issues requiring attention, while 30% were based on misconceptions that could be addressed through targeted communication".
But how do you identify where the resistance is coming from?
Three effective methods for identifying ERP resistance
Anonymous third-party surveys: These encourage candid feedback without fear of repercussions. This can give people a voice who otherwise would stay quiet.
Neutral facilitator-led focus groups: Discussions guided by an unbiased facilitator can surface hidden concerns. Again, giving a voice and a chance for everyone to voice concerns.
Usage pattern analytics: Analyzing how current systems are used can reveal inefficiencies and pain points. Identifying where the pain points are can point you in the direction of the resistance.
Avero Advisors found that combining anonymous surveys with facilitated discussions boosted honest feedback by 40% in government projects.
This process helps distinguish real issues from misunderstandings, laying the groundwork for Step 2's stakeholder engagement plan.
Step 2: Get Stakeholders on Board
Once you've pinpointed where resistance might come from, the next step is getting stakeholders aligned. For government agencies, this can be tricky. Multiple decision layers and competing departmental priorities often complicate the process. But this step lays the groundwork for the next phase, where you'll focus on showing clear value to users. Getting stakeholders on board can seem like a daunting challenge but it's another opportunity to show value and build trust when done correctly.
Identify Key Decision Makers
Government ERP projects involve a wide range of stakeholders, each with their own concerns. Here's a quick breakdown:
Stakeholder Groups and Main Concerns on How to Engage
Executive leadership cares about hitting strategic goals and seeing a strong ROI—focus on big-picture benefits.
Department heads want smoother operations—show them how it directly improves their workflows.
IT staff is all about integration and security—get into the technical details they care about.
End users need to know how their day-to-day work will change—hands-on demos go a long way.
Finance teams are focused on compliance and reporting—host sessions that tackle their specific concerns.
To keep track of these groups and their influence, try using the Power/Interest Grid. This method helps prioritize who to engage with and how.
Set Up Clear Decision Structures
A well-organized decision-making framework is key to managing input and ensuring accountability. A tiered approach like this can work well.
Executive Steering Committee
This group oversees the big picture, making sure everything stays on track. They step in to resolve disputes, approve major changes, and ensure resources are being used effectively.
Change Control Board
Their job is to review proposed system changes, keep the project scope in check, and make sure everything aligns with regulations.
Working Groups
These teams handle the hands-on work. They take care of module implementation, streamline processes, and run training sessions to ensure everyone is up to speed.
Regularly track engagement metrics to spot any gaps in support early. Keep all decisions documented and transparent - this builds trust, especially during transitions. It's also essential to consider political sensitivities and public accountability when working in a government setting.
Step 3: Show Clear Value to Users
Once stakeholder structures are in place, the next step is to clearly demonstrate how the ERP system improves daily tasks and public service outcomes. For public sector projects, this means highlighting benefits that matter to both citizens and employees.
Different teams have different priorities, so the key is to address their specific concerns and show them the real value.
Finance staff is focused on compliance and reporting. They’ll appreciate automated reconciliation and better audit trails, so detailed workflow demos can help them see the benefits.
Field workers need tools that fit into their daily operations. Mobile access and easier data entry make their jobs smoother, and hands-on training sessions ensure they’re comfortable using the system.
Department managers care about performance metrics. Real-time dashboards and better resource tracking give them the insights they need, and executive briefings help keep them aligned with overall goals.
IT teams are all about system integration. Lower maintenance and improved security are major selling points, and technical documentation gives them the details they need to support the system effectively.
For example, the State of Texas used data visualization to highlight a 40% reduction in financial transaction processing times after implementing their ERP system.
Set Up Two-Way Communication
Strong feedback channels make it easier to address ERP resistance early and build trust. Setting up effective communication is mandatory for an ERP implementation to be successful.
Digital tools can help streamline the process. An anonymous feedback portal gives employees a safe space to share concerns, while regular updates through tracked bulletins keep everyone informed.
In-person options create opportunities for real-time discussion. Department-specific focus groups give teams a chance to voice their needs, and weekly troubleshooting sessions help resolve issues before they escalate.
Seattle saw the impact of this firsthand. By integrating change management into their ERP communication strategy, they boosted adoption rates by 30% in the first three months—well above industry averages.
Tracking engagement with quick weekly surveys helps identify pain points, and when employees see immediate improvements, it eases the resistance identified earlier in the process. These efforts, combined with clear demonstrations of value, set the stage for the next step: role-specific training.
Step 4: Create Focused Training Plans
Train for Specific Job Roles
Tailoring training to each department’s needs boosts adoption while keeping things consistent across the organization. Here’s how different teams can benefit from role-specific training:
The State of Michigan used this approach and saw a 15% yearly improvement in system usage along with a 25% drop in support costs. It’s no surprise—according to Panorama Consulting, organizations with comprehensive ERP training programs see a 30% higher user adoption rate compared to those with minimal training.
Keep Skills Current
Staying proficient with ERP systems isn’t a one-and-done deal. Ongoing learning and support are essential.
To maintain the trust built in earlier steps, agencies should embed support tools directly into their ERP systems. This sets the stage for Step 5’s gradual rollout strategy.
Step 5: Start Small and Build Up
Rolling out a system in stages helps minimize pushback and makes adoption smoother by testing everything in smaller, controlled settings. When Austin introduced its ERP system to finance departments first, they saw a 22% increase in reporting accuracy while fine-tuning their strategy—proving that a phased approach pays off.
Start with the Right Departments
The best place to begin is with teams that have strong leadership support, well-documented processes, and clean, organized data. It also helps if they can operate independently without relying too much on other departments.
One finance leader put it best: “By focusing first on core accounting modules, we could address challenges early and refine our approach before expanding. This methodical approach was key to maintaining stakeholder confidence.”
This step-by-step rollout not only tackles the resistance issues discussed in Step 1 but also reinforces the benefits established in Step 3.
Track Progress with Data
To stay on course, focus on three key metrics: system adoption rates (pulling insights from analytics in Step 4), improvements in process efficiency, and cost savings. Research shows that phased rollouts are 2.5 times more likely to stay within budget, making them a smart strategy for large implementations.
Conclusion: Improving Government Operations with ERP
Overcoming ERP resistance in government agencies requires a clear, well-thought-out strategy that considers both the technical and human aspects. By following the outlined five steps, public sector organizations can significantly reduce delays caused by resistance.
Take the City of San Diego's 2022 ERP implementation as an example. Their "SD CONNECT" project replaced a 30-year-old legacy system and trained 11,000 staff members over 18 months. The results? A 30% decrease in manual data entry and a 25% boost in financial reporting accuracy. This success highlights how a phased approach, as described in Step 5, can lead to measurable improvements while effectively managing resistance.
By tackling resistance head-on with this structured method, agencies can sidestep typical challenges, improve processes, and achieve higher user adoption rates. This strategy not only ensures early success during phased rollouts but also embeds strong change management practices for the long term.
We hope you found this information helpful. If you have any feedback or questions or just want to chat about potential optimization strategies, please reach out to us at [email protected] or message us on social media. Our mission is to provide more transparency and access to public sector technology, so we invite you to follow us on social media, LinkedIn, and YouTube and listen to our weekly podcasts for daily Govtech thought leadership.
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