Hitting Home Runs: Tracking ERP Success with Key Metrics

What can business leaders learn about tracking success and metrics from the world of baseball? Surprisingly, there is a lot—especially when we consider Moneyball: The Art of Winning an Unfair Game, a business-oriented book by Michael Lewis that delves into the power of unconventional metrics. The concept was further popularised in the film Moneyball, which tells the story of how Billy Beane, the General Manager of the Oakland Athletics (A’s), and Peter Brand, a Yale graduate and statistics enthusiast, transformed a struggling Major League Baseball team into an underdog powerhouse.

Their success stemmed from embracing sabermetrics—an analytical approach that focused on metrics like on-base percentage rather than traditional skills like batting averages or base stealing. This method enabled them to identify undervalued players, tap into overlooked talent, and achieve extraordinary results on a limited budget. By relying on data rather than gut instincts, the A’s reshaped how success was measured in baseball.

Just as the A’s harnessed the power of metrics to rewrite history, businesses implementing ERP systems can similarly use key metrics to measure user adoption and system utilisation post-training. These metrics not only reveal hidden opportunities but also help promote long-term success and optimise team performance.

However, businesses must also think beyond the initial phases of ERP implementation and adoption. It’s safe to say that we can draw from our own sports history maker, Rassie Erasmus. He is well-known for not only focusing on the game we are playing now but also the game we are playing four years from now by creating depth and sustainable change. It’s essential to establish a ‘business-as-usual’ (BAU) strategy that promotes continuous improvement, ensuring that user adoption progresses along a continuum from basic use to true mastery. Mastery should be the ultimate goal, as it is in this stage where businesses achieve the greatest return on investment (ROI) from their ERP system.

The Importance of Measuring Success

“When performance is measured, performance improves. When performance is measured and reported back, the rate of improvement accelerates.” – Pearson’s Law.

In the context of ERP systems, this quote emphasises the critical role of tracking KPIs to achieve and sustain organisational goals. It is not enough to simply implement an ERP system; success hinges on its adoption and effective use. KPIs allow business leaders to monitor progress, optimise system utilisation, and address gaps before they escalate.

Key Metrics to Measure ERP Success and Adoption

1. System Utilisation Rate: This measures the percentage of employees actively using the ERP system. Low utilisation often indicates poor training or resistance to change. An ideal utilisation rate suggests that the majority of employees are incorporating the ERP system into their daily workflows. To achieve this, ensure that training sessions are tailored to employees’ specific roles and tasks.

2. Employee Productivity: One of the main goals of an ERP system is to streamline workflows and improve productivity. Monitor how employees’ efficiency changes post-training. Productivity improvements often manifest as reduced task completion times, fewer bottlenecks, or increased output.

3. User Error Rates: Tracking the number of errors made in the system (e.g., incorrect data entries) can help assess how effectively employees are utilising the ERP platform. A high error rate may indicate insufficient training or a lack of system understanding.

4. Training Attendance and Comprehension: The success of system adoption begins with training. Track the percentage of employees attending training sessions and use follow-up quizzes or surveys to measure their comprehension. High attendance and strong comprehension scores signal a good foundation for user adoption.

5. Employee Satisfaction: A successful ERP system should make employees’ tasks easier, not harder. Measure employee satisfaction through surveys or interviews to gauge how well the ERP system supports their roles. Higher satisfaction levels often correlate with higher adoption and reduced turnover.

6. Customer Experience (CX): Metrics such as customer satisfaction scores, delivery times, and error-free order fulfilment reflect how well the ERP system enhances service quality. For example, ERP implementation at a manufacturing company, which results in a 25% reduction in delivery errors, will directly improve the customer experience.

7. Process Efficiency: Track improvements in key processes, such as inventory management, demand forecasting, and scheduling. For instance, a retailer using ERP to monitor inventory turnover may find that it reduces overstocking and stockouts, saving costs and improving responsiveness to customer demands.

8. IT Spending and System Performance: Monitor metrics related to IT spending, such as the cost per user or system uptime. Effective ERP systems should streamline IT resources, consolidate outdated systems, and reduce overall spending without sacrificing performance.

9. Revenue Growth and Profit Margins: Ultimately, the bottom line matters. Measure how revenue and profit margins change post-implementation. ERP systems can support revenue growth by enabling better demand forecasting, optimising pricing strategies, and improving customer retention.

Beyond the Numbers: Real-Time Insights Matter

Tracking KPIs in isolation is not enough. Real-time data plays a pivotal role in maintaining consistent visibility into system utilisation and performance. Integrating your ERP system with business intelligence tools allows stakeholders to access digestible insights at a glance, enabling quicker decision-making.

Continuous Monitoring for Long-term Success

ERP systems are not a one-time investment; their value grows when continuously monitored and optimised. Revisiting KPIs regularly ensures alignment with evolving business goals. Some questions to periodically consider include:

• Are employees using the system effectively?
• Which processes are improving and which require refinement?
• How often do we require training and refresher training?
• Are customer satisfaction and revenue growing as expected?

To support long-term success, a BAU strategy must also include regular assessments of user proficiency. As users gain experience and confidence, their interaction with the ERP system should shift from basic to advanced, strategic use.

Mastery is critical, as it empowers employees to fully unlock the system’s potential, leading to optimised workflows, enhanced innovation, and maximised ROI. Remember, as seen in Moneyball, success is not just about tracking metrics—it’s about using the right metrics to make informed, strategic decisions. By focusing on user adoption and system utilisation metrics from beginning to end, you can position your ERP implementation for sustained success.

Conclusion

Implementing an ERP system is a significant investment, and its success depends on more than just deploying the technology. By carefully tracking key metrics like utilisation rates, employee satisfaction, and process efficiencies, businesses can ensure their ERP system delivers measurable value. Moreover, ongoing monitoring is essential to adapt to changing needs and sustain success over the long term. A clear focus on mastering ERP systems through a well-structured BAU strategy is key to achieving the highest ROI. By continuously measuring and refining user adoption, businesses can move beyond initial success and achieve long-term operational excellence.

Just as Billy Beane and Peter Brand used metrics to turn the Oakland A’s into contenders, you too can create opportunities for success by tapping into the power of KPIs. Measure, refine, and optimise—because, in business, as in baseball, the right metrics can change the game.