ERP modernization exemplifies this phenomenon. Replacing an outdated, under-performing system with a modern ERP that’s cloud-based and AI-enhanced can improve almost everything for a manufacturing company. But it’s common, even inevitable, to encounter unexpected obstacles during implementation. In fact, many manufacturers delay ERP modernization because they expect the risks to outweigh the rewards.
Reversing that formula starts by acknowledging that change, even when positive, creates stress in the process. Manufacturers must evolve along with their ERP, which doesn’t happen automatically or easily.
This blog highlights the deep link between change management and ERP success before explaining how any company can introduce new solutions without creating new problems.
Why Change Management is the Difference Maker
Vendor selection and technical details are important aspects of ERP replacement, but they’re secondary to preparing people and processes. A perfect solution will only pay off if the people using it have bought in and the processes run by it have adapted. Effective change management reduces friction, increases enthusiasm, and creates alignment between technology and business goals. It builds the foundation beneath a successful solution.
Ineffective change management does the opposite. It leaves stakeholders feeling unprepared to use the new solution, unclear about the benefits and timelines, and resistant to try something different. When companies underestimate how much a new ERP changes culture and processes, it makes both weaker than before. The ERP may improve. The company itself does not.
So much depends on change management that planning this part of the implementation matters as much or more than standing up the actual ERP.
How to Get Change Management Right
Most companies don’t ignore change management entirely. But since ERP replacement happens so rarely, most manufacturers have minimal experience with change on this scale, then find themselves unprepared for all it entails. The specifics are unique to each company, and it’s important to avoid a one-size-fits-all approach. That being said, all successful change management efforts focus on some common priorities.
- Clear Communication: Communication is first on this list for a reason—it’s the fuel of change management. People need as much information as possible about when, why, and how their workday will change with a new ERP. Plan to supply updates early, often, and in-depth. Strive to also be open and available so that people feel comfortable coming forward with questions and concerns.
- Executive Sponsorship: Leaders set the tone for change management. Messages that come from the top carry extra weight, helping to build credibility for the new ERP and establish urgency. Likewise, executives will set timelines, budgets, and milestones that will either help keep the implementation on track or leave it without the resources to succeed.
- Employee Training: Providing employees with adequate training and support helps them fully utilize new technology starting on day one. Just as important, it helps them feel confident with the tools and clear about why they’re superior, which is important for buy-in. Just as with the communication strategy, start training early, supply it often, and create an outlet for ongoing support.
- Feedback Loops: Change management requires adaptability more than perfect planning. Expect the unexpected and be willing to make adjustments on the fly. Continuous listening is important for anticipating issues early, as is a willingness to be flexible about anything and everything as the ERP rollout proceeds. Treat nothing as sacred except success.
- Positive Reinforcement: Change is an accomplishment more than a certainty. Keep momentum by celebrating wins, identifying key contributors, and highlighting what’s going well. Incentives can also be a powerful motivator, just be sure to make the rewards apply to as many people as possible rather than a small set of “prize winners” so that everyone feels invested and involved.
The Most Important Part of Change Management
The single most important part of change management is to put a plan in place from the very beginning of the new ERP implementation. Starting later without a systematic approach puts the entire process, and everyone relying on it, at a disadvantage.
The best ERP implementation partners will help to plan and orchestrate change management in addition to picking and installing a new ERP. A holistic approach that prioritizes change management and integrates it deeply into the integration does more to ensure ERP success than anything else.
Guide Technologies has seen the results firsthand after leading ERP modernization efforts for years. We know that change management is the difference maker. And we’ve developed a proven process to make change an asset, not an obstacle.
Enter your implementation certain and emerge stronger—enlist Guide Technologies.
