Want FREE Templates on Strategy & Transformation? Download our FREE compilation of 50+ slides. This is an exclusive promotion being run on LinkedIn.







Flevy Management Insights Q&A
What strategies can organizations employ to manage resistance to ERP change among employees?


This article provides a detailed response to: What strategies can organizations employ to manage resistance to ERP change among employees? For a comprehensive understanding of ERP Change Management, we also include relevant case studies for further reading and links to ERP Change Management best practice resources.

TLDR To manage resistance to ERP change, organizations should strategically focus on early Employee Engagement, provide comprehensive Training and Support, and ensure Effective and Transparent Communication, significantly increasing ERP implementation success.

Reading time: 4 minutes


Implementing an Enterprise Resource Planning (ERP) system represents a significant change for any organization. This process often encounters resistance from employees due to fear of the unknown, potential job losses, or the belief that the new system will complicate their work processes. Managing this resistance is crucial for the success of the ERP implementation. Here are strategies organizations can employ to manage resistance to ERP change among employees effectively.

Engage Employees Early in the Change Process

One of the most effective ways to manage resistance is to involve employees in the ERP implementation process from the beginning. Early engagement helps in understanding employee concerns and addressing them proactively. It also allows employees to feel valued and part of the change, rather than having change imposed on them. This strategy can include forming cross-functional teams that include employees from various levels within the organization to participate in planning and decision-making processes. According to a report by McKinsey, involving employees in the change process can increase the likelihood of success in organizational change initiatives by as much as 33%.

Moreover, early engagement provides an opportunity for employees to understand the benefits of the new system both for the organization and for themselves. Through workshops, seminars, and regular communication, organizations can educate their employees about how the ERP system will improve efficiency, reduce errors, and provide better data for decision-making. Real-world examples of successful ERP implementations in similar organizations can be particularly persuasive in demonstrating the potential benefits.

Additionally, soliciting feedback from employees throughout the implementation process and acting on viable suggestions can further reduce resistance. This approach not only improves the system’s alignment with the organization's needs but also empowers employees, making them more likely to support the change.

Explore related management topics: Organizational Change

Are you familiar with Flevy? We are you shortcut to immediate value.
Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab

Provide Comprehensive Training and Support

Lack of proper training and support is a significant barrier to successful ERP implementation. Employees often resist change when they feel they do not have the necessary skills to navigate the new system. To mitigate this, organizations must invest in comprehensive training programs that are tailored to the specific needs of different user groups within the organization. According to Gartner, effective training programs can increase employee adoption rates by up to 50%. Training should be ongoing, starting before the ERP system goes live and continuing as needed to ensure employees are comfortable and proficient with the system.

Beyond formal training, organizations should establish a support system where employees can get help when they encounter difficulties. This can include setting up a help desk, creating user groups, and appointing ERP champions within each department who can provide peer support. Real-time support, especially in the early stages of going live with the ERP system, can significantly reduce frustration and resistance among employees.

It's also beneficial to use a variety of training and support formats, including online tutorials, in-person workshops, and printed manuals. Different employees learn in different ways, and providing multiple avenues for learning ensures that all employees can find a method that works best for them. Tailoring training programs to meet the needs of various departments and roles within the organization can further enhance the effectiveness of these initiatives.

Communicate Effectively and Transparently

Effective communication is critical in managing resistance to change. Organizations should develop a communication plan that outlines how and when communications will occur throughout the ERP implementation process. This plan should aim to keep all stakeholders informed, engaged, and motivated. According to Deloitte, clear and transparent communication can reduce resistance to change by up to 20%. Communication should not only focus on the technical aspects of the ERP system but also on the strategic reasons behind the change, the benefits expected, and how the change will impact each employee.

It is important to communicate both the positive aspects and the challenges of the ERP implementation. Being honest about potential difficulties and how the organization plans to address them can build trust and reduce fear among employees. Regular updates on the progress of the implementation, including milestones achieved and next steps, can also help maintain momentum and keep employees engaged.

Lastly, organizations should provide forums for employees to ask questions, express concerns, and provide feedback. This could be in the form of regular town hall meetings, feedback sessions, or an online forum. Listening to employee concerns and addressing them promptly can significantly reduce resistance and build a positive perception of the ERP implementation process.

Managing resistance to ERP change requires a strategic approach that focuses on engagement, training, and communication. By involving employees early in the change process, providing comprehensive training and support, and communicating effectively and transparently, organizations can significantly increase the chances of a successful ERP implementation.

Best Practices in ERP Change Management

Here are best practices relevant to ERP Change Management from the Flevy Marketplace. View all our ERP Change Management materials here.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.

Explore all of our best practices in: ERP Change Management

ERP Change Management Case Studies

For a practical understanding of ERP Change Management, take a look at these case studies.

ERP Change Management for Midsize Defense Contractor

Scenario: A midsize firm specializing in aerospace defense is facing significant challenges in adapting to a new Enterprise Resource Planning (ERP) system.

Read Full Case Study

ERP Change Management in Specialty Chemicals Sector

Scenario: The organization, a specialty chemicals manufacturer with a global presence, has recently expanded its product portfolio and entered new markets, leading to increased complexity in operations.

Read Full Case Study

ERP Change Management Initiative for Defense Sector Leader

Scenario: The organization in question is a key player in the defense sector, facing significant challenges in adapting to a rapidly evolving market.

Read Full Case Study

ERP Change Management Overhaul for a Global Pharmaceutical Firm

Scenario: A global pharmaceutical firm is grappling with an outdated ERP system that has been heavily customized over the years.

Read Full Case Study

ERP Change Management for E-commerce in Specialty Chemicals

Scenario: An international specialty chemicals firm is grappling with the complexities of integrating a new ERP system across multiple global divisions.

Read Full Case Study

ERP Change Management for Telecoms in Competitive Asian Market

Scenario: The organization, a telecom provider in Asia, is facing significant challenges with its current ERP system, which is not keeping pace with the rapid evolution of the telecommunications industry.

Read Full Case Study


Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

How can ERP change management initiatives be scaled for small to medium-sized enterprises (SMEs)?
Scaling ERP Change Management for SMEs involves recognizing unique challenges, adopting a strategic, phased implementation approach, and leveraging external expertise and technologies to drive long-term growth. [Read full explanation]
How is artificial intelligence (AI) influencing ERP change management strategies?
AI is transforming ERP systems, requiring new Change Management strategies that emphasize agility, efficiency, and data-driven decision-making, while also addressing workforce dynamics and data governance. [Read full explanation]
How are sustainability practices being incorporated into ERP change management to meet environmental, social, and governance (ESG) criteria?
Incorporating sustainability into ERP Change Management involves Strategic Planning, Leadership, Operational Excellence, Performance Management, and Risk Management to meet ESG criteria, driving long-term success and global sustainability. [Read full explanation]
What metrics should be used to measure the success of ERP change management initiatives post-implementation?
Metrics for evaluating ERP change management success include User Adoption and Engagement (login frequency, training completion, satisfaction surveys), Operational Efficiency (process cycle times, error rates, cost savings), and Strategic Alignment and Business Performance (revenue growth, market share, customer satisfaction), supported by research from Gartner, Accenture, and Deloitte. [Read full explanation]
What role does data governance play in ERP change management, and how can it be effectively implemented?
Data governance is crucial in ERP Change Management for ensuring data integrity, compliance, and operational efficiency, achieved through strategic planning, clear policies, and leveraging technology. [Read full explanation]
How is the adoption of machine learning transforming ERP change management processes?
Machine Learning is transforming ERP Change Management by improving Predictive Analytics for decision-making, automating tasks for Operational Efficiency, and enhancing Risk Management and Compliance, offering significant organizational benefits. [Read full explanation]
What implications does the shift towards remote work have for ERP system accessibility and security?
The shift to remote work necessitates enhanced ERP system accessibility through cloud-based solutions and heightened security measures, including comprehensive cybersecurity frameworks and a culture of security awareness among employees. [Read full explanation]
How can Internet of Things (IoT) devices be integrated into ERP systems to enhance operational efficiency?
Integrating IoT devices with ERP systems boosts Operational Efficiency, reduces costs, and improves Decision-Making by leveraging Real-Time Data, Process Automation, and Advanced Analytics. [Read full explanation]

Source: Executive Q&A: ERP Change Management Questions, Flevy Management Insights, 2024


Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.




Read Customer Testimonials



Download our FREE Organization, Change, & Culture, Templates

Download our free compilation of 50+ slides and templates on Organizational Design, Change Management, and Corporate Culture. Methodologies include ADKAR, Burke-Litwin Change Model, McKinsey 7-S, Competing Values Framework, etc.