Flevy Management Insights Q&A
What strategies can be employed to overcome resistance to change during ERP implementation?


This article provides a detailed response to: What strategies can be employed to overcome resistance to change during ERP implementation? For a comprehensive understanding of ERP, we also include relevant case studies for further reading and links to ERP best practice resources.

TLDR Effective ERP implementation strategies include Engagement and Communication, Training and Support, and strong Change Leadership and Culture, as demonstrated by companies like Cisco, Siemens, Boeing, and Hewlett-Packard.

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Before we begin, let's review some important management concepts, as they related to this question.

What does Engagement and Communication mean?
What does Training and Support mean?
What does Change Leadership and Culture mean?


Enterprise Resource Planning (ERP) systems are critical for integrating processes across various departments of an organization, offering real-time data and insights that enhance decision-making and operational efficiency. However, ERP implementation is often met with resistance from employees due to fear of change, disruption of familiar workflows, and concerns over job security. Overcoming this resistance is crucial for the success of an ERP project. Here are strategies grounded in Change Management principles and insights from leading consulting firms that can help organizations navigate these challenges.

Engagement and Communication

Effective engagement and communication are paramount in overcoming resistance to change. Early and transparent communication about the reasons for the ERP implementation, its benefits, and its impact on various roles within the organization can help mitigate fears and build trust. According to McKinsey, organizations that excel at internal communications are 3.5 times more likely to outperform their peers. A comprehensive communication plan should include regular updates, Q&A sessions, and open forums where employees can express concerns and ask questions. Highlighting how the ERP system will make their jobs easier and contribute to career growth can also increase acceptance and support.

It is essential to tailor communication strategies to different groups within the organization, recognizing that each department may have unique concerns and needs. Utilizing a variety of communication channels—such as email, intranet, workshops, and face-to-face meetings—ensures that the message reaches everyone. Additionally, involving key stakeholders and department heads in the communication process can help disseminate information more effectively and lend credibility to the project.

Real-world examples include companies like Cisco and Siemens, which have successfully managed large-scale ERP implementations by focusing on comprehensive communication strategies. These companies emphasized the importance of clear, consistent messages from top management and the use of cross-functional teams to facilitate communication across departments.

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Training and Support

Providing adequate training and support is critical to ensuring that employees feel prepared to use the new ERP system. According to a report by Accenture, one of the top reasons ERP implementations fail is inadequate training. Customized training programs that are relevant to the specific roles and responsibilities of users can increase confidence and reduce resistance. These programs should be designed to offer hands-on experience with the ERP system, using real-life scenarios that employees are likely to encounter.

Post-implementation support is equally important. Establishing a help desk or a team of ERP champions who can provide ongoing assistance and troubleshoot problems can help ease the transition. Encouraging a culture of continuous learning and improvement, where feedback is actively sought and used to refine training and support services, can further enhance user adoption.

Companies like Boeing and Hewlett-Packard have demonstrated the effectiveness of investing in comprehensive training programs. They not only provided extensive pre-launch training but also ensured ongoing education and support, adapting their training programs based on user feedback and evolving needs.

Change Leadership and Culture

Leadership plays a crucial role in driving change and overcoming resistance. Leaders must be fully committed to the ERP implementation and act as role models, demonstrating the desired behaviors and attitudes towards the new system. According to Deloitte, effective change leadership is characterized by clear vision, active sponsorship, and the ability to mobilize commitment across the organization. Leaders should be visible, accessible, and actively involved in the implementation process, addressing concerns and providing reassurance.

Fostering a culture that is open to change and innovation is also vital. This involves recognizing and rewarding behaviors that support the ERP implementation and the organization's broader goals. Creating opportunities for employees to contribute ideas and be involved in decision-making related to the ERP project can foster a sense of ownership and reduce resistance.

Examples of successful change leadership can be seen in companies like Nestlé and Ford, which have undertaken significant ERP projects. These companies emphasized the role of leadership in championing the change, setting clear expectations, and celebrating milestones to maintain momentum and morale.

Implementing an ERP system is a complex and challenging endeavor, but by focusing on effective engagement and communication, providing adequate training and support, and fostering strong change leadership and a culture open to innovation, organizations can overcome resistance and realize the full potential of their ERP investments.

Best Practices in ERP

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

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Explore all of our best practices in: ERP

ERP Case Studies

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

ERP Integration in Luxury Fashion Retail

Scenario: The company is a high-end luxury fashion retailer facing challenges in integrating its disparate ERP systems across global operations.

Read Full Case Study

ERP System Overhaul for D2C Luxury Fashion Brand

Scenario: A luxury direct-to-consumer fashion brand is struggling with an outdated ERP system that cannot keep pace with its dynamic inventory needs and global customer base.

Read Full Case Study

ERP System Revitalization for a Defense Contractor in Aerospace

Scenario: A leading defense contractor specializing in aerospace technologies is grappling with an outdated and fragmented Enterprise Resource Planning system that hinders its operational efficiency and responsiveness to government contracts.

Read Full Case Study

ERP System Overhaul for Mid-Size Agribusiness in Competitive Market

Scenario: A mid-size agribusiness specializing in high-yield crops is struggling with an outdated ERP system that limits its ability to respond to market volatility.

Read Full Case Study

Enterprise Resource Planning (ERP) Optimization Project for a Growing Retail Company

Scenario: A privately-owned, mid-market retail company based in the United States has experienced exceptional growth over the past year, almost doubling its customer and revenue base.

Read Full Case Study

ERP System Overhaul for a Luxury Retail Chain in North America

Scenario: The organization is a high-end luxury retail chain facing challenges in integrating their current disparate ERP systems following a series of acquisitions.

Read Full Case Study

Explore all Flevy Management Case Studies

Related Questions

Here are our additional questions you may be interested in.

What role does artificial intelligence play in enhancing the capabilities of ERP systems for predictive analytics?
AI integration in ERP systems significantly improves Predictive Analytics, enhancing forecasting accuracy, optimizing operations, and driving informed strategic decision-making for Operational Excellence and Strategic Planning. [Read full explanation]
How are emerging technologies like blockchain expected to influence the future development of ERP systems?
Blockchain technology is set to transform ERP systems by enhancing security, enabling real-time data analysis and decision-making, and improving supply chain management, despite integration challenges and the need for organizational adaptation. [Read full explanation]
How can executives measure the ROI of ERP implementation in their organizations?
Executives can measure the ROI of ERP implementation by establishing clear KPIs aligned with strategic goals, quantifying cost savings and revenue enhancements, and considering intangible benefits to build a comprehensive case for ERP's value in driving Organizational Success. [Read full explanation]
What role does edge computing play in the future of ERP systems, especially in manufacturing and logistics?
Edge Computing is set to revolutionize ERP systems in manufacturing and logistics by enabling real-time data processing, improving operational efficiency, and driving cost savings. [Read full explanation]
In what ways can ERP systems support a company's sustainability and ESG goals?
ERP systems advance sustainability and ESG goals by optimizing resource use, ensuring regulatory compliance, managing risks, and improving sustainability reporting and stakeholder engagement. [Read full explanation]
How can companies measure the ROI of their ERP investment effectively?
Organizations can measure ERP ROI by setting clear Strategic Planning objectives and KPIs, utilizing a Phased Approach for incremental benefits, considering both Tangible and Intangible Benefits, and analyzing Total Cost of Ownership compared to benefits. [Read full explanation]

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


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