| nies that undertake the process of implementing a | | | | from everyone. One good way to open the |
| new ERP software system often mistakenly view the | | | | communication channels is to conduct |
| task as one that is entirely IT and technical. This belief | | | | interdepartmental workshops that discuss, in detail, the |
| is one of the most common reasons that new | | | | ways that each business area will be impacted by the |
| software often takes longer than necessary to be | | | | change, the reason for the change, and the other |
| successful, particularly when the new software | | | | factors mentioned above. |
| impacts multiple departments of the organization. While | | | | 3) Management Must be Leaders: Most organizations |
| some of the reasons for this failure can be attributed | | | | in today's business world are led by management, but |
| to IT 'reasons,' a number of them can be attributed to | | | | those managers are not necessarily leaders. Most |
| a lack of proper change management on the part of | | | | decisions are annouced in memos or similar manners. |
| top level executives and managers. | | | | This will not work when a big change like a change in |
| The reason is really no surprise. Most people that work | | | | MRP software is made. This is because if employees |
| for companies are somewhat resistant to change and | | | | receive a memo from their direct supervisor |
| believe that change generates conflict. At the very | | | | mentioning the upcoming change, they are unlikely to |
| least, they see the changes as a disruption that will | | | | believe that the top level execs are behind the decision |
| interfere with their ability to do their job and may even | | | | and may ignore it. In other words, all levels of |
| put their job in jeopardy. Therefore, management must | | | | management must be actively involved in the change |
| be thoroughly equipped to manage this change so that | | | | management. |
| they can attain the positive results that they expect. | | | | Further, upper management often wrongly assumes |
| Properly managing the change process requires | | | | that new systems are simply "plug and play" and do |
| analysis, communication, and adequate leadership from | | | | not realize that a much larger leadership presence is |
| the beginning of the software evaluation process until | | | | necessary. This is especially a problem in small to mid |
| well after the new manufacturing software goes live. | | | | sized companies. |
| Below, I've listed some key issues to consider | | | | 4) The New Software Must be 'Sold' to Employees: |
| throughout the change process: | | | | This is relatively self explanatory and simply means |
| 1) Hire a consultant: This is probably one of the most | | | | that all steps must be taken to ensure that all |
| important issues and steps that must be taken. Most | | | | employees are "bought in" to the new system. They |
| small to mid sized companies simply do not have the | | | | must understand that they have a stake in the ultimate |
| proper skills on their staff to effectively manage and | | | | success of the system that will impact the overall |
| monitor the change. Even if they do, they will still have | | | | organization, and potentially their jobs. If they do not |
| other jobs to do that will limit their ability to adequately | | | | feel like they have a stake in the new software, it may |
| monitor the software change. Software sellers are | | | | ultimately fail. |
| likewise unlikely to have the necessary skills because | | | | 5) How to Deal with Fear: Rest assured, any new |
| serving as a consultant to companies that are | | | | software conversion will not come without fear on |
| switching software is: | | | | behalf of employees. Some common fears they may |
| - Outside of their core competency, which is | | | | have are: |
| developing and selling software. | | | | - Will this change make my job obsolete? |
| - Essentially a sunk cost - they receive no additional | | | | - What will happen if I struggle to learn the new |
| funds for doing so | | | | system? |
| - A situation where they may be forced to work with | | | | - What if the new software makes my skill set less |
| parties they are unfamiliar with and business models | | | | valuable? Will I still be paid for the skills I have? |
| that they are not intimately familiar with | | | | - Will the new system take away some of my |
| An experienced consultant can help identify major | | | | power? (This is a common fear for mid level |
| problems and guide the company through the process | | | | managers) |
| of proactively dealing with them. They will have | | | | If fear is not confronted, it can lead to oppositional |
| experience working with companies just like yours and | | | | behavior or employees leaving that feel they cannot |
| will be an invaluable asset...although they will cost a | | | | deal with the new uncertainties. Thus, upper |
| decent amount of money. | | | | management needs to make sure that all uncertainties |
| 2) Employee Involvement and Communication: All | | | | are addressed. |
| employees that will be impacted by the software | | | | 6) Conflict Resolution: There will be some conflict with |
| change need to be notified early and often. This | | | | the new system. This is almost guaranteed. Turf |
| communication needs to be a two-way street as well. | | | | battles may erupt. New communication between |
| Their input must be sought as they will be able to | | | | previously unconnected departments may lead to |
| identify problem areas that management may not think | | | | conflict. In most cases, these conflicts can be |
| of. At the very least, they need to know: | | | | proactively dealt with by addressing the fears noted |
| - What will happen | | | | above. |
| - When | | | | However, if conflict does erupt, it cannot be ignored, |
| - Why the change is being made | | | | despite the fact that most people think it will eventually |
| - What the change is expected to accomplish | | | | 'work itself out.' Do not send signals that conflict should |
| - Who will be impacted by the change | | | | be hidden. Instead, confront it head-on and resolve it as |
| - How the change will impact them | | | | quickly as possible. Honesty is key here and it may be |
| If this kind of communication is not provided, | | | | advantageous to bring in an objective third party to |
| management should expect a number of different | | | | deal with conflict. |
| responses from employees. This communication may | | | | Finally, keep in mind that this this article is not meant to |
| range from simple misunderstandings to outright | | | | be all inclusive, although it does point out some key |
| opposition, which is frequently hidden and extremely | | | | elements of a successful ERP software conversion. |
| detrimental. Again, the importance of soliciting input | | | | The concepts discussed here are likely to be more |
| from employees should not be understated. Not only | | | | prevalent in larger companies, but certain aspects of |
| may good issues come to the forefront, but | | | | them all will be seen in companies of all sizes. The key |
| employees who are consulted will be more "bought in" | | | | is proper leadership from management that focuses |
| to the change, which will help prevent mistakes down | | | | on honest and open communication. Without that, you |
| the road and will lessen the covert opposition. | | | | would be surprised how much of a negative impact |
| That being said, it is difficult to find the time to get input | | | | one or two unhappy employees can have. |