Press Release - December 2013 - 2

Never Fail: Solid Prep Work Lays the Foundation for Successful ERP Implementation

By Joel Schneider, Liberty Technology Advisors, Inc.

The technological fiasco of the HealthCare.gov website and system is enough to bring out the inner Luddite in many business leaders. When a new system crashes and burns so spectacularly, it throws suspicion on the ability of any innovative technology to achieve its goals smoothly and efficiently. For IT business consultants, however, the difficulties faced in the system’s roll-out are classic examples of poor planning leading to poor results. Without the proper foundation, training and testing, it is no surprise that problems arose on a massive scale.

To put it simply, plan your work and work the plan.

It doesn’t have to be this way. When businesses consider implementing significant business-system programs such as ERP systems, the single most important factor for success is preparation. Full preparation includes every level of the organization that will be impacted by the new system, with an open-door policy of input, training, support and feedback that starts in the earliest stages of system selection. This inclusive strategy breeds an atmosphere of communication and ownership, which will lead to better product choices in the beginning and smoother implementation in the end of the process.

Benefits of ERP Software: What’s in It for Us?

The selling points of ERP systems are music to the ears of CEOs. Effective ERP can streamline business processes, centralize master data, improve customer service and enhance efficiency across the board. By connecting accounting, manufacturing, supply chain, CRM and human resource functions, ERP software has the potential to create an interconnected, interactive network from disjointed company departments, business processes and systems. To get there, however, requires a significant investment of money and—even more precious—human capital.

The first step to success is gaining commitment and support from all levels, by seeking meaningful input about what the organization needs. Project management teams within the company, along with outside consultants, should personally meet with leaders and staff of affected departments to discuss needs and benefits. The front-line employees are crucial throughout the selection and implementation process; they have the firsthand information about what is working and not working in their spheres of influence, and they eventually will be responsible for making the new system work. Make sure that they know their opinions are valued, so that they will approach the effort of implementation with a sense of ownership and enthusiasm.

Team Building: Who’s in Charge Here?

Project management for ERP is likely to be a long-term commitment—the selection, training, implementation and follow-up process can easily run from several months to over a year. An effective team structure is vitally important to achieving a positive result. By keeping the paths of communication open between IT staff, consultants, company leadership and departmental heads, the implementation process can be advanced steadily with ongoing feedback and consistent messaging.

Structurally, the project team needs to have an actively involved point person who has final responsibility for decision-making and for communication with company leadership. The project team also includes other organizational leaders whose departments will be involved in the implementation. Group meetings to bring these individuals together will build consensus on system priorities and facilitate cooperation as elements come online. Once those relationships are forged, maintain frequent communication through existing company channels to keep everyone fully engaged in the process.

Taking the Plunge: First, learn to swim.

The most wonderful software solution in the world still needs humans to use it correctly. From the early stages of ERP decision-making, the team must consider how to prepare staff to use the new systems. This can be a massive undertaking, depending on the degree of technology comfort among employees and their attachment to pre-existing systems. Learning a new way of operating will require a significant time commitment for everyone, but the project can and should take proactive measures to reduce the burden (and possible resentment).

An initial assessment of staff skills is an excellent early planning tool. Departmental leaders from the project team can identify specific needs, allowing for sufficient time to develop and deliver training programs. Extended training time will ease anxiety, highlight possible problem areas and allow for a smoother transition once the system is implemented.

The most effective training may not come from outside sources. Tech-savvy employees within departments can be given the opportunity for more in-depth instruction to become expert resources for their fellow employees. Having a readily available support contact within an operational group reduces the “us vs. them” dynamic that can poison the implementation process. When the pre-existing legacy systems are removed—and they should be, as soon as feasible—employees must feel confident that they have sufficient training and support to make the transition successfully.

Bottom Line: Bring everyone on board.

The enemies of innovation are fear, distrust and inertia. When a company plans to institute large-scale changes like an ERP implementation, the success of the process will hinge on the removal of those negative attitudes. Team leadership should seek participation from the larger organization at every phase of the transition and look for opportunities to ease the burden of changes over time. The full participation of the organizational team will have the added benefit of clarifying priorities and identifying problems before they blow up. Honest, direct communication will build the esprit de corps that makes successful change possible.

About the Author

Joel Schneider is the co-founder of Liberty Technology Advisors, Inc., based in Northbrook, Illinois. Joel has over 25 years of experience as a management consultant, specializing in information systems, business process optimization and operations management. He is an ERP maestro, able to develop and apply customized strategies in a way that revolutionizes the way a business performs. Joel has leveraged his consulting talents for clients in a wide range of industries, focusing on manufacturing, distribution, process, food and beverage and consumer products.