Implementing an Enterprise Resource Planning (ERP) system is a big project for any organization.

It doesn’t just involve adopting a new software but also restructuring processes, roles, and workflows.

Without proper change management in ERP implementation, even the most sophisticated system can fail to deliver its intended benefits.

In this article, we talk about some change management tactics for a successful ERP implementation.

An ERP system combines various functions, including finance, human resources, supply chain management, procurement, manufacturing, and customer relationship management (CRM), into a single, unified system.

The primary goal of an ERP system is to facilitate the flow of information between all business functions within an organization and to manage connections to outside stakeholders.

By centralizing data, an ERP system helps businesses to streamline operations, improve efficiency, reduce costs, and make more informed decisions.

Understanding change management in ERP implementation

Change management in ERP implementation involves a systematic process to guide individuals, teams, and organizations from their current way of operating to a new, improved state made possible by the ERP system.

It often involves preparing and supporting employees, managing expectations, and ensuring the new system is fully adopted and utilized.

Considering how complex ERP systems can be, change management is not a one-size-fits-all process. Each organization must tailor its approach based on its needs, culture, and business environment.

Why change management is important for ERP implementation

Minimizing resistance to change

Implementing an ERP system often requires employees to change the way they perform their jobs, learn new processes, and adopt new technologies. Naturally, this can lead to resistance. Change management helps mitigate this resistance by engaging employees early in the process, clearly communicating the reasons for the change, and addressing their concerns.

Ensuring proper training and skill development

A new ERP system requires employees to develop new skills and adapt to new workflows. Without proper training, employees may struggle to use the system effectively, leading to errors, inefficiencies, and frustration. Change management ensures that training programs are in place to equip employees with the necessary skills to use the ERP system effectively.

Aligning the ERP system with business goals

An ERP system must align with the organization’s overall business goals to deliver value. Change management plays a key role in ensuring this alignment by involving stakeholders in the planning process. By setting clear objectives, change management helps define what success looks like for the ERP implementation to ensure that the system supports the organization’s strategic goals.

Reducing operational disruptions

The implementation of an ERP system can disrupt daily operations if not managed carefully. Change management helps minimize these disruptions by planning the transition in phases, testing the system in controlled environments, and ensuring that contingency plans are in place. For example, pilot testing the ERP system in a specific department or business unit before a full rollout allows for adjustments to be made based on real-world feedback.

Enhancing communication across the organization

Effective communication is at the core of change management. It ensures that everyone in the organization understands the purpose of the ERP implementation, how it will benefit them, and what is expected of them during the transition. Transparent communication promotes open and honest dialogue which helps to reduce the spread of misinformation and to manage expectations.

Change management tactics for successful ERP implementation

1. Engage stakeholders early
2. Develop a clear communication plan
3. Provide comprehensive training
4. Adopt a phased implementation approach
5. Establish a change leadership team
6. Create a feedback loop
7. Monitor and measure progress
8. Sustain the change

1. Engage stakeholders early

One of the most effective change management tactics for successful ERP implementation is engaging stakeholders early in the process. This does not just include top management but also employees at all levels who will be directly impacted by the ERP system. By involving them from the beginning, you can gather valuable feedback, address concerns, and build a sense of ownership. Early engagement ensures that stakeholders understand the reasons for the change and are more likely to support the transition. 

2. Develop a clear communication plan

A communication plan is important for managing change during ERP implementation. The plan should outline how and when information will be shared with employees, what channels will be used, and who will deliver the messages. Effective communication helps to reduce uncertainty, manage expectations, and keep everyone informed about the progress of the implementation. It also promotes transparency, ensuring that employees are aware of how the ERP system will impact their roles and the benefits it will bring to the organization.

3. Provide comprehensive training

Successful change management in ERP implementation cannot happen without training. Employees need to be equipped with the necessary skills to use the new system effectively. A comprehensive training program should be tailored to the needs of different user groups, ensuring that everyone, from end-users to IT staff, is prepared to work with the ERP system. Training should not only cover the technical aspects of the software but also explain how it will change existing processes and workflows.

4. Adopt a phased implementation approach

Instead of rolling out the ERP system all at once, you might want to consider a phased implementation approach. This tactic allows the organization to introduce the ERP system gradually, starting with a pilot in one department or business unit. A phased approach helps to minimize disruptions to daily operations and provides an opportunity to test the system in a controlled environment. Any issues that arise during the pilot can be addressed before the system is deployed across the entire organization.

5. Establish a change leadership team

A change leadership team can play a pivotal role in managing the ERP implementation process. Ideally, this team should consist of people from various departments who are responsible for overseeing the change, addressing challenges, and driving the adoption of the ERP system. The change leadership team can act as a bridge between management and employees, ensuring that concerns are heard and addressed promptly.

6. Create a feedback loop

For continuous improvement during and after ERP implementation, creating a feedback loop is important. Establishing ways for gathering feedback from employees can help an organization identify areas where the ERP system may need adjustment or where additional training is required. Regular feedback sessions and surveys can provide valuable insights into how the system is being used and where improvements can be made.

7. Monitor and measure progress

Monitoring and measuring progress throughout the ERP implementation process is important for ensuring its success. This involves setting clear metrics and benchmarks to track the effectiveness of the change management strategies and the overall implementation. Regularly reviewing these metrics allows the organization to identify any areas where the implementation may be falling short and take action. Monitoring progress also helps to keep the project on track, ensuring that timelines and budgets are adhered to.

8. Sustain the change

Once the ERP system is in place, it’s important to sustain the change to ensure long-term success. You can do this by continuing to provide support and training to employees, addressing any ongoing challenges, and promoting the benefits of the ERP system. Sustaining the change also requires ongoing monitoring and evaluation to ensure that the ERP system continues to meet the organization’s needs as it evolves.

ERP change management framework

Assessment and planning

Evaluate the organization’s current state, including its culture, processes, and technology, to determine its readiness for the ERP implementation. Also, identify and analyze how the new ERP system will affect different parts of the organization, including workflows, roles, and responsibilities.

Engagement and communication

Create a plan to communicate the vision, objectives, and benefits of the ERP implementation to all stakeholders. Engage employees in the process by involving them in decision-making, seeking their input, and addressing their concerns.

Training and development

Develop training programs tailored to different user groups, ensuring that everyone has the skills needed to use the new system. You can also offer resources such as user manuals, online tutorials, and help desks to support employees during the transition.

Implementation and support

It’s important to conduct pilot tests to identify and resolve any issues before the full rollout. Track the progress of the implementation and make adjustments as needed to ensure a smooth transition. Continue to offer support to employees, including giving them additional training and resources as needed.

ERP change management in Kenya

ERP implementation in Kenya comes with unique challenges and opportunities peculiar to the local environment. As the country’s economy is growing, it is making the adoption of technologies like ERP systems an attractive option for businesses looking to improve efficiency and competitiveness. However, the success of these implementations depends on effective change management.

What to consider for ERP change management in Kenya

Local business culture

When implementing ERP change management in Kenya, it’s good to understand the local business culture. Consider the business culture and how people interact with businesses. This can influence how changes are received and adopted. Based on this, building trust with employees and stakeholders is important. This means taking the time to engage with them, listen to their concerns, and involve them in the decision-making process. Recognizing and respecting the cultural values that influence business practices in Kenya will help in gaining buy-in and support for the ERP system.

Regulatory and compliance requirements

Every country has specific regulatory and compliance requirements that must be considered during ERP implementation. This includes understanding local laws related to data protection, labour regulations, and industry-specific guidelines. Ensuring that the ERP system complies with these regulations is essential to avoid legal issues and penalties. Additionally, an ERP system in Kenya should be capable of adapting to any changes in regulations, which may occur as Kenya’s regulatory environment evolves. You can engage with local legal and compliance experts who can help ensure that the system meets all requirements.

Infrastructure and technology readiness

Before implementing an ERP system in Kenya, it’s important to assess the infrastructure and technology readiness of the organization. While Kenya has made significant advancements in technology, there may still be challenges related to internet connectivity, power reliability, and access to the latest hardware and software. The ERP system should be designed to operate effectively within the available infrastructure. This might involve choosing a cloud-based ERP solution that can reduce the dependency on local IT infrastructure or ensuring that there are reliable backup systems in place to deal with potential disruptions.

Language and communication

Kenya is a multilingual country, with English and Swahili being the official languages. However, there are many other local languages spoken across the country. Effective communication during ERP change management should take into account language preferences to ensure that all employees fully understand the changes being implemented. Providing training and support materials in both English and Swahili or even in other local languages where necessary, can help bridge communication gaps. Clear and accessible communication is key to ensuring that everyone is on the same page and that the ERP system is successfully adopted.

Training and skill development

In Kenya, the level of familiarity with ERP systems may vary among employees. As such, a strong focus on training and skill development is important. Training programs should be tailored to the specific needs of the employees, ensuring that they are comfortable with the new system. This might involve hands-on workshops, one-on-one training sessions, or even e-learning, self-paced modules. Providing continuous support after the initial training phase helps employees adapt to the system over time and to address any ongoing challenges.

Conclusion

Effective change management in ERP implementation is important to the success of the project. By effectively implementing these change management tactics, organizations can navigate the complexities of ERP implementation and achieve their desired outcomes.

In Kenya, as in other parts of the world, understanding the local context, including cultural and regulatory factors, is essential for success. Adopting a structured change management framework and learning from successful implementations will help your organization realize the full benefits of its ERP systems.

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