Manufacturers and distributors are implementing new enterprise resource planning (ERP) systems to streamline business processes, increase operational efficiency, improve the decision-making process and provide real-time visibility into their core business operations. However, an ERP system implementation is a significant undertaking that requires attention to every detail.
Digital transformation in manufacturing isn’t just about technology; it’s about people too. One of the major challenges your organization can experience during implementation is user resistance to new ERP software.
It’s a common fact of life: People are typically afraid of change and of doing things in new ways, and it’s safe to assume that your employees are no different. Your employees may resist a new system simply because they are afraid of the change, or they don’t understand the new system, or they are concerned about their job security. This makes it essential that you address the concerns of your employees and put in place strategies that can help you deal with any user resistance, ensuring you have a successful ERP implementation.
A Change Management Strategy for Your ERP Project
True transformation is about people, processes and technology with effective change management strategies. Prepare your organization for an ERP transition.
Common Reasons for User Resistance to New ERP Adoption
User resistance during an ERP implementation project occurs when the ERP system’s intended end-users push back against the new software and processes. There are many reasons that can make your employees resist your new ERP solution. If not addressed, user resistance can cripple your ERP implementation, resulting in an underused system which undermines return on your investment.
1. Fear of Change
Fear of change is one of the major causes of resistance to change in an ERP implementation. Your employees are accustomed to the way they perform their jobs—including how they use processes and systems. This may make them hesitant to adopt new ways of working. This is especially true since with expectations to learn the new software and adapt to different ways of working, which can be intimidating, leading to resistance.
2. Lack of Involvement
Your employees may feel that the new ERP system is being forced onto them when they are not involved in the project in any way. They can feel that their experience is not being valued by your organization, resulting in a resistance to the new ERP system and low user adoption rates.
3. Inadequate Training
ERP systems are complex in nature, and your employees must be properly trained to utilize them. Without proper training, your employees can be overwhelmed by the many new modules the ERP system introduces, making them feel frustrated. This can cause them to avoid using the new system altogether, create workarounds to avoid the new processes, or even completely revert back to the old way of performing their duties.
4. Usability Issues
A new ERP system can bring about new functionalities and modules to your organization, such as customer relationship management (CRM), supply chain management (SCM) and manufacturing execution system (MES) features among others. The end-users must be able to use these new functionalities for their day-to-day duties. The user experience of your ERP system is greatly impacted by the interface. Implementing a complex ERP system with a hard-to-understand interface can frustrate your employees and increase user resistance rates.
5. Job Security Concerns
Many employees fear that the increased automation new technologies bring to their tasks will render their positions obsolete. These feelings can increase resistance to the new ERP.
Strategies for Overcoming User Resistance to New ERP
A new ERP system brings about a significant change to your organization’s processes, roles and responsibilities, necessitating having effective organizational change management (OCM) in your ERP implementation plan. A comprehensive OCM plan contains strategies for:
- Communicating the changes expected
- Involving employees in the design and implementation process
- Providing support during the transition
To develop a change management plan, start by assessing how your different departments—such as manufacturing, supply chain, sales and human resources—will be impacted by the new ERP system implementation. Also, assess how the ERP system will impact the different job roles in your organization. While doing this assessment, identify potential points of resistance and come up with strategies that are targeted at addressing these cases. Allow your employees to provide their input and feedback. When you involve them in the design of the new processes and systems, you can ensure that they are engaged throughout the project, which will greatly increase ERP adoption rates and reduce resistance issues.
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1. Build a Strong Business Case
To combat user resistance towards your ERP implementation process, it’s important to build a strong business case for the project—one you can use to build support for change. Building a strong business case for your ERP project starts the moment your organization decides a new system is needed. This process involves first studying and understanding your existing business processes and systems, identifying gaps and pain points in your departments and demonstrating how a new ERP system can help deal with these issues and pain points. Building a strong business case is crucial in letting your employees understand the value of the change and how the new ERP system will benefit them in their day-to-day jobs, making them more receptive to the implementation.
Your key stakeholders—including employees, business leaders and department heads—must be involved in the process of building the business case for the change. This ensures that the ERP system addresses the different concerns and business needs of your departments and is aligned with your business strategy. To further reduce your employees’ fears and uncertainties, be transparent on the ERP implementation process, timeline and the expected outcomes.
2. Implement Effective Communication and Transparency
Open and transparent communication is essential in any organizational project, including ERP implementation. Your organization must clearly inform employees about the upcoming changes, the underlying reasons and how the ERP system will benefit your organization and your employees. But communication shouldn’t not stop there. Instead, continuously keep your employees informed and engaged throughout the project by providing regular updates, such as key milestones achieved on the project and the phase the project is at.
Communication should be a two-way street to ensure the users feel part of the process. Allow your employees to ask questions regarding the project, express concerns and provide feedback. This process can be achieved through different means, such as focus group discussions, surveys and one-on-one conversations. Allowing your employees to express their ideas and concerns—and addressing them promptly—demonstrates that you value your employees’ opinions, which helps build confidence in the implementation process.
3. Enlist Executive Sponsorship and Leadership Buy-In
Your employees are likely to accept your ERP implementation project when they see that your top management—such as CEOs and COOs—is fully committed to the project and actively involved in the process. Your executive sponsors should be involved in every aspect of the project, actively communicating the benefits of the new system and addressing any issues your employees raise regarding the project. However, this can only be achieved by first securing leadership buy-in.
Your organizational leadership must be involved in the decision-making process regarding the project, such as setting clear goals and objectives for the ERP implementation, defining success metrics and establishing a governance structure to oversee the project. Once your executives understand the value the new ERP system offers, they can become the champions for the project throughout your organization, reducing issues of employee resistance.
4. Provide Comprehensive Training and Support
Comprehensive training and support can assist in on-boarding your employees to the new system and processes. Offering user training and support can make your employees feel confident in their ability to use the new system effectively after rollout. Your training program should be tailored to meet the specific needs of your different user groups, such as shop floor personnel, warehouse staff and sales representatives among others. While setting up the training programs, consider factors such as job roles, technical proficiency and learning styles.
Training programs can be offered through different formats, such as classroom sessions, online courses, video tutorials and hands-on workshops. Training should be an ongoing process and should be offered through help desk services, user manuals and a knowledge base where your employees can access information from whenever they need it. Through this, your organization can effectively speed up the ERP adoption process and start enjoying the benefits the system offers.
Conclusion
The success of your ERP system implementation depends on how well your organization can overcome user resistance that arises during the implementation process. If your organization fails to address user resistance to new ERP, you may end up spending time and money on a project that doesn’t live to see a benefit to your organization. Engaging your employees throughout the ERP implementation project, and ensuring they understand how the new ERP system will benefit their jobs and your organization, can help reduce issues of user resistance.
Ultra Consultants has a deep understanding of the manufacturing and distribution industries. Our expertise goes beyond selecting an ERP vendor and system and implementation of the selected ERP system. Our proven methodology and project management expertise allows us to guide your ERP project through every phase with minimal resistance—including organizational change management—ensuring a smooth digital transformation journey. Ultra can help you deal with any potential resistance, increase user buy-in and equip your employees with the necessary skills and ongoing support to unlock the full potential of your new software solution. Get started today by requesting your free discovery call.
