Project Management
The Management An often
Underestimated
Role in ERP Projects
Role
The decision for a new ERP system is one of the most critical decisions that management can make. After all, it commits the company and its employees to working in a certain way for many years to come. Since a wrong decision can have far-reaching consequences, in some cases management is responsible for the failure of implementation projects. However, it is usually not because of what it contributes to these projects - but rather what it does not contribute.
ERP Projects: more than just buying Products or Services
Anyone who orders furniture normally checks on delivery whether the number of items matches the quantity ordered. At best, they also check the items directly for defects. With a software implementation, things are a little more complicated. This is because it involves far more than just the purchase of a few products or services.
With an ERP implementation, you also check whether you have received all ordered modules and usage rights. However, as an ERP project is no longer just a technical project, this is by no means everything you need to consider. ERP implementations involve a transformation of your company and corporate culture as well as many organizational changes. These include changes to business processes, reporting formats, working methods and collaboration. The main focus here is on collaboration between team members and departments as well as between customers and external stakeholders.
Employee Resistance
In some cases, your employees will resist the changes that come with the new ERP system. And that’s perfectly normal. There are different reasons for this. Some employees may be afraid of not having the necessary skills and know-how to deal with the new technology. As people love habits, they would often prefer things to stay the same. Another reason may be that they are afraid of too much transparency.
Informing, guiding and motivating Employees: the Tasks of Management
This is where management comes into play! In particular, employees need information on why the new software system is necessary - including explanations of the overarching business objectives of the project. They need to understand why some working methods and processes need to be changed. And what the possible impact on the team may be.
It is also about the interest of each stakeholder in the process. Clear decisions need to be made. And it’s about motivating employees, even or especially when some of them lose heart in difficult moments or sometimes lack an overview.
Management needs to do more than just sign a Contract
Often, management still believes that signing the contract for the software is all they need to contribute to the entire project. This is a big misconception!
To prevent the failure of the ERP project, it is incredibly important that management becomes aware of what consequences (positive as well as negative) their decisions can have. This also (or especially) includes the right way of dealing with the employees involved within the transformation process.