Wednesday, February 22, 2012

Embrace organizational change management principles to improve ...

2/21/2012 at 1:33 pm by The Sage ERP Team

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If ERP systems were only minor additions to any company's functionality, it wouldn't be terribly difficult to integrate them into day-to-day operations. However, the main benefits of enterprise resource planning systems derive from their ability to radically alter how organizations function. The power to record supplies and materials in great detail and project future needs and inventory is something that will in theory offer vast improvements.

This kind of abrupt alteration to company operations isn't something that can be done at a drop of a hat. When working closely with a software vendor, ERP systems can be efficiently and smoothly added to an organization's functions. Nevertheless, a great deal of planning and research is necessary before an organization will be able to properly do so. Such installations require a firm grasp and embrace of the principles of organizational change management, since what's going on is a significant tinkering with a business' structure and activities. Here are some important aspects of organizational change management to keep in mind when mulling an implementation.

Willingness to change
The most important quality that a supervisor or manager should possess when overseeing an enterprise resource planning system is a willingness to significantly change how a company functions. Some professionals might realize that they're going to need to shake things up a bit, but the more supportive of massive change that a person or group of executives is, the more likely a new business model can be built around an ERP system. Half-measures and partial changes only serve to limit what business software is capable of doing.

Scope and power
One of the biggest mistakes an organization can make when embracing ERP systems is to give authority to people who aren't high enough in the hierarchy of a company. When top-level executives and ownership aren't involved in ERP planning, subordinates will constantly have to get financial and structural approval for every significant action. This will hamper an implementation and keep a business from going forward with improved and increasingly efficient operations. Give ultimate authority to trusted employees or give the reins to an existing authority figure.

Integrated vision
When a company undergoes organizational change, it's crucial to make sure that people in charge have some idea of what a business will resemble when all is said and done. It is very easy to go into an enterprise resource planning implementation with only some loose and ill-defined notions about what business software will do for a company, but this will result in poorly optimized functions and operations. Give an enterprise a clear form and set of functions for its post-implementation existence.

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The Sage ERP team report on various topics related to ERP and business management.

Source: http://blog.sageerpsolutions.com/embrace-organizational-change-management-principles-to-improve-erp-implementations/

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