How to prepare your company for ERP system implementation: HR management

So, you decided on conceptual changes in the business processes of your company. Horizons and financial plans already promise a return on investment and new, improved performance. But to ban a really significant event for the company can, trivial, your employees. Why and how to prepare personnel for the implementation of ERP in the company - we will tell you from our experience.

Why do you need to prepare your staff for ERP implementation?

According to the report of SAS The Enterprise AI Promise for 2018, the key obstacle in the implementation of ERP system is precisely the fact of distrust of about 49% of employees to new technologies. This fact is also confirmed by the results of Panorama Consulting research, according to which it is organizational issues that are key in increasing the period of automation systems implementation.

Thus, according to the model of response to changes, only half of employees accept the implementation of new technologies, while the rest are at one of the 4 stages:

  • Denials;
  • Anger;
  • Bargain;
  • Depressions.

Based on our observations in the implementation of ERP systems in companies with 10 to 1000 employees in different countries, we have identified key ways to work with human resources. They will help not only to smoothly implement the software, but also to increase the involvement of employees in the process to enhance the efficiency of innovations.

Justifying the importance of ERP systems: working with employee rejection

The key reason why staff are not ready to assist management in changing business processes is that they are not in dialogue.

According to statistics, 40-80% of implementation failures are due to poor planning and preparation.

It is important for your business, and it is also important for you, to what extent employees "will approve" the implementation of an automated system.

  1.   Share the figures that justify the financial benefit to the company when implementing ERP.
  2.   Tell the specific benefits for each department.
  3.   Build a dialogue, not a monologue, where you can answer the questions of those who really doubt the success of the "idea".

How to deal with employee negativity while implementing an automated system

Anger is an understandable reaction if your footage experiences fear of technical changes. Fear is natural behavior when people do not understand change.

From GeneralSoft LTD's practice, 11% of companies still use demo videos as the only way to educate their staff about ERP systems.

Comprehensive training, provided by all software vendors on the market without exception, is an important step to ensure effective results.

Thus, according to a study by Panorama Consulting in 2019, 58% of companies exceed the planned terms of software integration. And one of the most significant reasons for this is the lack of proper training system.

Manipulation of the situation: how to avoid insider disruptions of IT products

Under observations of our experts, during introduction of ERP-systems many experts see in a set of the automated processes threat for itself and the work. On a wave of such moods in the company there are "insiders" who start to conduct bargain: to offer growth of results thanks to increase in working hours of experts, improvement of a financial situation through staff reduction and so on.

The company management should be ready for such "insider" disruptions of the project. The best decision at occurrence of conflict situations is to appoint "rebels" responsible for success of process of ERP-system introduction. It will allow to eliminate an obstacle without loss of the expert significant for the company. After all, according to statistics, at dismissal of the employee the company loses the sum which even above expenses for its attraction in an annual equivalent.

Reasonless decrease of labor productivity: fighting with the help of involvement of

Another strong signal that not all employees of the company have adopted an innovative approach to business process management is an unreasonable decrease in productivity. Often, this can lead to an increase in staff turnover. The most effective way in this situation is to work with the involvement of specialists, best of all by example.

Thus, a part of the personnel, which has not yet fully accepted the already completed implementation of ERP-system, demotivates business by reducing the overall performance of the company. Start of a new project, search for extraordinary ideas or launch of volunteer programs are the ways to eliminate negative excitement. In such a situation, the management, preferably on its own example, should show that the time released at the early completion of routine work thanks to convenient tools ERP can be put in a positive direction.

Human resources management is an important element in the process of technical change

According to a survey by Panorama Consulting in 2019, 53% of companies rated organizational changes as the most difficult for business in the process of implementing ERP (compared to 44% who consider these technical aspects). So consider the working climate in your company, communicate with your employees, involve your staff, and get the most out of your automation systems.

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