Adjustment to Change Continues to Plague Organizations Implementing ERP Software
It is more difficult for a company implementing enterprise resource planning (ERP) software to adapt to the inherent process and organizational changes than it is to implement the technology, according to the 2013 ERP Report: Organizational Change and Business Process Management issued today by Panorama Consulting Solutions, an independent ERP consulting firm in Denver. Sixty-five-percent of online polling respondents indicated that adjustment to process and organizational changes was “difficult” or “very difficult” and only three-percent indicated it was “easy.” Conversely, 15-percent of respondents characterized the technical aspects of implementation as “easy” or “very easy” and 45-percent indicated they were “difficult” or “very difficult.”
“Organizations often make the mistake of thinking that the technical aspects of an enterprise software implementation pose the most risk,” said Eric Kimberling, managing partner of Panorama Consulting Solutions. “But it is truly the ways in which companies choose to manage (or not to manage) the business process changes during an ERP initiative that have the most correlation to project failure.”
Although 41-percent of respondents experienced operational disruption at go-live, 56-percent still cited “resistance to change” as the key challenge of implementation. Other challenges included “internal resistance to changing the ‘old’ processes” (38-percent), “lack of clear expectations and goals” (36-percent) and “lack of overall vision” (32-percent). Further, more than half of respondents who suffered timeline overages (55-percent) indicated that they were caused by “organizational issues,” including governance, resistance to change and process redesign.
“While organizations certainly need to reduce the propensity and impact of any disruption at go-live, poor organizational change management will ultimately cause the most – and longest lasting – harm to the company,” said Kimberling. “An ERP implementation necessitates enterprise-wide changes that are incredibly stressful to the workforce. An organization that is myopically focused on technological tasks will miss the opportunity to engage its people, support them through the adjustment period and, ultimately, achieve true ROI on the software investment.”
To offer further analysis of the study results, Kimberling will present a free webinar on Thursday, May 16 at 12 p.m. EST. Registration is open at http://panorama-consulting.com/resource-center/erp-webinars/.
About Panorama Consulting Solutions 2012 ERP Report: Organizational Change and Business Process Management
Data for the 2013 ERP Report was collected by Panorama Consulting Solutions via online polling on its website. Information was collected from September 2012 to January 2013. The 172 participants represent organizations that have worked on ERP initiatives within the last year. The full report can be accessed at: http://panorama-consulting.com/resource-center/2013-erp-report-organizational-change-and-business-process-management/.
About Panorama Consulting Solutions
Headquartered in Denver, Panorama Consulting Solutions is an IT consulting firm specializing in the enterprise resource planning (ERP) market for mid- to large-sized organizations around the world. Independent of affiliation, Panorama facilitates the evaluation and selection of ERP software, manages ERP implementation, and expedites all related organizational change to ensure that each of its clients realize the full business benefits of their ERP systems. Panorama maintains a global presence with current and planned offices in Chicago, New York, Washington, D.C., San Francisco, London, Shanghai and Dubai.