A successful enterprise resource planning (ERP) initiative requires more than technology. It demands a diverse team, strong alignment with business goals, and employee engagement. Discover how to avoid common ERP failures by building the right team and including stakeholder involvement from day one.
The ERP vision
Define the desired business outcomes and vision for the ERP initiative from the get-go. A clear and inspiring vision of the ERP initiative’s future value helps stakeholders see its importance. To keep stakeholder support during the ERP project, leaders need a vision that aligns with everyone’s perspectives and concerns.
Align with business goals
For an ERP to work, it must align with your company's strategic goals. Misalignment leads to frustration and poor results. CIOs must ensure ERP initiatives reflect broader business objectives from the start.
Stakeholders: Cognitive diversity matters
ERPs that ignore stakeholder engagement often fail to meet business expectations. Coordinate with the organisation to identify the project's best stakeholders.
Business managers of each business unit are one such example. They must understand early on what impact the ERP initiative, or business transformation project, will have on their teams and business area.
A successful ERP transformation needs a diverse set of stakeholders. All with different viewpoints, skill sets, and experiences. This cognitive diversity sparks innovation and challenges traditional thinking and the status quo. Diverse thinking leads to better alignment with business outcomes. In short, diversity drives ERP success.
Engage employees early
Employee buy-in is crucial. Without their enthusiasm, even the best ERP strategy will struggle. One of the biggest challenges of digital transformation is people. Employees are comfortable working in specific ways, and change is challenging. Often, employees will resist changes to established processes, systems, and working practices, making it more difficult to implement ERP.
ERP initiatives get more support when leaders commit to improving the employee experience. Address employee concerns by showing how the ERP system will solve their pain points and improve their experience at work. Use a “what’s in it for me?” approach to highlight the benefits to the business and employees. Involvement from the start nurtures support. Turn potential resistance into support by involving an end user as a champion or superuser. Such employees should have credibility with end users and business managers, a positive attitude, a growth mindset, and a commitment to the role.
Ongoing stakeholder engagement
Not only should you involve stakeholders early on, engage with stakeholders continuously. This will ensure the initiative aligns with company goals and avoids unnecessary failures. You can connect with stakeholders and end users through workshops and update sessions. These opportunities enable ERP teams to identify challenges and work on solutions.
The ERP implementation team
Winning ERP projects need skilled and diverse teams that can work together. Building an ERP team starts with hiring the right people. Choosing the right type of ERP professionals is based on company needs and project goals. In-house staff have a solid understanding of the company’s processes and culture but in-house tech teams may lack specialised skills or experience with the latest ERP technologies. This can limit the project’s scope and success.
Hiring the right team
New hires might have ideas, methodologies, or approaches that internal teams won’t have considered. Permanent hires can develop a long-term commitment to the company and its ERP system.
Contractors can bring fresh perspectives to a project. ERP contractors are seasoned professionals. Often, they have worked on different ERP implementation projects and have experience with related assignments.
Your ERP team needs
- Relevant skills and industry experience
- Knowledge of the chosen ERP system
- Understanding of the business processes
- To identify risks
- To be able to navigate common challenges
Common ERP Roles include
- Programme Manager
- Project/delivery managers
- Business analysts
- Implementation and technical experts
- Solution architects/ technical architects
- IT contractors
- Software developers
- QA specialists
- Change management specialists
Finally, create roles that proactively check for problems and facilitate continuous engagement. Prioritise diversity - seek individuals with different skill sets and experiences. This diversity helps drive innovation and problem-solving during the project.
Avoiding ERP failures
According to Gartner Research What IT Leaders Must Do to Avoid Disappointing ERP Initiatives, published in May 2024, by 2027, more than 70% of recently implemented ERP initiatives will fail to meet their business goals.
Common reasons for ERP failures include:
- Gaps between end-user expectations and the delivered solution
- Misalignment of ERP strategies with business goals
- Resistance to change among end users.
Building a high-performing ERP team helps avoid the common pitfalls of ERP. It ensures a smooth journey towards digital transformation. ERP projects fail due to end-user resistance, missing skills, or misaligned goals. Investing in team diversity, aligning with corporate strategies, and engaging employees throughout the process will reduce these risks and increase your chances of success.
Good ERP implementation needs a strong, diverse team aligned with business goals, ongoing stakeholder engagement, and attention to the employee experience. Without these, ERP projects might not meet expectations. This leads to frustration, lost opportunities, and ROI.
Ensure your ERP project’s success with NU Concept Solutions. Avoid frustration and lost opportunities—partner with us today! Email This email address is being protected from spambots. You need JavaScript enabled to view it. or call us on 0330 058 3400.