The Human Factor in The ROI Equation: Technology is Useless Without Your People Using It Effectively

Does this sound familiar? You try implementing new technology systems only to feel like you're walking across a tightrope juggling 10 heavy balls - of different shapes and sizes - in the air all at once. Even when you think you've got it under control, you feel the tension, pressure, and resistance of being on the tightrope. It requires a delicate balance to make it across smoothly without dropping a ball.

ERP (Enterprise Resource Planning) has become increasingly popular as a way for organizations to consolidate business operations on one common technology platform, commonly integrating tasks that previously required 20, 30, or even 50 separate legacy systems. But here's the rub: ERP systems - like SAP, PeopleSoft, and Oracle - can affect nearly every aspect of an organization's business. Effectively implementing ERP requires simultaneous stakeholder commitment, a strong project work plan, and sustained employee involvement before, during and after the implementation. Without these critical components, these ERP systems actually have a better chance of failing than succeeding.

Plus Delta's approach for managing large-scale, complex ERP systems implementation initiatives is designed specifically to bridge the gap between the technical and human sides of systems change. By increasing user acceptance and improving the chances for a smooth and successful transition process, the Plus Delta approach focuses on five key areas:


1.
Organizational Alignment: Before getting too far into the change process, it's critical to assess the impact that the new ERP system will have on the organization. Aligning the organization around the change effort will allow identification of the potential impact to existing jobs and to realign the organization to meet the changing business requirements.
2. Communications: Effective communication is critical to the success of an ERP implementation.  This is more than merely conveying vital information.  It's the glue that binds key stakeholders to the project's vision, mission, goals and objectives.  Without effective communication, rumors, hearsay, and innuendos are likely to take over and drive the initiative.

3.
Stakeholder Management: Stakeholder commitment often turns out to be a "make or break" factor in determining the success of an ERP systems initiative.  With it, you will do great.  Without it, you will struggle an uphill battle all the way to the end.

4.
Training and Development: Often times during an ERP implementation, employees need new skills.  Effective training helps employees perform their jobs better using the new system.  Educating managers as well as staff on new processes and then preparing them to use the new technology are essential aspects of any successful implementation effort.
5.
Team Effectiveness: You must recognize and reward exceptional team achievements as major milestones are reached.  Team-focused initiatives enhance the overall performance of the project and help ensure its long-term viability and success.
     
The technical challenges with ERP initiatives are the easy problems to manage. The greatest challenge in ERP implementation is managing the human side of change. It's about organizational readiness, people, and change. When implemented successfully, ERP systems can bring tremendous benefits to an organization by reducing IT operating costs enterprise wide and providing integrated best business practices. It can also increase productivity and revenue growth through business process improvements and automation without increased headcount.

Utilizing Plus Delta's proven change management methodology provides clear business benefits when implementing ERP systems. It generates visible executive involvement and alignment throughout the project. And it generates decreased resistance through enhanced employee participation and understanding of the project objectives. The fact is that sustainable change will only occur when individuals are ready, willing and able to complete the transition process.

Can Plus Delta help improve the success of your technology change initiatives? To learn more about our Change Management methodology, please call Dr. Jeremy Lurey directly at (866) PLS-DLTA or send him an email at jslurey@plusdelta.net. You can also visit the Change Management page of our website for more information.

Note: This feature was originally published and distributed in Plus Delta Consulting’s e-newsletter in December 2005.