What steps can ERP buyers take to incentivize implementation performance from their internal people?

Also, another thing that can cause stagnation in an implementation is allowing fear of change to stop things in their tracks.

Those most impacted by a switch in ERP systems (and most prone to FUD*) are the folks who do the most repetitive data entry, like front office clerical functions. They are used to ‘the way we do it now’, and for a lot of these people, changing to a new ERP system can be perceived as a complete and permanent disruption to getting their job done. Even the best run implementations will not eliminate the up-front FUD, but a well implemented roll-out gets these people into training early and often, so they have a better feel for the system when they go live.

Don’t put off the conference room pilot training the implementation – be consistent in a schedule of putting folks in front of the new system so you keep that momentum rolling.

*FUD – Fear, Uncertainty and Doubt

Great question, Jon.

Everyone throughout the organization must believe that management is completely behind the project and will take any necessary action to ensure success. More importantly, employees need to be held accountable for their own performances, especially in smaller companies.

We, at ProfitKey, actually believe this question addresses the #1 reason why ERP implementations fail. We go into a little more detail in our blog discussing the same topic. Feel free to take a look, if you haven't already.

http://blog.profitkey.com/

Keep the Q&A coming!

Best,
Jason

Hi Jason,
I'm sure most would agree that management commitment is key - including companies whose management commitment wanes during the course of a project. What tangible steps can companies take to secure continued commitment?

Jonathon,

Incentives to increase the likelihood of success in an ERP system...either the company has the wrong employees or the systems are too hard to install that incentives have to be contrived. If it is incentives you seek...bribe them. Every employee at the end of the day is coin operated. If you want to get a certain behavior, reward them for it. Certainly many will argue that most employees are interested in doing a great job, seek reward but not necessarily money, blah, blah, blah. If you don't want to fire them; i.e. do this or your fired, then bribe them.

The one respondent pointed the finger at this problem as being the number one reason for project failure. The fact that employees fail to see the value, are resistant to change or lack the training to use an ERP isn't the fault of the employee.

The number one reason projects fail is because the customer doesn't want it? Who is the customer? Who said yes without 100% buy-in, and I mean 100%, from everyone else impacted? Impossible, you say? Not if the impact is substantially less than an ERP. If you won't do that, get out the check book to incentivize the employees and be prepared to be the number one reason the project fails.

There is a mix bag of reasons why FUD spread like a virus when ERP implementation - roll out takes place. Jason mentions one of the critical variables, "User Involvement", this key variable has to be accounted for from day 1 of project conception. With 100% support from senior and middle management, your job as PM is to showcase not only the added value, but also the intrinsic benefits of and ERP/MRP implementation to the end users / client, the day to day operators. In order to reduce resistance to implementation it is wise to run a pilot and show the key users the benefits, if possible on a one to one basis, if not,like Jason said, training sessions would work just fine for group no larger than 10 individuals.

If all the above has minimum impact on reducing the resistance level, use the shadow approach, bring in new blood, trained them and have them ready to take over the responsibility of those that pose a clear threat to the implementation. Once the rumor spreads that you have people ready to take over, that are 100% trained and pro-ERP, you will see the pieces fall into place.

Monetary compensation or any other form of incentive is considered transitory, this approach usually backfires and gives employees a stronghold that serves as bargaining tool for salary reviews, bonuses and others.

In todays technological environment, data capture can be perform with minimum human participation, make use of text and object recognition technologies to capture the data that fuels your ERP/MRP. Barcode is a great help, digitizing documents, implementing EDI, ASN and other data share tools, can help your implementation in reducing critical break points.