ERP project: How to avoid a false start

An ERP project not only renews the technological backbone of a company. It often also transforms business processes and thus changes the everyday working lives of large parts of the workforce. For this reason, companies should make some elementary considerations at the very beginning, well before software selection:

Clarify the why, wherefore, why

When inventory is taken every few months because the stock level is not correct or the management has to wait days for evaluations, it is clear that things are not running smoothly. Those who primarily try to iron out such pressure points by changing an ERP system will fall short of their potential. An ERP implementation is also an opportunity to "hit the big time": companies should be clear about what they want to achieve in the future and what they need to do so. With questions like: How do we want to work in the coming years? Where do we see opportunities for viable business models? this process can be initiated.

Organizational hurdles: Tracking down "layers of paralysis

In many places, home-grown problems and organizational blockades prevent an efficient flow of information. Axel Winkelmann draws comparisons here with impermeable layers of clay - or "layers of paralysis". In this context, continuity is just as important for business operations as it is for project organization - so that targets and instructions from management reach all levels. But above all, so that suggestions and input from the workforce get through to the top - and don't get stuck somewhere in the middle at a "yes, but".

Speaking of project organization: Incorrectly set up teams repeatedly lead to the failure of an ERP project. The cardinal mistake: hanging it up in the IT department alone. "How is the IT department supposed to discuss organizational measures ... and then ... also implement them? That is factually impossible. So we always need the controlling hand in this project, always the foresight of someone who has an overview of the entire company," Axel Winkelmann emphasizes.

From time to dough: setting the economic framework

In addition to the budget question, the issue of timing also needs to be addressed early on: Are there seasonal peaks or other deadlines that need to be taken into account? How can the necessary time be "freed up" for the project team? If you believe that you can burden employees with additional project work in their day-to-day business, you should not be surprised if their motivation leaves much to be desired. Winkelmann has a rule of thumb for estimating your own effort: "If an ERP consultant comes to you for one man-day, you can add another two and a half to three man-days of your own work.

Create clear communication structures

Practical experience shows: Projects that are run quietly are often in danger of failing. It is important to "bring employees along" and communicate openly about plans - be it through a regular newsletter or a speakers' corner in the cafeteria. It is important that the workforce is aware of what the management is up to. This increases commitment, perceived appreciation and ultimately the willingness of employees to work with the new software.

Everything from the beginning: Preparing change processes

In addition to technology, there are also organizational adjustments to be made: Departments, processes and rules and regulations are being reorganized. Not every employee will be enthusiastic about this. A project this large also stirs up fears. Simply wiping them away and ignoring them lowers motivation and promotes a blockade attitude. It is better to promote understanding for the resulting changes and give employees the opportunity to help shape them. The keyword here is demystification.

Wanting is human: anticipating conflicts

Of course, every department will try to map its processes and specifications one-to-one in the new system. Who wants to adapt to others, and certainly not to a software! Conflicts are inevitable. The ERP vendor's consultants are usually not considered impartial in this regard. It can be helpful to have a neutral third party at your side as a mediator, who can moderate and mediate if necessary. And it helps to make it clear right from the start: Adaptations are possible, but must not get out of hand at the expense of later upgradeability.

Solid data, solid business

Axel Winkelmann also advises specifying a company's data foundation as early as possible: What data does who need? Where does it come from and where does the information flow to afterwards? Initial requirements for the technology can also be defined at this early stage. Winkelmann warns against relying solely on a well-intentioned recommendation from a friend or business partner when choosing an ERP system. The risk that it will not fit one's own business model and vision of the future is very high.

Tap into sources of know-how

Very few companies have a great deal of experience with ERP implementations in-house. After all, companies tend to carry out such a project only every 10 years, and some even only every 20 to 25 years. Companies acquire the necessary know-how by bringing new employees on board and bringing in external support. After all, the manufacturer's consultants not only know the system well. With their experience in similar industries, they can also contribute best practices.

Get into action quickly

"It's no use preparing a perfectly planned ERP project for five years and still not getting it done," warns expert Winkelmann. Because in case of doubt, the competition is already implementing the digital advantages that you're still chewing over out of concern that you're overlooking something essential. The way out of this predicament? Work with prototypes and select software that can be configured to a large extent.

And last but not least, according to Winkelmann, a lot also depends on the right expectation management: Not everything in the process flows will improve in one fell swoop. But in combination, a well-prepared ERP project means that the company as a whole is properly positioned for digitization and can do many things differently and better than before.

Source: www.proalpha.com