Influences of Successful ERP Implementation
ERP success requires that an organization be aware of the potential influences that can lead to success or failure. In addition, success is in the details. For your consideration and reflection, here is a quick reference sheet for some of the common themes of what many career ERP professionals that are the “boots on the ground”, as well as ERP academic researchers, have to say about ERP organizational change. More and greater research is being done on successful ERP implementation models and success factors. There are many understood ERP success influences. Depending on your context, the emphasis needed on any given influence will vary. But these influences exist and may increase or decrease throughout the life cycle of an ERP organizational change effort.
Interdisciplinary Perspectives on Successful ERP Implementation
ERP project success is being viewed more and more from the perspectives of different fields, ideas, and concepts and not just from a traditional IT (systems, hardware, and software) perspective. Although successful ERP system assimilation brings with it a whole host of technical factors, it is through organizational change impacts that leadership theory, organizational psychology, management theory, stakeholder theory, and contingency theory (to name just a few fields) intersect in a major way with ERP projects. Numerous fields now inform such change efforts beyond the technological elements ERP success/failure. ERP design and implementation projects (and failure prevention) need serious attention because they have significant organizational change impacts and can provide solutions to significant business problems unique to today’s business activity. Here are just a few general ideas that you may find helpful for consideration and reflection. Some of our own experiences, our colleague’s experiences, recent case studies, and applied research tells us important points to consider for those facilitating ERP organizational change efforts.
The 12 Critical (But Not So Common) Tips
Here are some critical factors for successful ERP implementation. These highlighting insights are from both ERP professionals and academic researchers. It stresses that successful ERP implementation is not solely dependent on technical aspects but also on organizational change and culture impacts. Here are the key points:
- Understanding Organizational Culture: Conducting an organizational culture assessment is crucial as it informs behaviors and values that affect ERP implementation.
- ERP Visioning and Stated Purpose: Clearly articulating the mission, values, and objectives of the ERP project is essential for alignment and steering behavior.
- Democratic Process: Involving stakeholders at various levels ensures commitment and ownership while avoiding top-down imposition or decision-making by committee.
- Executive Leadership Styles: Transformational leadership, emphasizing listening, creativity, and motivation, is vital for successful ERP projects.
- Leader Member Exchange (LMX): Interactions between leaders and followers should be balanced to enhance team accomplishment.
- Executive Team Participation: Visible commitment from the executive team is crucial for project success and organizational learning.
- Organizational Diversity: Leveraging diverse teams can enhance organizational capability, but diversity needs to be managed effectively to avoid negative consequences.
- Understanding Stakeholder Relationships: Effective communication and mediation between stakeholders are essential for project alignment and success.
- Managing Emotions: Acknowledging and addressing emotions within the organization is crucial to prevent toxic behaviors that can hinder progress.
- Employee Education and Learning: Providing continuous education and training to employees is essential for successful ERP implementation.
- Communication and Stakeholder Alignment: Clear, frequent, and bi-directional communication ensures alignment with project objectives and builds trust among stakeholders.
- Political Dynamics and Vested Interests: Acknowledging and understanding political factors within the organization can help navigate potential conflicts and ensure focus on delivering business functionality.
These “tips” emphasizes the multifaceted nature of ERP organizational change and the importance of considering various factors beyond technical aspects for successful ERP implementation.
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