ERP Organizational Change and Learning
ERP organizational change practitioners understand, agree, approve, and/or assume the value of organizational learning in concept and spirit. But, your ERP organizational change plan should include concrete, tangible, and measurable actions that support, promote, and improve organizational learning.
Learning Curve during ERP Implementation
There is often a significant learning curve for organizations during ERP implementation. A culture of organizational learning helps organizations to capitalize on errors, mistakes, and lessons learned. Portfolio acquisition can be a time of significant organizational changes in terms of process, people, and technology. There are lots of balls to juggle. But none-the-less, the value of organizational learning has to be maintained as it is not only a significant ERP success factor but also a tool for ERP continuous improvement.
Key Considerations for Success
All agree with the potential value of ERP and there are of course successful ERP organizational change efforts. The goal of the ERP practitioner ought not to be simply the success of an ERP organizational change effort, but also to execute an ERP program in a way that is most cost-effective and efficient as possible for the benefit of the organization. NOTE: ERP success, like ERP failure, can be quite subjective in definition and vary not only from organization to organization but from team member to team member within that organization. An organization’s or a team member’s definition, as well as perception, can very well change over time. Many organizational change efforts that start out “rough”, become over budget to plan, run overtime to plan, or don’t realize expected benefits and functionality can in fact turn out to be successful endeavors. It is just that they may utilize more than required or necessary organizational resources (time, money, and effort) to cross the finish line. But, a key to effectively and efficiently crossing the finish line lies in continuous organizational learning.
Continuous Learning for Success
ERP organizational change success factors are not just about realizing success, but also about realizing that success in the most efficient, effective, and timely way possible. The ERP organization change practice is about being focused on getting better, mitigating risks, and working through organizational challenges in an effort to realize the most efficient and effective use of organizational resources.
Learning from Challenges
Since ERP organizational change risks and challenges are 1) at some level to be expected even in the best of ERP organizational change efforts and 2) an honest reality even in the best of ERP organizational change efforts. Why not learn from the challenges? Why not implement a mechanism to ensure that learning takes place?
Scott and Vessey’s Insights
Scott and Vessey provided a study of organizational learning titled “Implementing enterprise resource planning systems: the role of learning from failure”. To use their own words, “We hope that this study will enable readers to better understand how to achieve this complex enterprise system phenomenon”. They figured/wondered if ” An analysis of multiple case studies of ERP implementations might reveal whether learning from failure could be generalized as an effective implementation strategy. Such a study might explore whether learning from failure differentiates among organizations that are satisfied with their ERP systems and those that are not.”
Scott and Vessey suggest that organizational learning concepts is key for ERP organizational change and they provided several “insights that could be useful to practitioners who will be faced with implementing an ERP system in the future, as well as for those who may be undertaking any kind of far-reaching, integrated system implementation such as those that will be necessary to conduct meaningful e-business”. Below are some of their key points:
- “Take a realistic view of the role technology can play in supporting your firm’s strategy; engage in a strategy of “small wins” or “small failures” to leverage knowledge gained.
- “Plan and manage the project; employ a strong project leader and a well-defined methodology so that changes during the project are addressed appropriately; even if there is insufficient knowledge to manage at the tactical level, ensure the effectiveness of high-level planning and management of the project.”
- “Learn from unforeseen circumstances; be flexible in adapting to changes in the business environment by adjusting at the project level; defer the Go Live date, reduce the project scope, change the number/ composition of teams, organize training, think tanks, etc.”
- “Recognize the importance of organizational culture; foster an open culture and encourage open communications to facilitate organizational learning.”
- “Consider using a phased or roll-out strategy to facilitate organizational learning and provide the opportunity for learning from (small) failures.”
This is great work and some great points of insight that skims the surface of organizational learning ideas, concepts, and facts. Their work and point should be well taken as practitioners: your ERP organizational change plan should include concrete, tangible, and measurable actions that support, promote, and improve organizational learning.
Nestell & Associates are ERP learning and development experts.