The Role of Learning in ERP Organizational Change Success

What is Organizational Change and Learning?

Organizational change and learning are interrelated concepts that are crucial for the success of any organization. Organizational change refers to the process of implementing new strategies, technologies, or processes within an organization to improve its overall performance. On the other hand, learning refers to the acquisition of knowledge, skills, and behaviors that enhance an individual’s ability to perform a task or role. In the context of organizational change, learning is critical because it enables individuals and teams to adapt to new systems, processes, and ways of working.

As stated by Gartner, “organizational change management is a systematic approach and application of knowledge, tools, and resources to deal with change.” This means that effective organizational change management requires a focus on both the technical aspects of change, such as new technologies or processes, as well as the people aspects of change, such as learning and development. By emphasizing the importance of learning in the context of organizational change, organizations can better manage the challenges and opportunities presented by change, and ultimately achieve their goals and objectives.

Examples of Relevant Research on ERP Organizational Change

• “Several researchers have emphasized the significance of organizational learning in the success of ERP implementations (Scott & Vessey, 2018; Stratman & Roth, 2018). 
• Scott and Vessey (2018) noted that despite the well-known issues related to ERP implementations, they remain problematic. They suggested that organizational learning is implicitly and indirectly associated with success. 
• Stratman and Roth (2018) identified ERP training and learning as essential elements of ERP competence. They defined ERP training as the process of teaching various user groups to use the system efficiently in their day-to-day activities, and emphasized the importance of ongoing training and review sessions. They also noted that learning activities aim to identify cutting-edge ERP techniques and pilot-test them for delivering business value in day-to-day operations. 
• Rouhani and Ravasan (2012) developed an expert system to predict ERP post-implementation success based on organizational profiles. They suggested that training and education of the project team is a crucial dimension and factor in ERP readiness assessment. 
• Shao, Feng, and Hu (2017) examined the impacts of exploitative and exploratory learning approaches on ERP assimilation and found that exploitative learning dominates ERP assimilation compared to exploratory learning. 

ERP Organizational Change Practitioners Wear Many Hats…and Teacher Is One of Them

As ERP organizational change practitioners, we need to understand that in order to allow technology (ERP) to effectively and efficiently work for business, it requires the right combination of knowledge and management of the triad: people, processes, and technology. And many practitioners have a sound knowledge of ERP technologies and emerging technologies, are experts in ERP system selection, certified project managers (PMPs), have an understanding of project management techniques, tools, tactics, and best practices, and have a level of expertise in business processes and business process re-engineering. They also possess “soft skills”, “people skills”, management skills, and leadership skills required to endorse positive change. However, for these skills to be useful, they have to be effectively taught. That is, knowledge needs to be effectively transferred to the organizational stakeholders. ERP organizational change practitioners are teachers.

Effective Learning is Essential for Successful ERP Organizational Change

ERP organizational change research and practice understand that the ideas around organizational learning can not just simply be understood. And the ideas around the importance of effective and efficient learning need to be actionable, based on principle, and represented as tactical items in an ERP organizational change game plan. Otherwise, the knowledge (if understood) is not being applied. This knowledge could then be underutilized and therefore not effective nor bringing value to the organizational change effort. The value of ERP organizational learning and education of stakeholders in a way that best transfers training and knowledge to “the floor” is invaluable. Not acting upon the value of sound learning knowledge and principles is merely treating “learning” as a buzzword. Or, in other words, it’s “all bark and no bite”, “all talk and no walk”, “all sizzle and no steak”….

ERP organizational change professionals are indeed teachers. Because they not only need to understand sound learning and development principles but these principles need to be soundly acted upon. Effective and efficient stakeholder learning and education have a significant impact on ERP organizational change success.

The Role of Learning in Organizational Change

The role of learning has a significant place in ERP organizational change success. As much as the other two components of the ERP organizational change triad (technology and process), organizational and individual learning, effective and efficient training, knowledge sharing, transfer of knowledge, and education are crucial to the success of ERP organizational change project plans. Therefore, perhaps ERP organizational change project plans would benefit from approaching change with increased awareness and application of learning and development techniques and principles that best advocate for organizational learning, and therefore ERP organizational change success.

“Although education is a cornerstone of ERP implementation, the user training is usually only emphasized, and the courses are centered on computer/system operation rather than on understanding the ERP concept and spirit.” (Yu,2013)

The Significance of Learning in Organizational Change

What does vendor-neutral and objective research tell us? Much extant work would suggest that as ERP organizational change practitioners, we would benefit from exploring and applying key ideas derived from Learning and Development research and practice. After all, “organizational learning” essentially represents the holistic accumulation of individual human learning. “The strength of the team is each individual member. The strength of each member is the team.” –Phil Jackson

This notion of the role of effective learning is supported by a great deal of sound research in the field of ERP organizational change. Additionally, a plethora of studies has shown that effective learning is essential for the success of ERP organizational change projects. For instance, a study by Sabherwal et al. (2001) found that learning is a critical factor in the success of ERP implementation. Similarly, in their study, Gunasekaran and Ngai (2004) also found that training and education are important factors that contribute to ERP success.

Examples of successful ERP organizational change projects that benefited from learning and development principles:

• Company A was a manufacturing firm that decided to implement a new ERP system to improve efficiency and accuracy. They developed a comprehensive training program for all employees, including hands-on simulations and online courses. The training helped employees understand how to use the new system and its benefits, which resulted in a smooth transition and increased productivity. The company also provided ongoing training to ensure employees continued to use the system effectively.

• Company B was a financial services firm that underwent a major merger and acquisition. As part of the integration process, they decided to implement a new ERP system to streamline their operations. The company invested in a robust change management program that included employee training and development. The program helped employees understand the rationale behind the changes and how to use the new system effectively. This led to a successful integration and improved business outcomes for the company.