The Post Go-Live Stabilization Dip is a Reality

Preparing For The Post Go-Live Stabilization Dip

The post go live productivity dip deserves attention. ERP success and organization change doesn’t end, and isn’t determined, just when you “hit the switch”. In fact, it is really just the beginning of opportunities for continuous organizational improvements and the realization of benefits and ROI. And, the value of formal and informal learning and training doesn’t stop after you “hit the switch”. During the pre go live phase, preparation and readiness training needs to consist of effective and efficient organizational stakeholder learning. This learning should be executed with a scaffolding approach such that the learning process is effective. This learning should address conceptional as well as functional ERP learning. It should include user acceptance testing (UAT), conference room piloting (CRP), and formal and official sign-off among other best practices founded in principle in order to ensure proper training.

Pre Go Live Training Is Just Half of Post Go Live

But, even given and assuming an effective and efficient pre-go-live training program, that’s really just the start. It is one thing to learn in a pre go live environment, it is another thing to learn on the job in a “real world” environment after the go-live. More to come on this in future posts, but to a certain degree, the transition past the post go-live stabilization and productivity dip is a function of human learning and the application of effective ERP organizational change learning programs. We are going to discuss the post go live productivity dip further on upcoming posts and articles, but there are multiple reasons for this dip. The key is not to just try to mitigate the productivity dip as much as possible (via the most effective and effect pre-go-live training), but to also just acknowledge and be honest about it, and then be prepared with tangible and effective post-go-live tactical actions that help ensure the transition past this productivity dip.

Key Post Go-Live Stabilization Success Concepts

Application of Learning From Pre Go Live Training

One major and primary key to post go-live transition and stabilization success comes with; 1) a continuous learning program, 2) effective and efficient transfer of knowledge to the workplace, and 3) and proper measurement, adjustment, and support for the application of the knowledge that was gained in pre go live training.

In their book “Four Levels of Training Evaluation”, page 35, Kirkpatrick and Kirkpatrick discuss how “Reinforcement that occurs after the learning event produces the highest level of learning effectiveness, followed by activities that occur before the learning event, yet each typically garners only 5 percent of the training time and budget”. Essentially what Kirkpatrick and Kirkpatrick are stating is that there is great value in transfer and application from the training room to operations. And, this is certainly no less true in the context of ERP organizational change. Kirkpatrick and Kirkpatrick also note that (provided and assumed you have an effective and efficient pre-training program), “…when desired program outcomes are not achieved, the cause is usually found on the job, not in lack of knowledge or skill. It is seldom necessary to send employees back to the classroom.”, again, assuming proper, effective, and efficient training. Kirkpatrick and Kirkpatrick are simply stating the value of transfer and application of training to the “real world” environment and that lack of application can often be a significant gap in effective learning and hence desired business results.

Therefore, your ERP organizational change plan would benefit from the points of Kirkpatrick and Kirkpatrick in that pre go live classroom training and evaluation is just a part of success, the successful application is also critical. And the successful application needs to be wholly advocated and endorsed by the organization.

Kirkpatrick and Kirkpatrick are basically telling us ERP Organizational change practitioners that effective training as well as training expectations, evaluations, and the application doesn’t end after the classroom UATs and CRPs. So then, the ERP organizational change plan must have concrete, specific, organizationally aligned action items in order to ensure that training and its application is effective. This will help organizations accelerate past the known, factual, expected, and accepted (to a certain degree) post-go-live productivity dip.

Understanding That Success & Realized Benefits Aren’t Always Immediate

In “Firm Performance Effects in Relation to the Implementation and Use of Enterprise Resource Planning Systems”, Nicolaou (2011) states that ERP implementation represents a significant commitment that impacts nearly all business processes. Nicolaou also states that given the sheer nature of ERP, benefits aren’t and can’t all be realized within a short time frame. Nicolaou (2011) suggests that ROI and expected benefits can be a longer-term realization. Nicolaou further adds that the “return on assets and return on investment were negatively affected by ERP adoption in the year of and following system completion”. In other words, success and realized benefits aren’t always immediate and fully realized just because an organization “hit the switch”.

Moreover, in “Effect of enterprise resource planning implementation on organizational productivity.” Newlin (2009) states a great and true point, “ERPs evolve as they make their way through a life cycle, usually starting with conception and ending with a new way of doing business”. Newlin also describes the post go live productivity dip as: