Private Equity and ERP Organizational Change Research Actually Have a Lot in Common
Private Equity (PE) and ERP organizational change research have the same goals and objectives. For example:
- PE and Enterprise Resource Planning (ERP) Organizational Change Research has a primary goal of solving real, and not the perceived, issues in assuring organizational change success.
- Are highly motivated to contribute to and create a vibrant, healthy, and sustainable business.
- Seek to improve organizational performance in the most effective and efficient manner possible by properly and appropriately leveraging resources.
- They focus on the appropriate and effective expenditure of time, money, and effort in the organizational performance improvement process.
- Improve organizational business intelligence and dollar tracking (ERP transactions represent dollars).
- Contribute to a sustainable high-level of organizational performance.
- Focus on preventing failure and properly mitigating risk.
Private Equity and ERP Organizational Change Research Are Both Driven By Demand
Just like there are an opportunity and demand for PE to invest in and improve businesses, ERP organizational change is also driven by demand. Moreover, they both seek the same reward, a self-sustaining, healthy, and vibrant organization. After all, if large scale ERP organizational change were easy and risk-free (that is, no demand), then 1) objective vendor-neutral research would be wrong, 2) there would be no need for ERP rescue, 3) ERP litigation and expert witness services would not be required (there are ample law firms and professional firms that provide this service), and 4) professional researchers would not be spending significant cost, incredible time, and a great deal of effort trying to solve a problem that doesn’t exist. Research is typically driven by a demand to solve a problem or to address a gap or offer insight, innovation, and creativity for the improvement and advancement of a particular field, service, product, or business.
Anyone that has spent any time in the field of ERP organizational change knows that there exist many, often invisible, organizational, knowledge, and motivational influences. There are relatively successful large-scale projects and on the flip-side, there are projects that struggle significantly. But they all have one thing in common, significant challenges and learning curves are more often the norm. Any experienced “boots on the ground” practitioner, if being honest, will be the first to say that ERP organizational change is a tough business. Vendor-neutral and objective research knows that well too. This understood problem has driven the demand for significant ERP organizational change research.
Therefore, the key for PE as well as ERP organizational change research is not to only try to prevent any/all issues and challenges (that’s impossible), but also to handle them appropriately by knowing and addressing the root issues when they rise to the surface.
Private Equity and ERP Organizational Change Research Are Both About Successful Organizational Transformation
ERP organizational change research is being viewed from many different perspectives and fields. Successful ERP organizational change goes well beyond IT solutions and project management techniques and tactics. Organizations consist of people and processes as well. Therefore, ERP organizational change research considers looking at ERP projects, for example, from the lens of leadership theory, stakeholder theory, diversity, psychology, and the list goes on. Over the last decade in particular, more study is being done among practitioners and in academia research looking for ERP “success models” and “critical success factors (CSF)”. Scholars and practitioners continue the search to find common denominators in considering all possible influences upon ERP organizational change success. ERP assimilation failure is a significant problem directly related to many complex and dynamic critical success factors. What some of the results and findings suggest may not only provide insight but be new information for organizational leadership reflection and application.
Demands For Both PE Business Success As Well As For ERP Organizational Change Success is Significant
There are tough conversations that occur in boardrooms all across the country. Practitioners, business owners, executives, stakeholders, and employees often experience significant organizational challenges due to business growth, business correction, or challenging and changing business environments that place great strain on organizations. Companies are constantly under great demand to be competitive, innovative, and creative (yet with diminishing resources) in an effort to stay relevant and competitive and to maintain a healthy organization. For an organization to remain healthy, the business environment and position have to be clearly understood and this requires business intelligence. Accurate and timely information is one of the most important assets, next to their people, that allows businesses to react quickly and appropriately to ever-changing business conditions. Both PE firms and ERP organizational change research understand this well.
Sometimes remaining competitive and healthy requires significant organizational change. And two of those change agents are PE and effective ERP assimilation. They both are agents to drive organizational improvements and to create or maintain a competitive advantage.
ERP Organizational Change Research is a Significant Value Proposition for Private Equity
To quote Wikipedia, “A value proposition is a promise of value to be delivered, communicated, and acknowledged.” ERP organizational change research offers a significant toolbox of resources, that if only reflected upon and then applied, could perhaps further advocate for and support successful organizational transformation.
Moral of the Story
PE and ERP organizational change research have the same goals and objectives in common. ERP organizational change research is not only a value proposition for Private Equity, but also makes a great partner in advocating for successful and sustaining organizational transformation.
“A private equity investment will generally be made by a private equity firm, a venture capital firm or an angel investor. Each of these categories of investors has its own set of goals, preferences and investment strategies; however, all provide working capital to a target company to nurture expansion, new-product development, or restructuring of the company’s operations, management, or ownership.” https://en.wikipedia.org/wiki/Private_equity
And, to accomplish this in an effective and sustainable way, this goal often requires effective and efficient business information, effective and improved business process, and effective organizational change: the same goals as ERP organizational change,
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