Sin #2: Lack of commitment from top management.

If company executives are not strongly committed to the system, do not foresee and plan for the changes that may be necessitated by ERP, or do not actively participate in the implementation, the implementation has a high likelihood of failure. Top management often tends to delegate the implementation to lower management levels, which can lead to their being out of touch with critical events or lack the understanding of the scope, size, and technical aspects of the project. Top management must view the ERP implementation as a transformation in the way the company does business.

Additionally, the ERP implementation can not be viewed only as an IT project. If it is, it will never realize its full capabilities and it is likely the technology will be deployed in a vacuum, the software will not be aligned with business processes, and staff will resist using it.

Best Practice: Employ a top-down approach in securing organizational commitment. Large-scale initiatives require commitment from top executives. Before an ERP implementation project starts, key management must define clear goals and objectives to achieve their vision for how the company will operate with the new technology in place.

These expectations must be clearly communicated throughout all levels of the organization. Oftentimes, lower level employees do not understand the company’s strategic plans and how their individual roles affect them. Without a clear understanding of why the company is implementing a new system, people will tend to resist the change and find ways of maintaining the status quo. Without commitment from the entire organization, the capabilities of the ERP system will never be fully utilized.

It is imperative to secure buy-in from users of the new system and increase their stake in the success of the program. One of the easiest ways to achieve this is to have those who will use the system most serve as part of the core design team. This helps break down barriers to change by helping them to be more comfortable with the application and workflows.