The biggest issue in ERP use is implementation failure. This often comes about as a result of the Twelve Cardinal Sins of ERP Implementation, which are:
- Lack of top management commitment
- Inadequate requirements definition
- Poor ERP package selection
- Inadequate resources
- Resistance to change/lack of buy-in
- Miscalculation of time and effort
- Misfit of application software with business processes
- Unrealistic expectations of benefits and ROI
- Inadequate training and education
- Poor project design and management
- Poor communications
- Ill-advised cost-cutting
There are numerous similarities of this list with the essence of John P. Kotter's book "Leading Change" (http://bit.ly/bRwhJ1). To succeed in implementing any kind of major change in an organization there are several requirements. It's necessary to establish a powerful guiding coalition and to assemble a group with enough power to lead the change effort. A vision of this change must be created and communicated, others must be empowered other to act on this vision so that obstacles can be removed and small victories achieved. These improvements must then be consolidated and new approaches institutionalized.
Too often, change is dictated by executives who have little or no understanding of the processes underlying their business. Without this understanding, there is little chance that a chosen solution will represent an improvement, and in a worst case, it could be a disaster. Regardless of of the outcome, if the people doing the work of the business don't believe in the proposed change, it is destined to fail. The most important part of implementing change is to get the buy-in of the workers and give them the support that they need so that they can succeed. This means resources, training, and rewards for the extra effort required to bring about change successfully.
Adapted from a White Paper by Rockford Consulting
http://bit.ly/aigWub
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