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Erp – overcoming the fear of change
1. Copyright 2011 Wissam Abdel Baki - This document contains information proprietary to the author. Use or disclosure
without written permission of the author is expressly forbidden.
Definition
Defined by CIO (www.cio.com) “Enterprise resource planning software, or ERP, doesn’t live up to
its acronym. Forget about planning—it doesn’t do much of that—and forget about resource, a
throwaway term. But remember the enterprise part. This is ERP’s true ambition. It attempts to
integrate all departments and functions across a company onto a single computer system that can
serve all those different departments’ particular needs.”
By: Wissam F. Abdel Baki
Date: 14-Dec-2011
ERP – Overcoming the fear of change
When we first started implementing ERP solutions back in 2004, we were so excited about it,
thinking that customers will welcome us, the consultants, on red carpet. To me, the ERP we were
implementing included new functionality, new modules, enhanced look and feel and plenty other
options. Such an integrated solution will replace their Excel Files and paper work, and help them
utilize their time and effort efficiently.
Well, that was what we - the consultants - thought.
On the other side of the table, employees had a totally different perception to solutions,
especially New Ones. They have always been resentful... 75% of the time, to be more precise.
Why?
1- To most of them, a complicated system with a comprehensive list of modules covering all
functions of the business, it is a threat to their being... With systems in place, they will
have to share knowledge with their peers. They will be forced to exercise transparency,
where managers will not request reports anymore; rather they will run their own reports
from their workstations.
2- We learned from experience, that employees fear the transition period and the parallel
run. They will have to do a double job for some time, with continuous reconciliation of
figures, until finally approving the new system.
3- Senior employees, who have been serving their company for years for instance, will be
subject to learning a new language and new terminology. They will be put on test again,
and might pass or fail. They know their job very well with their old tools and sometimes
with tools they customized or encrypted themselves.
4- During the implementation phase, employees spend a considerable amount of time with
consultants for Gap analysis and Requirements gathering. They are requested to prepare
2. Copyright 2011 Wissam Abdel Baki - This document contains information proprietary to the author. Use or disclosure
without written permission of the author is expressly forbidden.
master data and a new chart of accounts. This increases pressure on employees, at least
in the early phases of the transition.
5- Unanswered questions about maintenance and support, future training, mistakes and
error handling and a lot others, increase that feeling of insecurity employee have already
got regarding this transition.
Approach
What a consultant or a firm have to consider at this stage, is that the fears of the employees from
an ERP change are reasonable, and can be moderated.
I have implemented more than 20 ERP projects in the area, for companies of different business
lines; retail, wholesale, real estate, point of sale and many others. From experience, I managed to
practice a way to reduce the amount of “dislike” from employees, and transform it into trust and
cooperation, finally leading to successful projects (Most of which are up and running till today)
Here is what I did, and what consultants should do.
1- Know your product very well. Learn it and practice different scenarios as homework. No
two companies practice the same accounting procedures 100%. Accountants and other
business functions members have always something twisted in how they approach their
daily operations.
2- Be Transparent at all times. Answer all question raised by Top managers, senior officers
and junior employees. This will build more confidence in you and your knowledge, and
concurrently in the system.
3- Stress on the benefits of the new system. At any occasion, drive your efforts to exhibit
benefits. The more the benefits of the product, the more hands will be raised.
4- Consider all ideas. Everyone in the organization is as important, and everyone’s ideas
count.
5- Avoid adding unneeded pressure on employees. When requesting for Master Data, for
instance, do it right from the first time. Request this number of columns in this format.
This will insure delivering the requested information with minimum effort and on time.
6- Clarify the roadmap with Top Management and get the support needed. Help top
management assign resources to work with you on the project. Support is needed at all
times.
7- Send updates on achievements on a daily basis. Keep everyone informed of the progress.
Always thank everyone who did efforts.
3. Copyright 2011 Wissam Abdel Baki - This document contains information proprietary to the author. Use or disclosure
without written permission of the author is expressly forbidden.
8- Divide training sessions by specialty if possible. A homogeneous crowd adds value to the
discussion. Questions asked by one employee most probably concern the whole group.
Be sure to carry out a comprehensive training and cover all areas to be utilized. Submit
documentation tailored to that specific implementation, rather than generic ones.
9- Follow up constantly at the beginning (From the first day of the parallel run) until
employees show confidence in performing their tasks. Be there in at least one period
closing procedure or a year-end procedure.
10- Be constructive and positive. People trust you and cooperate with you more than if you
had an attitude. After all, your character is what shapes your career path, never your
academic qualifications.
Biography
Wissam F. Abdel Baki is a specialized Information Technology Leader with 12 years in the IT
business. Out of which 7 years were spent implementing ERP solutions to companies of different
business lines.
Holding a BS in Computer Science, PMP, CITP, ITIL, and a Microsoft Specialist in Dynamics Great
Plains, Wissam currently owns an IT company which delivers ERP products and services, IT
Consultancy services as well as Web Development and Online-Related Services.