Presentation on theme: "ERP Systems and Change Management"— Presentation transcript:
1 ERP Systems and Change Management October 27, 2014
2 Objectives and Welcome What’s In It For You (WIIFM)? Recognize characteristics of ERP systems and why organizations want themUnderstand project failure rate and success factorsDistinguish between ERP stakeholder groupsDescribe Human Resource challenges associated with ERPsRealize what technical system implementations will look like in the next five years
3 Putting It All Together Think about everything you’ve learned so far … and apply it! OrganizationalStrategy andAlignmentPlanned vs.Unplanned ChangeChampions, ChangeAgents andStakeholdersCM TalentManagementProjectManagementHR andOrganizationPerformanceMetrics
4 E R P nterprise esource lanning ERP Primer Why organizations want them Why organizations hate them
5 DiscussionWhy do you thinkthe ERPsin your readingsfor todayREALLY failed?
6 Project Failure Rate So, how common is failure … really?! IBM 40% of projects meet budget, schedule and quality goalsIBM50% of IT projects with budgets of> $15M run45% over budget7% behind schedule, and deliver56% less functionality than predictedAt least 50% of the time you have to spend $59M to get $15M in benefitsMcKinsey70% of change initiatives failJohn Kotter
7 What Constitutes A Failure? ERP implementations that were labeled a failure may have … Not realized the promised ROISignificantly extended the implementation scheduleRun significantly over budgetSlowed productivity to a crawl paceStopped productionMade it impossible to deliver orders to customers
8 Reasons for ERP Failures Twelve major reasons why ERPs fail* … Lack of Top Management CommitmentInadequate Requirements DefinitionPoor ERP Package SelectionInadequate ResourcesResistance to Change/ Lack of Buy-InMiscalculation of Time and EffortMisfit of Application Software with Business ProcessesUnrealistic Expectation of Benefits and ROIInadequate Training and EducationPoor Project Design and ManagementPoor CommunicationsIll-Advised Cost Cutting*According to Softpanorama
9 Success Factors Conner Heath and Heath Prosci Larkin and Larkin Kotter What are the critical success factors for implementing change? Successful ChangeKotterProsciConnerHeath and HeathLarkin and Larkin
10 Success FactorsSuccessful ChangeProsciTop seven contributors to a successful change initiative include…Active and visible executive sponsorshipStructured change management approachDedicated change management resources and fundingFrequent and open communication about the changeEmployee engagement and participationEngagement and integration with project managementEngagement with and support from middle managementOf projects surveyed that had an excellent Change Management Program ...72% were on or ahead of schedule81% were on or under budget96% met or exceeded project goals*Prosci® 2014 Benchmarking ReportKotterSense of Urgency - What is the Burning PlatformProsciAccording to the Prosci® 2012 Benchmarking Report, the top six contributors to a successful change initiative include:Active and visible executive sponsorship (same for last 7 surveys - 14 years!)Structured change management approachDedicated change management resources and fundingFrequent and open communication about the changeEmployee engagement and participationEngagement and integration with project managementEngagement with and support from middle management
11 ERP Roles Many groups have an interest in an ERP implementation … ERP Finance/ProcurementInformationTechnologyERPProject TeamHumanResourcesImpactedBusinessUnitsExternal Stakeholders
13 HR and ERP - Parallel Universes ERPs benefit from having a partner relationship with HR …ERP Project StartRecruit talentNegotiate hiring agreementsAssist with org chart designSupport matrixed teamDuring ERPProjectDesign and implement rewards and incentivesManage relationship between ERP Project and collective bargaining unit(s)Support job description and classification changesAssist with LMS integrationPost ERPProjectManage/ support ongoing ERP trainingCollaborate with business units for repatriation of project resources
14 What do you think is the biggest challenge HR faces during an DiscussionWhat do you think is the biggest challenge HR faces during anERP implementation?
15 Technology Trends Five years from now … An ERP for every company? ”… is it practical to get to a single instance across all functions of a very large, global enterprise? No. That's not a realistic goal any more.We're living in a world where multiple systems have to be networked together, have to communicate openly with each other and need to have sophisticated enough infrastructures on top so that the business can manage it."The "more evolved" thinking … Companies can achieve consistencies and efficiencies in their business processes without having to use one singular system that manages the entire landscape.”Simplification / effective user interfaceCloud ERPSoftware as a Service (SaaS)EPIC / eMedical RecordOpen SourceSocial MediaGamificationPhilip Say, Vice President for SAP Business Suite
16 What else to you want to know? DiscussionWhat else to you want to know?
17 For Further Exploration Prosci® -Kotter’s Eight Step Process for Leading ChangeConner Partners -Additional ERP Disasters Information -Project Failure Statistics and Causes -Future of ERPs -