Why people resist change in ERP

Implementations and what to do about it

One of the big lessons is that change has no constituency. People like the status quo. They
like the way it was. When you start changing things, the old good days looks better and
better (Jack Welch).

It is said that change is the only constant in life and someone said I cannot say whether
things will get better if we change; what I can say is they must change if they are to get
better (Georg C. Lichtenberg).

Despite this people still resists change, and some resist it fiercely. If you want to make
enemies try to change something (Woodrow Wilson)

Major organizational changes, like implementing ERP Systems, do not happen without
resistance. One of the major issues you have to deal with in implementing an ERP system is
managing such resistance from various quarters of the organization. Resistance to change is
an insistence that the status quo remains and that there is no need to change it.

It is the role of the Organizational Change Management Team within the project management
set up, to manage these resistance and to make the organization change ready, for the change
initiative to succeed.

In this post, the following have been identified as the causes of resistance to change in ERP
Implementations and how they may be addressed.

Uncertainty about the Future

Lack of sufficient information about the future direction of the organization as it affects
individual staff may be a source of resistance to the change process. People often fear that
under the new dispensation they may be worse off than they were currently. Some of them
even fear losing their jobs. As you know, one of the myth around many organizational
changes is that somehow people will lose their job.

Employees most susceptible to the fear of what the future will bring as a result of the change
are the long serving staff in the organization that may not be easily trainable and people that
currently yield influence in the current set up.

Fear of losing Influence

Some employees across the organization and across all levels have established themselves as
point of reference in current set up. They may be architects of the current processes or
systems in use and thus fear that their influence will disappear with the new change.

Feeling of exclusion from the change process

Some people resist change just because they have not been part of the people tasked with
effecting the change in the organization. They therefore feel excluded in the change process
and hence the resistance. Such staff have opinion of themselves as people to consult and listen
to in the organization. They feel that people consult them for their point of view on things and
therefore, in such an important change as implementing an ERP System, they should have
been involved. People who feel this way can be a major source of risk for the project and a
major headache for the change management team. They are the normal loud type and not
reserved in expressing their opinion.

Lack of required skill necessary for the change

For the employees of the organization, implementing an ERP solution means acquiring new
skills to be able to use the new systems. The fear or apprehension that one does not have what
it takes to learn these new skills may translate into resistance.

Change not properly communicated within the organization

Lack of proper communication of the impending change, the need for it and the benefit to be
derived from it, breeds confusion and uncertainty. When people are not clear about the need
for a particular change they are bound to resist it or at best, will not support it.

Addiction to the old way of doing things

Ordinarily people are more comfortable with what they know and are hesitant trying new
things, lest their incompetence are revealed. People falling under this in ERP Implementations
are the ones not too comfortable with technology. These people do not want the status quo to
be disturbed. They like the old way of doing things. You keep on hearing from them that the
old system could do this or that easier than what you are showing them, thereby questioning
the essence of the change.

Lack of trust
It may be that the organization has had some bad experiences in past change ventures, that the
staff developed a feeling that any new venture will also end in failure. This attitude may at
best cause a lack of enthusiasm about the change initiative or at worst outright resistance.

Strategies to manage resistance to change

Getting the support and commitment of the senior management of the organization

The support and commitment of the senior management of the organization to the change
process is very important. Without this, the change is dead on arrival. It is important that most
of the communications regarding the change come directly from the top management for
maximum impact. Also the process of making the needed process, organizational and role
changes can only happen timely, with the support of top management.

Getting the support of opinion leaders in the organization

Some people are listened to in the organization, they have a real following and their opinion
on issues matters a great deal. Securing the support of such people make the job of the change
management team, in selling the change, a lot easier.

Provide Training to all affected employees

Employees should be comforted that they will receive the required training and support
necessary to use the new system. There should be proper training needs analysis, based on the
determination of the process, organizational and role changes. The result of this should go
into a well formulated training strategy. The training should be conducted at the appropriate
time using scenarios relevant to the organization and real examples from the organization.
With adequate training, the employees can properly adjust to the change introduced by the
ERP Systems, thereby making them receptive to the change more easily.

Develop a proper communication strategy

Communication includes both the message and the channels of delivering the message. The
right message precisely explaining the change and the need and benefit of the change should
be formulated. Equally important is the channel to be used in conveying the message. If
necessary, multiple channels with maximum impact, taking into consideration the culture of
the organization, should be used.

It is important that the message is delivered by a person of authority. Here, the change
management team may seek the help of top management, preferably the President/CEO of the
organization to deliver the messages
Developing a strong case for the change, and selling it

It is assumed that before implementing any ERP Solution, a proper business case has been
developed. The case for the change may be strengthen further as you go through the business
analysis stage and people begin to see real gap between what is on the ground currently and
where the organization wants to go. However, unless the need for the change is properly
communicated within the organization, there will be resistance to the change being
implemented.

Identifying organizational, process, and role changes and communicating it within the
organization

Some of the outcomes of aligning the organization to the best practices introduced by the ERP
implementation is that corresponding changes has to happen in the form of organizational
structures, processes and procedures, and role changes. New organizational structures may be
introduced, some existing ones may become redundant, or shifted to other areas, processes re-
engineered, procedures re-written and roles redefined.

All these changes have to be understood by the employees, and this is a key function of the
change management team. The change management team will have to communicate all these
changes clearly and at the appropriate time. This will allay employee fears and avoid
uncertainty and confusion.

Make a clear statement, which should be reflected in actions, that the decision to change
has been taken and will not be reversed

People trying to resist change should be given less opportunities to do so. They should be
made to understand that the decision has been made to chart a new direction for the
organization, and that decision is irreversible. Therefore, it will be in their interest to move
along with the change. They should be reassured that they will not be alone in the journey and
will be properly trained to be ready for the change. It is very important that people know from
the onset that they cannot go back to the status quo to prevent them from hanging on to the
hope that, may be the change will be reversed.

The Change Management Team should work closely with the implementation teams

As the implementation gets started, the change management team should be side by side with
the implementation team in requirement gathering sessions with the view to determining very
early in the journey the likely process changes, organizational changes, and roles changes, and
communicate this clearly in the organization.
Early identification of process, organizational, and role changes in turn help in the process of
defining training needs and also comforting employees that in spite of the change they have
an important role to play in the new organization.

The Change Management Team should work closely with the business

The change management team should, throughout the implementation of the change process,
listen to concerns of the employees of the organization directly impacted by the change and
try to provide comfort and allay fears. The need for change and the expected future
outcomes should be clearly explained from the onset. Proper selling of the change initiative to
the larger organization, providing needed information about the need, and benefit of the
change help in reducing resistance to the change and provide you with ready partners in the
change process.

Involve the business process owners throughout the implementation

The business process owners are the ones that are eventually going to own the system, and the
employees under them are the ones that will use it. Again your implementation is intended to
address requirements of Business or user Departments in the organization that these business
process owners are heading. It is important that they are involved throughout the
implementation. This understanding and cooperation will eliminate or reduce any potential
resistance when the system is eventually delivered.

Engage the people that fear the loss of influence if the status quo changes

The change management team has to try and engage people that feel they have a lot to lose if
the status quo changes, and involve them in the change process. These may be people, who
for example, are the architect of the current system you are trying to retire. They may be
selected as Subject Matter Experts in the analysis of the As Is situation and also allow them
to participate in discussion of the To Be. It must be noted however, that using such people
is not without risks, as they have the tendency to draw people back to the past because of their
attachment to the old ways.

Involve Highly Opinionated Employees in the implementation

There are people in the organization that have opinion about anything and everything and they
like to be heard expressing it. If they are not involved in any initiative, they most certainly
will talk negatively about it. It may be a good idea to involve such opinionated people in one
role or another, in the implementation. These people will always have ideas and you can, at
the same time, satisfy that inner feeling of self-importance they have of themselves. Such
people can also serve as good change agents for the business area they currently work.
Make use of Change Agents

It is important to select employees from all parts of the organization impacted by the ERP
implementation, to serve as change agents helping in driving the change initiative. These
should be people highly respected in the business area they are employed in, and should be
part of the representations of the Business in the implementation. You should help in
systematically building their capacity in the ERP Module they are helping in implementing, to
make their job easy as change agents.

Manage the expectations

From the onset, it should be clear to all stakeholders what is and what is not, part of the scope
of the implementation. This prevents conflicts and the subsequent differences in attitude that
can make the change manage.

Now what do you think? I would like to here your thoughts on the subject. You may kindly
leave a comment.