There are few projects that a company can undertake that have as much potential for improving operations as implementing a new ERP system. At the same time, ERP systems are so integral to operations that change can be disruptive and overwhelming if it’s not managed properly. To ensure that your ERP system goes in without a hitch, follow this plan.
Data cleansing
If it isn’t part of your normal routine, start working on data cleansing as soon as you decide to start the search for a new ERP system. Eliminating bad data will make the implementation go smoother since you won’t have to investigate the errors and anomalies bad data can cause.
Document existing and proposed processes
You have probably already documented your existing processes if you’re in a regulated industry or ISO certified. If not, start the process now. Your documentation doesn’t have to be as rigorous as it would be for certification or compliance, but you will want to eliminate any non-value added steps that currently exist and ensure that your new processes cover all the necessary bases. Resist the temptation to customize the new system to match the old by requiring people to prove why the new processes won’t work as part of the change request.
Don’t skimp on training
One of the biggest causes of implementation issues and delays is lack of understanding of the new processes and procedures. Many companies hope employees will just know how to do their jobs using a new system, but that is unlikely to be the case. In addition, training helps to alleviate fear of change and removes resistance to the new system and process changes.
Dedicate the right resources
It’s tempting to assume that lay people can add implementation tasks on top of their regular work, but that isn’t realistic in most cases. Select smart and experienced people to manage the implementation, and allow them enough time to devote to the implementation project. For key resources, the implementation may be a full-time job, but your company will benefit in the long run with a smoother implementation and more effective business processes.
Manage the project to both schedule and budget
Treat the implementation as you would a major development or customer project. Whether you use a consultant from your ERP vendor or an in-house project manager, you must have someone accountable for overall project management. Assign resources and budgets to important tasks and hold people accountable for meeting their milestones and staying within budget. Nothing ruins the enthusiasm for a new system like continued delays in the “Go Live” date, so managing the project in a way that prevents unpleasant surprises will pay off.
Utilize workflow
Create visibility for project tasks and ensure adherence to schedule by setting up workflows for key events. Many of the implementation project steps require input from multiple people or teams, so workflow helps ensure communication. Workflow also provides visibility to management that the project is staying on schedule.
Run a conference room pilot
A conference room pilot is invaluable for managing change. You may want to start with one or more small test runs and then progress to a full-blown pilot with people from all departments working together. This builds confidence in the system and helps to uncover any previously unidentified process glitches.
Prepare for printing and reports
If you print paper invoices, POs or other business documents on forms, make sure you allow plenty of time to design and test them out. Identify current key management reports and their equivalents in the new system. Socialize the new formats so people are familiar with them before they go live.
Every project holds a few surprises, but follow these steps and you will minimize the number of unexpected events as well as the impact of those that do occur.
