ERP Leadership: How Leaders Guide ERP Transformation
Putting in new digital systems is hard; putting in a new ERP is even harder. ERPs are one of the vital organs of running an efficient and effective business, so ripping that out and changing it can be scary. This is is why ERP leadership is critical.
Strong ERP leadership throughout the lifecycle of an ERP implementation is critical to ensure people working on the programme remain committed and focused, but actually, the style of leaders needs to adapt and evolve in tune with the lifecycle of the implementation. Leaders need to be aware of what their people are likely to face, and when, so they can stay ahead of it.
Deciding you are going to change your ERP
This period is likely to see a lot of reflection from your people in terms of their pain points and frustrations in their current roles. For some, this will be exciting; for others, the status quo is a safe place. Recognising both is important.
Knowing you will have different people in different places is important, and starting to build a vision of the future, and what the benefits of new ways of working are, is helpful in motivating people.
ERP Leadership – top tip: Adopting a visionary style of leadership is important here. Creating a compelling vision of the future will help guide your people and inspire them to work towards it as they focus on what opportunities a new way of working could create.
My reflection is that involving people in the development of a vision also goes a long way in terms of people feeling like they have some control over where the organisation will go. This will be important later down the line. Things could get tough, so when people have been involved in setting a direction, it’s much easier for them to be resilient when it’s needed.
Procuring your ERP solution
This is an exciting time for your people. They start to see what options are out there and what new ways of working could be. People should be given the freedom to operate within a framework. What I mean by this is there’s no point showing someone what a £5m product can do if there’s not the budget for it.
If you’re employing consultants, they will be doing most of the heavy lifting. Your people will get to see a taster of potential solutions and start to think about what this might mean for them.
ERP Leadership – top tip: Taking a participative approach to leadership can be really powerful at this stage. Involving people in decision-making will naturally give them a stronger feeling of ownership in future stages of development. Procurement approaches also naturally lend themselves to this way of working, where lots of different parts of the business can input and score solutions and how well it would work for them.
Designing your solution
Again, this is an exciting time, your staff get to shape the solution that has been procured. Some of the foundations previously laid here will be tested though, and coming back to vision and what you want to achieve is paramount. While discovery sessions can be exciting for staff, it’s also the first time they really get into the detail of how a new solution will work end to end.
As most solutions now are evergreen, the more customisation an organisation creates, the larger the technical debt it will create longer term. Reinforcing the guard rails necessary to deliver the benefits you considered at the start is crucial.
ERP Leadership – top tip: What style you develop here will depend on what your organisation’s culture truly is. If you’ve been able to lay the foundations effectively to this point, you will be able to continue to be participative or visionary in your style. But you’ll need to police yourself.
My reflection is that there is no point investing heavily in technology if you’re just going to recreate what you do now, but with a white elephant. If people have wholly bought into the vision, they will be with you in terms of new ways of working, but some may want to revert. You may need to be more directive here to ensure what is designed meets the critical success factors you designed at the start, which more often than not will focus on automation, autonomy and ownership.
Testing your ERP solution
Now it starts to get harder. Your team will be under pressure to test, and probably be responsible for doing things they’ve not done before. They might also be tired. It can take a long time from deciding you want to change your technology to get to this point. Importantly, at the same time, the pace will pick up, and lots of people will be asking them for things as you also prepare and shape training.
Vision remains important, but so does doing lots of engagement to remind people of the benefits. Checking in on how they are feeling, and thinking about what incentivises your staff (both personally and as a group) will help too.
ERP Leadership – top tip: It might feel counterintuitive, but you may need to adopt a more pace-setting style here. The period for testing doesn’t have to be too long, but it’s important that high standards are set and that quality outcomes are delivered.
ERP Leadership – top tip: Pace-setting is important here, but also perhaps think about who tests your solution. Yes, those involved in the project from the start will naturally want to be involved, but bringing in others from the business here will help reset motivation for everyone.
Getting ready for ERP go-live
People will probably be tired by now, but they will need to keep going. Let’s be honest: some people might have found it too much or decided the new ways of working are not for them. Obviously, this isn’t ideal, but recognising that people might leave is important; otherwise, you won’t be prepared for when it happens. And it often happens at the most critical of times.
Again, coming back to why is really important, but so is context. Reminding people that going live is just the start is key. It’s like learning to drive… you only really learn what to do once you’ve passed your test and you’re in the car by yourself.
Leadership – top tip: You might need to be more directive at this point, even if it’s only for a short time. Some people will be really excited, but others will be nervous. Getting the programme over the line so that people can start using the new solution in business as usual is imperative. It’s the only way performance can get to where you’ll want it to be.
Why I wrote this for leaders in ERP
To show leaders that you’ll need to display different styles of leadership throughout complex transformations. At times you need to be visionary, other times participative, but at times you will need to be directive.
9FT are great at delivering complex change. We also understand the pressures it puts on an organisation and are committed to supporting your organisation at many levels through delivery. I’d be happy to chat to anyone considering or going through an ERP transformation that would value our insight. Simply get in touch!
