Change Management: Managing Change Properly Can Prevent ERP Implementation Failure

05 Feb 2024 03:38 PM By ess ron

The Real Reason People Won’t Change: it’s a psychological term called a “competing commitment,” and until managers understand the ways to overcome it, they can’t do anything about change-resistant employees. -The Harvard Review, by Robert Kegan.,” and until managers understand the ways to overcome it, they can’t do anything about change-resistant employees. -The Harvard Review, by Robert Kegan.

Many times, we get in our own way without even realizing it. We have these competing commitments that hold us back and make it seem like we're resisting change. But really, it's just our own way of protecting ourselves from the unknown.


ERP systems are complex, integrated software solutions that have a significant impact on an organization's processes, workflows, and people. When organizations implement ERP systems without effectively managing the changes they bring, it can lead to various problems; like: lost time, expected benefits not being realized, and different levels of project failure.


Some of the leading causes include:

Resistance to Change

Employees may be hesitant to accept changes in their daily work routines, which can negatively impact the adoption and utilization of the ERP system. This resistance can stem from a fear of losing their jobs, lack of familiarity with new processes and technology, or not being involved in decision-making.

Inadequate Training and Project Leadership

Employees may be hesitant to accept changes in their daily work routines, which can negatively impact the adoption and utilization of the ERP system. This resistance can stem from a fear of losing their jobs, lack of familiarity with new processes and technology, or not being involved in decision-making.

Poor Communication

During an ERP implementation, effective communication is essential, especially about the changes, the reasons behind them, and the expected benefits. Failure to do so can result in confusion and distrust.

Poor Communication

Again to reduce initial ERP budgets, the scope can be initially reduced. However, when employees see those cool features not being implemented in phase 1, Scope starts to Creep. Uncontrolled changes to the project scope can lead to budget and timeline overruns, which can occur when there is no clear change management process in place to evaluate and approve changes to the ERP implementation project.

Unrealistic Expectations

If an organization has unrealistic expectations regarding the capabilities of the ERP system or the timeline for realizing benefits, it can lead to dissatisfaction and disappointment when those expectations are not met.


To mitigate these issues and increase the chances of a successful ERP implementation, organizations should invest in change management strategies. This includes following a comprehensive change management plan, investing in sufficient training, addressing employee concerns, communicating effectively, and maintaining strong project governance. By focusing on managing change alongside the technical aspects of the ERP implementation, organizations can improve the likelihood of a successful outcome.

Author: Andy Pratico