The Implementation Challenge 25

This catch-22 is one of the reasons why many companies that implement
ERP never get beyond Class C. Other reasons include:
It’s people-intensive.
ERP is commonly misperceived as a computer system. Not so. It’s a
people system made possible by the computer software and hardware.
It requires top management leadership and participation.
If the goal is truly to run the business better, then the general manager
and staff must be deeply involved because they and they alone
have the real leverage over how the business is to be managed.
Changes made at a lower level in the organization won’t matter much
if it’s business as usual at the top. Bob Stahl says: “I find that priority
comes from a leadership who understands that ERP is tied to
their future success. It becomes part of their defined ‘strategic imperatives.’”
It involves virtually every department within the company.
It’s not enough for just the manufacturing or logistics or materials
departments to be on board. Virtually all departments in the company
must be deeply involved in implementing ERP; those mentioned,
plus marketing, engineering, sales, finance, and human
resources.
It requires people to do their jobs differently.
Most companies implementing ERP must undergo massive behavior
change to be successful. ERP requires a new set of values. Many
things must be done differently, and this kind of transformation is
never easy to achieve.
Many people in general management will assume that a massive
software change such as an ES is sufficient to achieve major results.
In fact, this system simply moves more information faster and
deeper in the company. If the actual work processes don’t change,
then bad information moves more quickly and with dangerous mo-
The Implementation Challenge 25
mentum across the company. ERP provides the work and people
process to make sense out of this rapid flow of data.
Experienced users say implementing ERP is more difficult than
building a new plant, introducing a new product, or entering a whole
new market. Breaking through the catch-22, overcoming the people
problems, making it happen—these are the challenges.
That’s the bad news.
The good news is there’s a way to meet these challenges. There’s no
mystery involved. Implementing ERP successfully can be almost a
sure thing—if it’s done right. Yes, it is a lot of work. However, ERP
has never failed to work, not once, when correctly implemented. It
will work and users will realize enormous benefits.
Doing it right involves two major elements:
1. An aggressive implementation schedule, focused on achieving
maximum benefits in minimum time.
2. The Proven Path. A set of steps that, if followed, will ensure a
successful implementation.