Introduction

Enterprise Resource Planning (ERP) implementations are complex undertakings that often face challenges beyond technical readiness. While organisations meticulously plan and execute technical aspects, they frequently overlook the critical human element, which can significantly impact the success of a cutover. A common pitfall is the lack of sufficient preparation for the human side of the change, leaving a gap in the overall readiness strategy.

Traditional pillars of change readiness 

Change readiness involves a  comprehensive approach that considers not only the technical aspects but also the human factors that can significantly impact the cutover process. It encompasses several key pillars, which include Business Readiness, Program Readiness, Business-As-Usual (BAU) Readiness, and Hypercare and Support.

Each of these pillars focuses on a core area of change management within the business during the ERP implementation, including business processes, stakeholder engagement, project management, resource allocation, maintaining BAU operations, and post-implementation support.

People readiness: The missing pillar

While these pillars form the foundation of a successful cutover, a critical element that is often not sufficiently considered is people readiness. The human factor plays a pivotal role in the success of any ERP implementation, and user adoption, resistance to change, lack of training, and communication breakdowns can derail even the most well-planned cutover.

This gap is caused by the separation of people readiness planning from the rest of the implementation pillars. Traditionally, people readiness during change would be managed by Human Resources (HR) and, while they do have a role to play in the process, their approach often does not  align with the rapid pace and specific needs of change management required in an ERP cutover.

Leader-led approach to people readiness

To address this gap, organisations should establish a dedicated change readiness workstream that is led by a senior executive. This leader-led workstream should be responsible for developing a comprehensive change management strategy that outlines the specific actions needed to prepare employees for the change, including communication plans, training programs, and support mechanisms. Additionally, the workstream should build a strong change management team consisting of individuals with experience in change management, HR, and business operations.

Conclusion

By prioritising people readiness at a leadership level, and establishing a robust change management workstream, organisations can significantly improve the chances of a successful ERP cutover. This approach not only minimises disruptions but also maximises the benefits of the new system by fostering user adoption and minimising resistance to change.