Take the necessary steps and dedicate resources to review processes and think more broadly about specific steps and functions before the purchase of a new ERP system.

We received a call this week from another frustrated CEO who is struggling with a system implementation. What we hear frequently from executives is the following: “It took more time and more money than I ever imagined!”. And, worse, sometimes we hear that customers are being lost or are in danger of slipping away. Enough said as we can’t imagine anything worse!

Over the years, we have helped several clients with these types of situations. We are not experts in any particular software (although we know most of the popular ones) yet we are able to help clients with these issues. Little has to do with being an expert in the particular system. Instead, based on our experience with these types of projects, several of the pitfalls to avoid include:

  1. Lack of process understanding – just understanding system steps is not enough. What if those system steps don’t add up with the daily processes? What if we know all the system steps but have no idea how to perform our job function? This is one of the most common causes of mass frustration and ERP system issues.
  2. Thinking in a silo – almost everything “works” if you are in a silo. If you are thinking about what you need the system to do and not aware of impacts on anyone else, it can appear that the system is functioning just fine when it isn’t. For example, if you enter production and are able to move the inventory to the next step in the production process, all seems good. However, we’ve seen that two steps further in the process, the last production step cannot be performed or the item cannot be shipped if certain fields were not checked or steps followed. Unfortunately it creates havoc later on, and it might not be caught until it is too late. Unscrambling this mess can be tricky.
  3. Lack of education – notice I did NOT say lack of training. 99% of my clients start by telling me the issue is a lack of training. Although additional training might be required, it is rarely the issue. Instead the lack of education can be a problem. Education includes training on specific steps and functions but it is a broader topic. Do you understand WHY you are performing these steps and what they mean?

Upgrading or implementing a new system can be a significant undertaking that will greatly impact your business and your resources – in a positive or a negative way. It is your choice. Don’t underestimate the importance and complexity of this process. Dedicate the appropriate resources and focus to the undertaking, and success will follow.