Question

QUESTION 2

You are a Chief Technical Officer (CTO) who is now leading the first phase of implementation of ERP SAP system in your company. The ERP SAP system will bring significant changes to the business processes. Eighty percent of the employees of your company are aged between 40 to 60 years old, with an average of ten years working experiences with the company.

a) Based on your knowledge gained in this ERP course, how would the employees react to the implementation of the new ERP system? Provide THREE (3) reasons to support your answer.

b) Propose FOUR (4) strategies that can help increase employees’ acceptance of the new ERP systems

Answer 1

Ans a ) Employee reactions to change can be grouped into three major stages loosely modeled on Kubler-Ross’s change curve:

• Stage 1: shock and denial
• Stage 2: anger and skepticism
• Stage 3: integration and acceptance

Stage 1: Shock and Denial

The initial reaction to any change is shock. The first question that comes to employees’ minds is why? Employees may find the new idea unacceptable and hope that it never materializes. They may choose to ignore that this change is going to happen and continue to follow the old methods, oblivious to the suggested changes. If not managed properly, there may be a dip in performance and productivity

Stage 2: Anger and Skepticism

As employees begin to realize the reality of having to endure a new system, there may be anger and resistance coupled with a fear of the unknown. There is also a natural reluctance to move out of their comfort zones. Usually, this is manifested through constant putdowns of the new system, trying to prove that the existing system is better and cheaper, and questioning the efficiency and operation of the new system. It is necessary that supervisors patiently resolve all employee queries and spend time making an effort to drive away the underlying anger.

Stage 3: Acceptance and Integration

The final stage is acceptance, where employees are convinced about the new system and how it is going to help them and the organization. At this point they have begun integrating and using the new system.

There likely will still be moments of frustration and problems for employees during their integration into the new system, and technical hitches and questions might continue to arise. Delays in addressing these issues may result in employees being frustrated and losing faith in the new system. Consequently, it’s important to address concerns quickly and provide coaching, support, and reinforcement.

Ans b)

• Explain the need – Gather the company together and discuss exactly how the organization will change for the better as a result of the ERP shift.
• Make it personal - Explain why enthusiasm is the correct reaction and most importantly, discuss how this change will positively affect each and every employee at their level of the business.
• Endorse the project – Just because the reasons that the company needs the change have been explained, that doesn’t mean that stakeholders have conveyed why they themselves find it valuable and support the vision. As the leaders of the company, it’s important that the buy-in starts at the top so that the message is clear and consistent, and the commitment is solid.
• Keep major influencers involved – Keep important members of the organization involved by creating accountability and establishing routine meetings to review project progress and discuss any roadblocks. This can help sustain engagement from start to finish, and keep the project on time, up to standards, and under budget.
• Create a feedback network – Make sure there is an avenue to collect feedback and take any necessary action on such feedback. Keep in mind, simply offering a venue for feedback is not enough. Ensuring that feedback is adequately addressed is equally important. Allocate time to review this feedback and decide upon any actions to be taken. Keeping a log of submissions and the response to each can help the organization sustain accountability and make sure all voices are heard and respected.
• Train employees – A system is only as good as its use, and training employees on the proper way to interact with the new ERP system is vital to ensuring that it is used effectively after implementation. Train employees early on, and allow them ample time to adjust to new processes and functions. This not only helps make sure that the system is used properly, but it also gets employees engaged and confident in their new skills.

• Perform Success Checks Along the Way – Even with all of the right intentions, projects can begin to derail without proper grooming. Check with the entire team routinely throughout the project and ask them the following questions: