Change Management and Enterprise Resource

Change Management and Enterprise Resource Planning (ERP) Systems

The change management initiatives involved in implementing a new Enterprise Resource Planning (ERP) system are multitudinous and complex, requiring the optimal selection of management framework, leadership direction and organizational structure. In short, for change management strategies on ERP projects to be successful there needs to be a significant level of orchestration at the people, process and information technologies (it) level of any organization

(Aladwani, 2001). The Images Concept as studied in class and in the text is directly relevant to ERP system implementation strategies as each of the six management and leadership styles as defined by the matrix of Images of Change Outcomes by Images of Managing illustrate the full spectrum of styles used in organizations attempting to replace or upgrade their existing ERP systems. Of these six images of managing, the majority of studies indicate that transformational leaders are by far the most effective, or the Coach style in the context of the matrix (Carton, Adam, Sammon, 2008). Given the depth and breadth of complexity inherent in ERP implementations, transformational leadership is critically important, as employees must see themselves and their roles in the broader vision of change (Ash, Burn, 2003)

Application Analysis

Change management initiatives surrounding ERP system planning, implementation and continual refinement are highly dependent on ensuring the new system aligns with the specific business strategies and needs of the enterprise. When existing ERP systems are either enhanced or replaced, there is significant anxiety, fear and resistance to change as these enterprise-class information platforms deliver knowledge that accentuates people's status (Carton, Adam, Sammon, 2008). Changing these systems will often lead to initial resistance and a tendency to push back on legacy process, procedures and applications. Change management strategies often begin with a comprehensive overview of what the overriding objectives are of the implementation, what the specific system functions are, ands how each employee involved in the implementation will have a voice in how the end system is designed (Kemp, Low, 2008). Above all else, senior management must show belief in and a strong commitment to the change as well for it to succeed (Aladwani, 2001). Best practices in this area are achieved when companies rely on transformational or Coach-based leadership relative to transactional or authoritarian-based means

(Ash, Burn, 2003). The greater the belief those most affected by the ERP implementation see the new system as a compliment to what they are doing, the lower the resistance to change. Senior management must take on a leadership role for this to happen however.