Why did Your ERP Project fail?: Internal resistance

One common type of project failure is ERP project failure. ERP is a software system that integrates and automates business functions. ERP projects are complex, risky and costly. They can fail to implement or deliver. There are different types of ERP project failures. In this article, we will focus on one: Internal resistance

What is internal resistance?

Internal resistance is when the employees or managers are reluctant to adopt the new system or change their ways of working. This means that they do not accept the changesto their roles, tasks or processes. For example:

• The employees or managers may not understand or agree with the need or benefits of the ERP system or the changes it entails.

• The employees or managers may fear or distrust the ERP system or the changes it brings to their jobs, skills or performance.

• The employees or managers may prefer or be attached to their current system or way of working and resist any change.

• The employees or managers may feel excluded or threatened by the ERP system or the changes it brings to their power, status or relationships.

Internal resistance can lead to several problems for the organization and the project. For example:

• The project may face delays, conflicts or rework due to lack of cooperation or collaboration from the employees or managers.

• The project may face quality issues or errors due to lack of compliance or adherence from the employees or managers.

• The project may face scope creep or change requests due to lack of alignment or agreement from the employees or managers.

• The project may face user dissatisfaction or turnover due to lack of engagement or satisfaction from the employees or managers.

Why does internal resistance happen?

Internal resistance can happen due to various reasons. Some of them are:

• Lack of proper communication: The organization may not communicate clearly and effectively with the employees or managers about the ERP system and its impact on their roles, tasks and processes. This may lead to confusion, misunderstanding or misinformation among them.

• Lack of proper involvement: The organization may not involve the employees or managers in the ERP selection and implementation process. This may lead to lack of ownership, commitment or input from them.

• Lack of proper change management: The organization may not manage the change that the ERP system brings to its culture and behavior. This may lead to lack of preparation, education or support for the employees or managers.

How can internal resistance be avoided?

Internal resistance can be avoided by following some best practices. Some of them are:

• Communicate clearly and effectively: The organization should communicate clearly and effectively with the employees or managers about the ERP system and its impact on their roles, tasks and processes. This should include explaining the need, benefits, goals, scope, timeline and risks of the ERP project and addressing their concerns and issues.

• Involve the employees or managers: The organization should involve the employees or managers in the ERP selection and implementation process. This should include soliciting their input, feedback and approval at every stage of the project and acknowledging their contributions and achievements.

• Manage the change: The organization should manage the change that the ERP system brings to its culture and behavior. This should include preparing, educating and supporting the employees or managers for the transition and ensuring their adoption and satisfaction.

By avoiding internal resistance, the organization can increase the chances of a successful ERP project that delivers on time, on budget and on benefits.

Until Next Time…