Successful implementations rely on accepting change
Pretty much every article or book written on ERP implementations discusses the problems of Change Management. Well over 50% of project challenges are attributed to either Change Management or Business Process misalignment. To put a finer point on it, Change management is essential to an ERP implementation because it helps to ensure that the changes being made are understood and accepted by the people who will be using the system. Implementing an ERP system involves significant changes to the way an organization operates and manages its business processes, and these changes can be disruptive and challenging for employees to adjust to. If change management is not properly planned and implemented, it can lead to resistance to the new system, decreased productivity, and ultimately, the failure of the ERP project.
According to Gartner, half of change initiatives fail, and only 34% are a clear success. Effective change management helps to minimize the negative impact of these changes and maximize the benefits of the new system. This includes identifying and addressing the needs and concerns of stakeholders, providing training and support to employees, and communicating regularly with all parties involved to ensure that the transition to the new system is smooth and successful.
Again, these points are well understood. However, we think that the next breakthrough in Change Management is to address the problem head-on with science and research, not hunches. In other words, Organizational Psychology.
Organizational Psychology and ERP
The role of organizational psychology in ERP implementations is to apply scientific knowledge about human behavior in organizations to improve the well-being and effectiveness of individuals and groups during the change process. ERP implementations involve significant changes to the way an organization operates and manages its business processes, and these changes can be disruptive and challenging for employees to adjust to.
Organizational psychology can be used to identify the needs and concerns of stakeholders and to develop strategies for addressing them. This can include providing training and support to employees to help them adapt to the new system, as well as effective communication and engagement with all parties involved to ensure that the transition to the new system is smooth and successful. By taking a psychological approach to change management, organizations can better understand the factors that can impact the success of an ERP implementation and develop strategies to address these challenges.
How to Help Your Employees Accept Change
The primary challenge of any implementation is change. People are not naturally accepting of change. Expectancy Theory, a focus within Organizational Psychology, postulates that people are most fulfilled when they expect to do well in their daily tasks. We’ve often seen this portrayed in popular culture as visualization: if a person visualizes success, then they will achieve it. The field goal kicker is about to kick the game winner, the Little Train That Could, the examples go on and on. Change disrupts employees’ expectations of success. The new technology, tool, process, or boss will always cause anxiety because expectations are changing. Applying this theory to ERP implementations means convincing employees that they should expect to be successful with the new system.
When employee expectations are brought to the forefront, specific barriers to change can be identified. There will always be those in the organization who feel that their skillset is being replaced by the changes implementation imposes. This leads to fear, which leads to uncertainty, which leads to a desire for reestablishing certainty. Employees pursue this need for certainty by finding groups or individuals with the same interests. In this case, the interests take the shape of concerns about change. Before too long, there is an entire team of employees who rise to resist change. This can result in cultural undertones that have a far-reaching impact on how the organization functions. The best planned implementation will likely fail if a culture of resistance is allowed to grow.
These individuals need to be identified early on, and should be incorporated into the implementation as subject matter experts, trained as super users, etc. This changes expectations from threat to success before they can become entrenched against the change. By including key team members early in the implementation project, we've found at OSI that employees become change champions instead of a team fighting against you.
Organizational Change Management Techniques
Successfully implementing new technology or processes requires more than just software or system upgrades—it requires people to adapt. Change management techniques are structured approaches that guide employees and stakeholders through change, minimizing resistance and maximizing adoption.
According to Gallup, 70% of change initiatives fail. Below are some key techniques you can leverage to equip yourself with a sturdy change management plan that will help your employees better react during this major transition.
1. Stakeholder Analysis and Engagement
Before any change is implemented, it’s crucial to understand who will be affected and how. Conducting a stakeholder analysis helps identify individuals and groups who have the most influence over the change’s success. Once identified, organizations can proactively engage stakeholders through regular communication, involvement in decision-making, and targeted support, building early buy-in and reducing resistance.
2. Communication Planning
Clear, consistent, and timely communication is the backbone of any change initiative. Effective communication plans outline the messages, media, and timing of information delivered to employees. This ensures that all team members understand the reasons for change, the benefits it brings, and how it will impact their roles. Transparency reduces uncertainty and fosters trust during periods of transition.
3. Training and Capability Building
Even the most sophisticated ERP will fail if users aren’t prepared to leverage it effectively. Training programs tailored to different roles help employees build the necessary skills and confidence. This can include workshops, e-learning modules, hands-on sessions, and ongoing support resources. Reinforcing training over time ensures knowledge retention and smooth adoption.
In addition to OSI's consulting services, this is another area we can jump into post-project and assist in getting your teams and departments up to speed with the new technology solution. Our team can help provide training materials and resources that will help walk them through everything that will affect their day-to-day operations.
Not only that, but OSI offers an Enterprise Assurance Program that helps your team select the right level of support and managed services for your particular organization. And if you're still not sure of the level of support you need, we can help you identify that as well.
4. Feedback Loops and Iterative Improvement
Change initiatives should not be one-way directives. Establishing feedback mechanisms, such as surveys, focus groups, or suggestion portals, allows employees to voice concerns and provide input. This data can be used to refine training, communication, or rollout strategies, making the change process more responsive and adaptive.
5. Reinforcement and Recognition
Sustainable change requires reinforcement. Recognizing individuals and teams who successfully adopt new practices motivates others and helps normalize the desired behaviors. This can include simply giving recognition to team members, performance incentives, or highlighting success stories across the organization.
6. Monitoring and Metrics
To understand the effectiveness of change efforts, organizations must define KPIs, such as adoption rates, user engagement, and process efficiency improvements. Regular monitoring allows leaders to identify areas of friction and intervene early, making sure the change sticks, delivers measurable value, and is heading in the right direction for future growth.
Results in Effective Organizational Change Management
When organizations apply structured organizational change management techniques, the outcomes extend far beyond simply implementing new technology or processes. Effective change management ensures that changes are not only adopted but sustained, producing measurable benefits across people, processes, and performance. Key results of a successful OCM strategy include:
Higher Adoption Rates
Employees are more likely to embrace new systems, workflows, or policies when they feel informed, trained, and supported. Higher adoption rates reduce the risk of underutilized technology, ensuring the organization gains the full value from its investments.
Reduced Resistance and Increased Engagement
By addressing employee concerns proactively, engaging stakeholders early, and leveraging change champions, organizations can minimize resistance. This fosters a culture of openness and participation, where employees feel empowered to contribute to the change rather than resist it. Don't hinder your growth by not getting your employees' perspectives on new technology updates and process changes. After all, they'll be the ones utilizing these new solutions every day.
Improved Productivity and Efficiency
When employees are confident in using new tools and processes, workflow disruptions are minimized. Effective change management helps teams transition smoothly, leading to faster task completion, reduced errors, and more efficient operations.
Enhanced Employee Satisfaction and Retention
Changes can be stressful if not managed well, but providing clarity, support, and recognition throughout the process can make the biggest difference. Employees who feel guided and valued during change initiatives are more satisfied, engaged, and likely to remain with the organization.
Alignment with Strategic Goals
Change initiatives that help you align people, processes, and technology with the organization’s broader objectives will only garner positive outcomes for the overall project. By ensuring employees understand the why behind the change, organizations create cohesion between day-to-day operations and strategic priorities.
Measurable Business Outcomes
Ultimately, strong change management translates into tangible business results. Organizations see improved ROI on technology investments, streamlined operations, higher quality outputs, and better customer experiences, all because employees are equipped and motivated to operate effectively within the new environment.
