Change Management on Large Multi-location ERP Projects

Abstract

Large manufacturing companies that implement a unique integrated business ERP (Enterprise Resource Planning) system, simultaneously at a large number of geographically distributed production locations within a single legal entity, face a challenge of exceptional complexity. The difficulty is further increased when these locations operated with separate, locally adapted ERP systems, so employees, in addition to having to learn to use a new tool, also have to fundamentally change their way of thinking about business processes, data location and responsibility for results. Relying on the available literature, project experience and two published case studies [1, 2], this paper synthesizes the key principles of effective change management, analyses the psychological impact of ERP implementation on employees and identifies seven critical risk factors that determine the success or failure of such projects. For each risk factor and for the broader framework of change management, practical recommendations are provided, and at the end, an overview of final tips for managing change in this type of project is provided.