Most organizations know that they must optimize business processes in order to fully leverage the benefits of their ERP systems. Yet, some have done the process work and are still dealing with a variety of frustrations. Perhaps staffers’ requested procurements don’t arrive, or managers are still using Excel spreadsheets to forecast expenses. Even worse, perhaps quarterly closing is a perpetual fire drill, or management isn’t getting the insightful forward-looking data they thought they would.
The fact is that ERP-readiness also means taking a hard look at organizational and human factor issues. Those that operate effectively in an ERP environment incorporate Organizational and Skills Assessments as part of the implementation or upgrade. When conducted by experienced consultants in tandem with Business Process Optimization, these assessments identify the potential obstacles to success – and the best approaches for correcting them within a tailor-made Change Management program.
At CherryRoad, we conduct an Organizational Assessment by first gaining a thorough understanding of the current state of the organization or relevant business units, as well as the future capabilities, roles, and tasks the new system will require. From there, we identify the gaps to peak performance and recommend changes.
For example, because ERP systems are based on relational databases, they rely on cross-departmental processes. An Organizational Assessment may uncover that a company with a silo culture needs to adapt reporting structures to open up the cross-departmental communications so critical to ERP success.
Or, for a company implementing an enterprise Financial system, an Organizational Assessment may reveal that the accounting staff has only worked in stand-alone, reactive systems. The new ERP system proactively analyzes data in subsystems, which dictates that the staff understands what’s in those subsystems. This requires a significant change in mindset from bookkeeper to accountant.
Closely related is the Skills Assessment: Do staff members affected by the ERP system currently have the skills required to use the system? For example, a public transportation entity implementing HR self-service capabilities may employ hundreds of excellent bus drivers who don’t happen to be computer literate. Even some employees who work on computers every day may require extensive training to use the ERP software. The Skills Assessment drives the development of efficient training options.
Equally important is the development of analytical skills. Ideally, ERP systems enable the organization to gain operational insights and business intelligence. They absorb transactional functions, thereby freeing managers to instead conduct analyses. A Skills Assessment will determine how the organization can develop the required analytical capabilities on staff to leverage this benefit.
Organizational and Skills Assessments ensure you implement an intelligent and thorough Change Management program. One that helps the organization and its staff members embrace the new technology while minimizing resistance and disruption. If you’d like to learn more, contact us at info@cherryroad.com.