ERP Study 2025: Successful Change Management in ERP Renewal Projects

^{Picture 1: The industries of the participating companies and the job titles of the interviewees.}  

The Importance and Challenges of Engaging People in ERP Renewal Projects 

The results of the interviews indicate that companies undergoing an ERP reform for the second time have experienced “tournament fatigue,” underscoring the importance of achieving success on the first attempt. In 60% of cases, the commitment of personnel to ERP projects was fully successful, while in 40% it was partially successful. This highlights the critical role of clear communication, education, and engagement in enhancing commitment. Staff resistance is common in ERP renewal projects, emphasizing the necessity of effective change management. 

In some companies, staff turnover was observed within the project team and among business process owners, which can impact the continuity and success of the project. It is crucial to ensure that the project team possesses sufficient expertise and that process owners are committed and persistent. Despite the resistance, some successful elements were also identified. Companies should analyse these successful elements and incorporate them into future projects. Based on these conclusions, companies can improve the planning and execution of their ERP renewal projects, thereby increasing the likelihood of project success and reducing the need for unnecessary reforms. 

The Most Important Capabilities 

For a successful program or project leader, the most important skills were identified to be people management, communication, understanding the company’s internal culture and business, as well as decision-making and time management. This underscores that success in ERP projects requires strong leadership and the ability to communicate effectively with various stakeholders. Understanding a company’s culture and business helps leaders make decisions that align with the organization’s values and goals. Time management is also critical, as ERP projects are often complex, and schedules are tight. 

The next most important capabilities involve ensuring organizational efficiency during the project. This means that project managers must maintain efficiency and ensure that all parties are working in a coordinated manner and in line with goals. Strategic planning and program vision, technical capabilities and industry or process expertise, as well as supplier management and control, were considered the least important. This suggests that while technical know-how and strategic vision are important, they are not decisive factors in the success of an ERP project compared to people management and operational efficiency. 

Challenges 

The most difficult aspects of the ERP renewal program and implementation were introducing and establishing new ways of working. The identification and development of resource capabilities within the project organization were most often conducted on an ad hoc basis, suggesting that a more systematic approach could enhance project management and performance. 60% of respondents did not use a structured approach to resource management, while 40% relied primarily on the project manager’s insights. This highlights the need to develop and implement clear and structured processes for resource management to ensure efficient project progression by anticipating potential challenges. 

20% of respondents indicated that a framework exists but is not used systematically. This suggests that while some organizations have structures and processes in place, their application is not always consistent. Resource capabilities should be considered from a diversity perspective to ensure project success. This means that project teams should be diverse and include a variety of skills and perspectives, which can enhance problem-solving abilities and foster innovation.

Roles and Responsibilities in Change Management 

The implementation of change management activities in the ERP project was primarily conducted by the PMO, which then handed over these activities to the line organization. This indicates that the responsibility for change management is often centralized within the PMO, potentially leading to challenges if the line organization is not fully committed or prepared to assume these responsibilities. 40% of respondents had appointed individual change management roles, and the PMO engaged in open discussions with leaders and the project team. This approach can enhance the effectiveness of change management by facilitating continuous dialogue and a better understanding of the project’s progress, needs, and challenges. 

20% of respondents utilized external change management consultants, while another 20% had not considered change management activities or roles within the project. None of the companies that participated in the study had dedicated change management units or teams at their disposal. 

Conclusion 

The adaptability requirement within an ERP solution extends beyond the technical aspects of the ERP system. It includes the ability of the organization to respond to changes in the complex business environment, market conditions, and regulatory requirements. This requires a proactive approach to change management throughout the renewal program and beyond. The role of leadership in driving continuous improvement and adaptability is critical. Leaders must encourage a culture where proactiveness and flexibility are valued. This involves not only setting the vision but also providing the necessary resources and support to achieve it. 

In conclusion, the success of an ERP implementation project is not solely determined by the initial deployment but by the organization's ability to continuously improve and adapt. By embedding this into the organizational culture, businesses renew ERP systems successfully and ensure long-term success. 

---

Contact our team for more information >>