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How could resistance to change be reduced in an ERP implementation project?

Andersson, Christoffer LU and Gustavsson, Simon LU (2014) MTT820 20141
Engineering Logistics
Abstract
Background: An Enterprise Resource Planning, ERP, system is an important part of a company and can create competitive advantages. Hence, the reasons for implementing an ERP system are several. However, the comprehensive nature of ERP systems results in complex implementation projects.

Problem: A large proportion of ERP implementations fail. Several different Critical Success Factors, CSFs, for ERP projects have been identified in previous research and softer aspects are some of the more important factors. Change management is a common topic among those softer factors. Within change management, resistance to change is a common topic but not a well researched
one, which is why this Thesis has focused on this area.

Purpose and... (More)
Background: An Enterprise Resource Planning, ERP, system is an important part of a company and can create competitive advantages. Hence, the reasons for implementing an ERP system are several. However, the comprehensive nature of ERP systems results in complex implementation projects.

Problem: A large proportion of ERP implementations fail. Several different Critical Success Factors, CSFs, for ERP projects have been identified in previous research and softer aspects are some of the more important factors. Change management is a common topic among those softer factors. Within change management, resistance to change is a common topic but not a well researched
one, which is why this Thesis has focused on this area.

Purpose and objectives: The main purpose of this Thesis is to contribute to a better understanding of the challenge of resistance to change in ERP implementation projects. This will be done through the development of a model on how resistance to change can be reduced in an ERP project.

Research question: How could resistance to change be reduced in an ERP implementation project?

Method: The main methods used in this report are a literature review and an interview study. An extensive search for articles and literature regarding ERP implementations, change management and resistance to change has been conducted. The material has been scrutinized to culminate into a solid theory base. Interviews have been conducted with project managers, project group
members, process owners, end users, consultants and project sponsors of ERP projects. A qualitative approach has been used in this Thesis, which has enabled deeper insights in the subject to be gained. However, since the approach is qualitative, the findings in this report are not statistically proven and need to be used accordingly.

Conclusions: Ten tools for reducing resistance to change have been identified in this research, these are; top management support, communication, training and education, involvement, encourage official and unofficial leaders, vision, milestones and targets, adjust expectations, management support and free up resources. Each of the tools is explained in detail in this report. These ten tools make up a proactive model on how to reduce resistance to change during different phases of an ERP project and at different levels in the organization. Based on the
interview study, a second model on how to reduce resistance to change was developed. Since several of the interviewed companies lacked a proactive approach to resistance to change, this model takes a reactive approach. This model takes the starting point in the individual’s reasons for resistance to change, which are summarized in two reasons; fear for the system and the
change process and perceived net outcome not positive. Appropriate tools to use to reduce resistance to change for each of the two main reasons have been identified among the ten tools presented above. (Less)
Please use this url to cite or link to this publication:
author
Andersson, Christoffer LU and Gustavsson, Simon LU
supervisor
organization
course
MTT820 20141
year
type
M1 - University Diploma
subject
keywords
Enterprise Resource Planning System, ERP, ERP implementation, Change Management, User resistance, Resistance to change
report number
5762
language
English
id
4690574
date added to LUP
2014-09-30 15:02:10
date last changed
2014-09-30 15:02:10
@misc{4690574,
  abstract     = {{Background: An Enterprise Resource Planning, ERP, system is an important part of a company and can create competitive advantages. Hence, the reasons for implementing an ERP system are several. However, the comprehensive nature of ERP systems results in complex implementation projects.

Problem: A large proportion of ERP implementations fail. Several different Critical Success Factors, CSFs, for ERP projects have been identified in previous research and softer aspects are some of the more important factors. Change management is a common topic among those softer factors. Within change management, resistance to change is a common topic but not a well researched
one, which is why this Thesis has focused on this area.

Purpose and objectives: The main purpose of this Thesis is to contribute to a better understanding of the challenge of resistance to change in ERP implementation projects. This will be done through the development of a model on how resistance to change can be reduced in an ERP project.

Research question: How could resistance to change be reduced in an ERP implementation project?

Method: The main methods used in this report are a literature review and an interview study. An extensive search for articles and literature regarding ERP implementations, change management and resistance to change has been conducted. The material has been scrutinized to culminate into a solid theory base. Interviews have been conducted with project managers, project group
members, process owners, end users, consultants and project sponsors of ERP projects. A qualitative approach has been used in this Thesis, which has enabled deeper insights in the subject to be gained. However, since the approach is qualitative, the findings in this report are not statistically proven and need to be used accordingly.

Conclusions: Ten tools for reducing resistance to change have been identified in this research, these are; top management support, communication, training and education, involvement, encourage official and unofficial leaders, vision, milestones and targets, adjust expectations, management support and free up resources. Each of the tools is explained in detail in this report. These ten tools make up a proactive model on how to reduce resistance to change during different phases of an ERP project and at different levels in the organization. Based on the
interview study, a second model on how to reduce resistance to change was developed. Since several of the interviewed companies lacked a proactive approach to resistance to change, this model takes a reactive approach. This model takes the starting point in the individual’s reasons for resistance to change, which are summarized in two reasons; fear for the system and the
change process and perceived net outcome not positive. Appropriate tools to use to reduce resistance to change for each of the two main reasons have been identified among the ten tools presented above.}},
  author       = {{Andersson, Christoffer and Gustavsson, Simon}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{How could resistance to change be reduced in an ERP implementation project?}},
  year         = {{2014}},
}