Professional Documents
Culture Documents
Introduction
The organization has grown significantly over the last 10 years via a
strong acquisition plan in an attempt to become the number one
global leader in the electrical market. As various companies have
been acquired, there has been a key focus on these businesses
maintaining their existing business systems so as to allow these
businesses to maintain their market presence and dominance that
they hold in their niche markets and sectors. This strategy also
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Each local office and national head office had a great amount of
autonomy where they managed the business activities on their own.
Being locally run business units also meant that operational systems
where decentralized with no ability to share information out to other
business units. This would mean delays in product supply and the
ability to get important information quickly to assist customers with
their needs and issues.
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ERP Failure
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Also with data which was the most important area that needed to be
addressed with this new system and there was a fundamental issue
with regards to the master data that needed to be configured. As the
system was to be a global one it was important that this master data
was correct. The master data was coming from many different
business areas which had different formats for the data. These
differing data structures were needed to be merged together in the
areas such as customers, venders and material information. With no
set process in place to achieve this requirement, it took significant
changes and multiple communications across many different
countries and business divisions to finally come to a resolution. Yet
still it was impossible to get different divisions to decide on how this
master data would look.
It was decided that the new system would not run in parallel to the
old and that the old system would be turned off at go live. This
caused a very large amount of disruption within the business at all
levels from sales and marketing to logistics and accounting. In
addition it also impacted the customers. Orders were not getting put
on the system correctly, incorrect equipment was getting delivered,
goods where not turning up at all or delivery delays were
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The difficulties in the project and the stress levels that were created
in particular areas of the business caused a large disharmony in the
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Staff also felt that there was a very limited amount of communication
being provided to employees. This lack of communication meant
that staff did not recognize or even see the need to change the
business systems and therefore didn’t see the benefits. The lack of
communication before the go live date saw a high percentage of
staff turnover in particular areas of the business such as customer
service. It wasn’t till new staff were employed and the resistance to
change was lower that the acceptance of the new system improved.
At this stage training was still lacking and this did not help in
reducing the fear and concerns about the new system. It was not
until the new system was running and significant limitations were
being seen that the organization identified that areas such as
training and support needed to be boosted to assist employees that
were struggling with operating the new system.
The business units from each division have had a significant amount
of autonomy in their business and the process of implementing an
ERP system was one that caused much frustration. Each business
unit needed to hand over ownership and coordination of their
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The Symbolic frame view point shows that that people are creative
through expression and energy so as to achieve at a higher level of
being. This was most probably the biggest limiting factor of this ERP
system implementation. It produced the largest cultural shift ever
seen in this organisation.
The barrier to change was that the employees did not see the need
to change which is seen with many other organizations that
implement ERP systems. (Huq, Huq, & Cutright 2006) Whether it
was the worker on the shop floor, supervisors, production
managers, middle management and even senior management
throughout the organization, there was a significant reservation
about this whole process. The main reason for this was due to the
culture of the business. Though the organization has been a global
company for many years, there was always a sense that because
each business division always operated independently they had the
feeling of a much smaller and more personal business. As long as
the business unit constantly achieved their financial targets set by
the corporate office the business was left alone to do what if felt it
needed to do to achieve its targets. Because of this small business
feel, employees were given much flexibility in expressing
themselves and being creative that gave them a personal
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What does not help with this feeling across the business also relates
to an already major change in the business less than 8 months
before. This change involved a major business unit restructuring
project that saw the integration and separation of two divisions. This
change process though important in aligning the business globally
saw a significant negative cultural adoption by both divisions. This
involved many employees requiring either moving offices or job role
changes and having to handle organizational structural and cultural
differences. This produced a new organizational division with new
roles and objectives in a business that they did not totally grasp.
This produced a significant negative cultural change and showed
too many employees that the organization did not have a good
handle on the impact of the businesses culture when implementing
a change process. Having failed once already in a short period of
time did not give any employee confidence that the organization
would get it right the second time around.
12 months on from go live, the ERP system has become a lot more
stable and is being better received from both the employees and the
customer. There is still a lack of utilizing the system to its full
potential internally, both at an employee level and management
level and there is still a high resistance to the adoption of the
system. Customers believe that their level of service is still poor
compared to the level of service they received from the old system.
There are many deep scars in the organization because of the ERP
implementation and the biggest impact has been a significant
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Conclusion.
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References:
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