ERP Success Tips: Link employee incentives with ERP success

As part of the Series on ERP Success Tips by InfoVerto, this time we are sharing another useful tip that will increase the chances of success of your ERP endeavor by many folds. This tip has resulted from the fact that lot of ERP programs these days are impacted by attrition of business team members and their inconsistent and uninterested participation. These business team members are part of the core team from business side for ERP solution deployment and their full fledged involvement and continuity is very important for the success of the program. Also, it is seen multiple times that business will lend only those resources for the ERP program that are either redundant or are close to redundancy to their present business function. They normally are not the best people from the business function which is a key need of an ERP program which without doubt is a strategic program for every organization. This is an issue that needs to be addressed and hence this tip.

Few companies may not see the link between the success of an initiative like ERP (or for that matter Lean or Six Sigma) with employee’s compensation but this is key component in motivating employees and is a sign of support from the executive leaders of the organization. This also sends out the signal that how important is this initiative for the organization and anybody involved in this and contributing to this, will have high visibility and growth path. Aligning compensation with performance is not a new idea but is has become a key component of the debate around excessive executive compensation. The need is to devise ways and means to compensate the ERP team members in such a way that they are:
  • Motivated to join the team (infact we may see a competition between employees to join the team) and see that as an important opportunity of their career
  • Keen to participate vigorously during the course of ERP program to their best of abilities
  • Ready to ensure that the program is a big success and are excited to create a buzz about this in the organization
  • Not digressed towards looking for a change of job midway of program as soon as they learn the intricacies
  • Proud of being involved in one of the most important & visible initiatives of the organization
For all of this to achieve, it is important that the incentives that they will get as part of this program, are well distributed in such a way that they spend at least 6 months after the Solution Go Live, in the organization and spread the knowledge. There are deliverables and milestones that can be linked to their incentives and it can be made sure that one of the major concerns regarding ERP success can be mitigated pro-actively.

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