Worn out rubber soles and scuffed leather - we've all reached a stage where it's time to fork out for a new pair of shoes, but even though your old ones are a shoddy embarrassment, it can be hard to make the transition into unfamiliarity. Yes, you know that the design of a new shoe will be more up-to-date and that the improved structure will give you more support, but sometimes we get comfortable with second best. Strange as it sounds, the same can often be said of an IT system, so Food Manufacture asked Lawson Software and its customers how best to adapt to a new computer package.
Micheal Regan, a senior account executive at Lawson, has worked with a wealth of food companies, including IAWS, Kepak and Dawn Meats. He concedes that most of the staff he deals with are reluctant to accept a new system straight away. "It's human nature to be against change, even if you know it is a good thing," he says. "We often see the dynamics change with staff when a new package is introduced. Even though they hated the old system, they suddenly start listing all of its benefits."
Part of the fear is because with the new ERP system, it becomes clear that what staff do has an effect on other groups outside of their area and so people are forced to work smarter, he claims. "We explain to people that the trade off is that if you put more work in up front, then fewer problems will come up later down the line - it's about making people realise the return on their investment."
Early problem solving
Lawson's ERP system provides integration access and gets data to flow in real time. "This means you can address problems quickly, while they're still fresh in people's minds," he explains. "In the past, for example, many companies might have had the wrong order for a particular raw material, but it's been going on for such a long time that they've ignored the problem or found their own way of dealing with it. However, other departments may not realise the issue and this creates problems further down the line.
"With the new system it becomes more obvious that there is a problem and that it is affecting other departments, so it forces the problem out and it can be resolved," says Regan. "It really encourages the right behaviour."
Staff are sometimes against a new ERP package because they are afraid that they won't be able to work the new system. "They are worried they might look silly, so it's important to educate them," he says.
Lawson takes a 'train the trainer' approach whereby its consultants train up senior members of staff, known as 'super users' and they are then entrusted with teaching their colleagues.
"With the super users scheme, knowing that you have to pass your knowledge on makes you take it more seriously. Also, in-house people have more credibility when training others - they're not just 'some consultant'," says Regan.
Dan Heiderscheidt, worldwide IT director for ingredients firm Kemin Industries has found this method to be a success when configuring Lawson's M3 ERP system. "We've authorised a lot of our management to train people to do things," he says. "We used a lot of 'train the trainer' techniques so that they could own the process and feel empowered."
He claims that initially, employees thought the new system was slow, but it was in fact the users who weren't up to speed on the system. Many staff were trying to fit the old process into the new system and it was difficult to get them to accept that the new version would help them.
"It was a struggle pushing them up the hill and convincing all business unit executives of the importance of a new ERP system," says Heiderscheidt. "Not everyone felt that it was the highest priority for their part of the business."
He claimed that the company took a firm, but fair approach. "We had a deadline for cut-off [of the old system] as we knew users would want to keep using it. So we let them know it was sink or swim. This proved to be a smart decision because once users knew they were going to be thrown over the wall, they were keen to test the new system."
Promoting change
In order to involve staff in the move, the company used emails and newsletters to keep employees up-to-date. It also tried to get them excited about the new system using promotional tools. "As this was a worldwide change, we had to change tactics for each region - in the US we issued t-shirts, but Europe wouldn't be interested in that, so we had to look at alternative options."
Irwin's Bakery in Northern Ireland also did its utmost to get staff involved when it adopted Lawson's Quickstep ERP system six months ago.
"We ran a competition for staff to give the project a name," says joint md Brian Irwin. "Eventually the name Irwin 100 was chosen as it's a bit like a 100m race and we're heading for the finish line."
Irwin claims that staff are looking forward to the new system going live. "There can be a temptation to go back to the comfort of the old one, but we've got people convinced that the new system is the way forward. At the heart of this programme is our staff's progressive attitude. They understand that the food and drink sector is competitive and they all want to improve and for their company to succeed."
Another tactic that helped to convince staff of the benefits of new software was Lawson's opportunity analysis service, whereby a consultant was sent to the firm to spot any cost savings that could be made using the new system. "We split the company into seven sections and talked through the problems faced by each sector. We looked at how these influenced efficiency and how they could be addressed with the ERP system."
Whereas the company's old sales order processing package would often become snowed under with transactions, the consultant explained that material usage, sales value and profitability could be monitored on a daily basis with the new system. He showed how better production planning could save money; involve less handling; and meant that less cash flow was tied up.
"Then Lawson's analyser costed the savings that could be achieved and that gave us a comprehensive list where we could see real opportunities for the new system. This was quite a brave thing for Lawson to do," said Irwin. He claimed that it provided a great benchmark for staff and focused everyone's efforts on making the new scheme work. "We'd like to start making these efficiencies within four months of going live and over the next 14 months we'll want to see results."
Ensuring that you are aware of the benefits of a new system is essential to choosing the best ERP system to meet your needs, but it is winning over staff that will guarantee a successful implementation. This process will never be a walk in the park, but by empowering staff, manufacturers can make a smooth transition to a new system and find more efficient ways of working. FM