# Change Management:Embrace the Change
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2016-08-02
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Maximising Business Growth with Effective ERP Systems
Meta Description: Discover how innovative ERP systems can help UK manufacturers navigate through industry changes, improve efficiency, and manage business growth effectively.
URL: https://financedigest.com/change-managementembrace-the-changehtml

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**_Andy Archer, Regional Vice President, Epicor Software, UK and Ireland_**

The manufacturing industry in the UK is no stranger to change and the need to be flexible and responsive has never been more apparent than in our current climate as we enter a withdrawal period from the EU.  Some commentators have stated that Britain’s exit could result in [opportunities](https://www.politicshome.com/news/europe/eu-policy-agenda/brexit/opinion/kpmg-llp/76518/what-does-brexit-mean-manufacturing) for its manufacturers, proposing that a drop in the value of sterling could make the UK a magnet for trade and the need to reshape trade policy may result in quicker decision making and reduced red tape.

Regardless of what’s happening at home international industry pressures can be a force to be reckoned with, the macro-economic climate has significant input.  However, if adventurous companies view these macro-economic changes as opportunities, whilst their competitors are looking inwards and being cautious, they can react [faster to sector trends](https://www.financedigest.com/trend-micro-vision-one-stops-threats-faster-streamlines-operations-and-cuts-costs.html "Trend Micro Vision One Stops Threats Faster, Streamlines Operations and Cuts Costs") and outperform their competitors.  Of course the ability to be adaptable and responsive is heavily reliant on companies having [effective technology](https://www.financedigest.com/negative-effects-of-technology.html "Negative effects of technology") in place to facilitate this kind of flexibility.

**Growth means change**

Epicor undertook a survey into [growth](http://www.epicor.com/UK/Press-Room/News-Releases/Nine-in-Ten-Businesses-Caught-Out-by-Unplanned-Growth.aspx) last year, which demonstrated just how many business leaders were concerned about the impact that growth had on their business. Half (48%) said they worry that [business growth](https://www.financedigest.com/albumin-market-in-depth-analysis-business-strategies-and-growth-rate.html "Albumin Market In-depth Analysis, Business Strategies, and Growth Rate") puts excessive pressure on operations, damaging quality and customer satisfaction. A substantial number of businesses (42%) were also concerned that their business IT [systems may prove unable to cope with managing](https://www.financedigest.com/traffic-management-systems-growing-at-a-cagr-of-22-5-for-2022-28.html "Traffic Management Systems growing at a CAGR of 22.5% for 2022 – 28") a larger, more complex, business model.

To support business growth, and prepare for its challenges better, 79 percent of businesses believe that an [effective and integrated](https://www.financedigest.com/effective-integration-will-improve-mobility-in-the-tl-sector-over-the-next-five-years.html "Effective Integration Will Improve Mobility in the T&L Sector Over the Next Five Years") IT infrastructure is essential.  Echoing the Epicor research, [the Annual Manufacturing Report 2016](http://www.themanufacturer.com/reports-whitepapers/annual-manufacturing-report-2016/) revealed that ERP systems have been given top priority by the highest number of companies this year (25%), followed by upgrading IT infrastructure (16%) and manufacturing execution systems (11%).

Enterprise Resource Planning (ERP) is a fundamental part of the IT infrastructure supporting growth. Today, it is used as far more than a transactional tool. UK [manufacturers use ERP to gather data throughout production](https://www.financedigest.com/why-are-commercial-food-products-manufacturers-adopting-insect-growth-regulators.html "Why are Commercial Food Products Manufacturers Adopting Insect Growth Regulators"), analyse machine performance, gain efficiencies in design, review and improve production processes and manufacturing. The reinvention of business [processes in the industry has eliminated wasted time and focussed on creating](https://www.financedigest.com/growth-of-mineral-processing-and-mining-industrie-is-creating-demand-for-rotary-trommel-market.html "Growth Of Mineral Processing And Mining Industrie Is Creating Demand For Rotary Trommel Market") huge productivity improvements.

ERP can also be vital in [managing workforces effectively through transition periods](https://www.financedigest.com/healthcare-quality-management-market-is-expected-to-register-highest-cagr-of-12-during-the-forecast-period-2021-to-2031.html "Healthcare Quality Management Market Is Expected To Register Highest CAGR Of 12% During The Forecast Period 2021 to 2031"). During times of expansion it is inevitable that additional pressure can be put on staff and ERP can effectively highlight where additional resources may be needed, prepare teams for periods of intense [production and provide employees with the reassurance that management](https://www.financedigest.com/geometric-progression-based-on-digitization-to-be-witnessed-by-reproductive-management-products-market.html "Geometric Progression based on Digitization to be witnessed by Reproductive Management Products Market") understand the wider impact that their company’s transition may have. [Managing change](https://www.financedigest.com/uk-at-forefront-of-fx-management-change.html "UK at Forefront of FX Management Change") is a constant, ongoing process that needs to start from the very beginning and continue throughout the implementation to the end-user training for all relevant staff.

**Managing the change**

Business expansion and [digital transformation](https://www.financedigest.com/intelligent-investment-in-digital-transformation-driving-change-from-the-grassroots.html "Intelligent investment in digital transformation: Driving change from the grassroots") is positive, but can bring with it the problem of a complex web of IT systems, old and new, operating in silos and preventing an end-to-end view of the business that is so crucial to true productivity. Consequently, whether change comes through acquisition, merger, [planned or unplanned growth](https://www.financedigest.com/plan-c-uk-pm-johnson-not-planning-further-covid-rules-despite-omicron-growth.html "Plan C? UK PM Johnson not planning further COVID rules despite Omicron growth"), it is often followed by improvements in IT and ERP systems. This change [needs to be managed](https://www.financedigest.com/looking-to-buy-a-rental-property-heres-why-you-need-a-property-manager.html "Looking to Buy a Rental Property? Here’s Why You Need a Property Manager") effectively. As we implement ERP systems for small and medium-sized manufacturing operations up and down the country, we [see that the introduction of these systems can be the most visible sign](https://www.financedigest.com/adecco-sees-signs-of-a-hiring-slowdown-at-start-of-2023.html "Adecco sees signs of a hiring slowdown at start of 2023") of change for a large part of the workforce.

**C-suite buy-in**

It is important to [gain broad](https://www.financedigest.com/dollar-makes-broad-gains-on-inflation-worries.html "Dollar makes broad gains on inflation worries") organisational support during all phases of the project. A distinguishing trait of the best-in-class ERP implementations we see is that they have the full commitment of the company’s executives. Without this support, IT initiatives are more likely to be “starved” for corporate [funds and resources](https://www.financedigest.com/norway-sovereign-fund-backs-teck-resources-in-battle-with-glencore.html "Norway sovereign fund backs Teck Resources in battle with Glencore"). IT initiatives often begin with the CIO or IT director, but the buy-in of the CEO, CFO, and other [C-level executives](https://www.financedigest.com/zivver-expands-leadership-team-names-three-new-c-level-executives.html "Zivver Expands Leadership Team, Names Three New C-level Executives") is critical.

**Planning equals successful implementation**

In addition, planning should begin during the earliest project phases. Companies get excited about the benefits of implementing ERP and want to “dive in” without a fully developed plan. The project [plan should have time](https://www.financedigest.com/sterling-plunges-to-all-time-low-in-scathing-appraisal-of-fiscal-plan.html "Sterling plunges to all-time low in scathing appraisal of fiscal plan") built into it for defining requirements, key performance measures, and vendor evaluation and selection. The best [plans have buffers built into the schedule to account for activities such as testing](https://www.financedigest.com/ferrari-enel-x-plan-solar-plant-near-fiorano-test-track.html "Ferrari, Enel X plan solar plant near Fiorano test track"), data migration, and unforeseen events that occur in every implementation. Companies that invest in comprehensive, upfront planning often experience shorter implementation times and spend less money overall than their peers.

**Employee buy-in**

Changing business processes can cause changes in familiar workflows for people throughout the organisation, whether they are directly involved in the project or not, and this process must be managed for the workforce. Employees need to be introduced to new processes and job roles over a [period of time so that they can accept and internalise these developments](https://www.financedigest.com/most-recent-development-report-on-centrifugal-chiller-market-to-witness-exponential-rise-in-revenue-share-during-the-forecast-period-2021-2031.html "Most Recent Development Report On Centrifugal Chiller Market To Witness Exponential Rise In Revenue Share During The Forecast Period (2021-2031)"). Neglecting this aspect of implementation or putting it off until late in the project may result in organisational resistance to the new system, even to the point of operational risk.

**Continual evaluation**

Finally, the establishment of regular reviews with the [executive team](https://www.financedigest.com/adnami-strengthens-executive-team-with-jorgen-gosvig-appointed-as-cfo.html "Adnami strengthens executive team with Jørgen Gosvig appointed as CFO") or the project steering committee is critical to keep them informed about project progress.

Changes should be [made to achieve a strategic](https://www.financedigest.com/uks-made-com-to-cut-jobs-and-launch-strategic-review.html "UK’s Made.com to cut jobs and launch strategic review") goal, whether that goal is operational effectiveness, improving customer service or simply cost management. Whatever change an organisation is required to effect, thoughtful planning, effective communication and employee acceptance will [lead to successful change](https://www.financedigest.com/how-to-lead-organizational-change.html "How to Lead Organizational Change").

Through investment in innovation, reinvention of business processes and the right change management processes, the [future holds](https://www.financedigest.com/what-does-the-future-hold-for-corporate-payments.html "What Does the Future Hold for Corporate Payments?") plenty of potential for UK manufacturing. We may not be the ‘workshop of the world’ in terms of churning out huge volumes of products, but our [success lies in how we use skills and technology](https://www.financedigest.com/how-to-establish-a-successful-technology-strategy.html "How to establish a successful technology strategy") to create sophisticated, world-class products and services.

_**(Optional mini case study Box Out)**_

**_Focus on: Hayward Tyler Ltd: Business-changing transformation_**

_Hayward Tyler designs, manufactures and services fluid-filled electric motors and pumps for high-pressure, high-temperature [applications and environments across the global energy](https://www.financedigest.com/energy-management-system-market-2021-by-global-key-players-types-applications-countries-industry-size-and-forecast-to-2025.html "Energy Management System Market 2021 by Global Key Players, Types, Applications, Countries, Industry Size and Forecast to 2025") sector. Last year they won an Epicor customer award in the category of [business transformation](https://www.financedigest.com/the-modern-cfo-at-the-forefront-of-business-transformation.html "The Modern CFO: At the forefront of business transformation"), sharing a story of true business transformation._

_Keith Herring, Head of IT, at Hayward Tyler, explains:_

_“In 2013, we were close to going out of business._ _We had almost £1 [million in warranty claims and in some cases were over 170 days late delivering customer](https://www.financedigest.com/crypto-broker-genesis-owes-geminis-customers-900-million-ft.html "Crypto broker Genesis owes Gemini’s customers 0 million – FT") orders. However, through a dedicated turnaround [team who galvanised the whole](https://www.financedigest.com/are-your-it-team-telling-you-the-whole-truth.html "Are your IT team telling you the whole truth?") company and introduced systems to succeed and deliver for our customers, the turnaround was immediate._

_“Among other initiatives, the turnaround [team created the environment](https://www.financedigest.com/frameplay-announces-new-attention-metric-in-video-game-environments-validated-in-partnership-with-dentsus-attention-economy-team-by-first-to-market-studies.html "Frameplay Announces New Attention Metric in Video Game Environments, Validated in Partnership with dentsu’s Attention Economy Team by First-to-Market Studies") for Continuous Improvement, cleansed our ERP source data and ‘Leaned Out’ our processes, most importantly we engaged the whole workforce. We also upgraded our Epicor software to match our new methods of working. We saved jobs and allowed the business to grow and expand, celebrating our 200th anniversary in 2015, and [remaining in a successful position](https://www.financedigest.com/automotive-glass-market-to-witness-sales-slump-in-near-term-due-to-covid-19-long-term-outlook-remains-positive.html "Automotive Glass Market to Witness Sales Slump in Near Term Due to COVID-19; Long-term Outlook Remains Positive") in 2016._

_“Being recognised by our peers with the Epicor award was a true reward for all the hard work every employee inputted into the turnaround process, it meant a lot to us all.”_


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