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iStock_000026923153MediumYou see the same problems day-in and day-out – duplication of tasks, process inefficiencies and lack of visibility into data. While it’s clear that your company needs a new ERP system, it can be challenging to convince senior management of this necessity.

Obtaining executive buy-in for new ERP software is crucial to the project’s initiation and overall success. Many ERP implementations fail due to the lack of executive support and engagement, resulting in thousands or millions of dollars in financial loss. Without executive engagement, your organization’s ERP implementation is likely to be limited in funding, abounding in employee resistance and lacking in oversight and direction. In order to convince your C-Suite executives of the importance of new ERP software and their support of the ERP project, consider the following five approaches:

1.  Quantify the benefits. Similar to any other company initiative, it is important to measure the return on investment (ROI) and quantify the benefits. Demonstrating your pain points will help senior management better grasp the extent of the inefficiencies.  Perhaps running a weekly report in your department is time-consuming and frustrating, but by estimating the time spent creating the report and the number of employees required to perform the task, you will be able to quantify the time wasted. If it currently requires three employees to spend about two hours each to compile the report, that’s approximately a savings of 312 hours annually.

2.  Support business growth. As your business continues to grow, are your current processes sufficient to support the growth?  Business growth is a common strategic goal of many executives. By unveiling processes that will need to be improved and streamlined in order to support increased sales or services, the need for a scalable ERP system becomes even more evident.

3.  Obtain employee buy-in. An ERP implementation is a company-wide project. By learning about the painful processes of other departments and teams, you will be able to further quantify the potential benefits of a new ERP system. If a number of departments and employees support the initiative, it will encourage executives to give it high priority.

4.  Improve customer satisfaction. Inefficient business processes  consume time and cause frustration, which oftentimes, carries over  to your customers, either directly or indirectly. For example, manual processes will typically cause delays in customer onboarding, order processing, production and shipment. By improving transparency and streamlining the business, customer satisfaction will improve as well.

5.  Regulatory adherence.  A new ERP system will enhance reporting and tracking capabilities, which typically translates to improved regulatory adherence.  Quality inspection results will be more closely captured and recorded, and regulatory reports will be more readily accessible.

By following these guidelines, you can successfully convince your boss that your organization needs new ERP software.

Learn more by watching our on-demand webinar, Lessons Learned From Failed ERP Implementations.