The Perils of a Micromanaged ERP System Implementation

by Panorama Consulting Group | Dec 19, 2011

As anyone who has ever been micromanaged by a supervisor can tell you, its effects can be disastrous. But when it’s undertaken by a leader in a project as important as an ERP implementation, the results can be absolutely fatal . . . at least to the health of the project, that is. When a boss focuses on every minute aspect of a subordinate’s performance, he or she actually destroys confidence, lessens morale and creates an environment of devastating inefficiencies. Perhaps worse still, this type of focus typically means that the boss is failing to take the bigger picture into account, which can have an understandably negative impact on the overall business. Conversely, when employees are given the freedom to make decisions, their inspiration to do better at their work by finding creative solutions and taking calculated risks rises.

A micromanager has a mistaken and even compulsive belief that no one can accomplish anything without his or her input. In an undertaking as vast as implementing a new ERP system, this level of inefficiency can (and will) blow budgets and timelines. Further, a micromanaged environment can be so warped and so hostile that the even the company’s best and brightest will stop performing at top capacity. So what can a boss or even a direct report to a micromanager do to address the situation?

1. First, understand that micromanagement is really an issue of control. As we often say, the implementation of an ERP system can be incredibly stressful for all involved. Team leaders often have ERP implementation results tied directly to their performance reviews, which can ramp up anxiety and create an even greater need for ‘perfection’ and control.

2. Secondly, talk to the person. As a subordinate, it can be incredibly intimidating (and ill-advised) to question a superior’s management skills. Instead, couch the conversation in a way that makes clear that the overall success of the ERP project is the first priority. Ask to institute project checkpoints, such as weekly check-ins, to determine specific goals, tasks and tactics. Make clear that you want to be a valuable asset to the team, and that you are ready to take the next step in terms of accountability. Higher-ups can create these kind of environments as well by being incredibly clear about the importance of the ERP implementation being a team project and determining targets and deliverables at each level. Make sure that staff members know that mistakes will happen and that it’s OK — an ERP implementation is a process and an opportunity for learning and you will all get through it.

3. Then, get some help. Micromanagement is frequently found in people who don’t have confidence in their leadership skills. As part of your organizational change management plan, invest in leadership training initiatives for all of your ERP implementation leads. If you’re not high up enough to suggest this course of action, ask your human resources department to intervene.

Micromanagement is often likened to psychological warfare. Add to that the intensity of an ERP implementation and you’ve got a powder keg waiting to explode. But, as in war, it’s strategies and tactics that will get you ahead regardless of whether you’re a foot soldier or a general. To understand more about the impact that an ERP implementation can have on staff members, search this blog for posts about organizational change management or check out our on-demand webinar, Five Common Organizational Change Management Challenges During ERP Implementations.

FAQs About ERP Implementation Failure in Pharma​

How do food and beverage ERP systems differ from general-purpose ERP?

General-purpose ERP handles orders and financials well, yet it tends to treat a recipe as a static bill of materials. Purpose-built food and beverage ERP systems support yield variability and catch weight pricing, and they allocate inventory based on remaining shelf life rather than on the date a lot was received.

What should we look for in ERP for the food and beverage industry during demonstrations?

Ask vendors to run your own scenarios rather than their prepared script. A mock recall traced backward from a finished pallet to every ingredient lot will tell you more than any feature matrix, because it exposes where the platform still relies on manual reconciliation.

Is food traceability software a separate purchase from ERP?

Some vendors embed lot genealogy and recall reporting directly in the core platform, while others expect a bolt-on product or a warehouse management layer to carry it. The distinction matters at contract time, because integrated food traceability software is priced inside the license, and a bolt-on arrives as a separate line item with its own upgrade path.

How long does selecting food and beverage ERP software usually take?

Timeline depends far less on the software than on how many distinct manufacturing modes the business runs. A single-plant processor can move from requirements gathering to contract signature considerably faster than a multi-site operation where harvest operations and formula-based manufacturing each need their own requirements workshop before any vendor can be scored fairly.

What is the biggest risk when selecting a food manufacturing ERP system?

The biggest risk is underspecified requirements. When only IT and finance define scope, the realities that plant supervisors and quality managers handle daily stay invisible until testing begins, and by then configuration decisions are already locked. Requirements workshops held on the plant floor before vendor contact are the cheapest available correction.

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Panorama Consulting Group is an independent, niche consulting firm specializing in business transformation and ERP system implementations for mid- to large-sized private- and public-sector organizations worldwide. One-hundred percent technology agnostic and independent of vendor affiliation, Panorama offers a phased, top-down strategic alignment approach and a bottom-up tactical approach, enabling each client to achieve its unique business transformation objectives by transforming its people, processes, technology, and data.

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