How much is ERP Training worth to you? For one company it was worth millions

The ERP implementation processes is a very long and drawn out process and as you get closer to the end, it’s easy to skip some of the last steps just to be able to call it ‘done.’ For many companies end-user training is one of the areas that gets glanced over because it takes additional time and money.  The trouble is that empowering your employees with the knowledge they need to use the system is mission critical to your ERP project success!

If users do not learn how to use the system they either (a) will not use the software at all or continue with the inefficient processes you’re trying to get away from, or (b) they will use it incorrectly. Either way you stand to lose out on the benefits and ROI you were hoping to see. I’m not just being dramatic either, Lumber Liquidators knows how true this is.

After mishandling their ERP implementation in 2010 the company, the #1 retailer of hardwood flooring in the United States, watched their net income drop by about 45% compared to the previous year.  Executives readily admitted that product fit and installation was not to blame, it was a lack of training and change management that caused them to lose millions of dollars. In addition to net income, the company also noted an estimated $12-$14 million loss due to reduced productivity and unrealized net sales. All because they did not go through thorough training.

Unfortunately Lumber Liquidators is not alone, many companies have seen similar trouble due to insufficient attention to employee training. Here are a few ERP training best practices to follow if you’re planning an ERP implementation.

• Create a training plan: A solid plan will be the foundation for successful training, so be sure to have one in place that covers questions such as:

• Keep up with documentation: As time goes on you will have employees who come and go, employees who change roles, and some who just forget their initial training. That’s why it is critical to keep up with documenting the processes and practices discusses in training and any changes to the system or processes over time. This will ensure training documents are always up to date and reflect the current way you work, not the way you once worked when the system was first implemented. Assign this task to one person in each functional area who knows the company, the processes, the procedures, and the system very well.
• Tailor training to individuals: Every job is different, so the way your employees will be using the new system varies from one person to another, so it’s important to personalize trainings for various roles. For example, your logistics, customer service, and sales team may all use the same modules within the system; they will not use them in exactly the same way so it’s important they know the difference while also understanding how their use of these modules will impact related parts of the business.

Do not forget to think about the different learning styles of your employees. While one person may get a lot out of a live classroom training, others may be able to better retain information by reading it or watching a video.

• Provide ongoing opportunities: As we briefly touched on in the section about documentation, ongoing training and support is huge to ensure your time and investment in the system and the initial training remains successful. As time goes on be sure your employees are aware of updates to the system, new functions, and how these and other changes might impact their daily activities.

Another thing to think about: Are you providing strictly ERP training or ERP education? There’s a difference!

ERP training is extremely important and as we saw from the Lumber Liquidator story, a lack of focus on training can kill the ROI of your project, derail productivity, and hurt overall profitability. Putting your training plan together is not easy, but it’s worth it in the long run if you do it right.

Just remember that you’re not alone, ERP consulting organizations like us are here to help! We can help you design a program to meet your specific business and user needs, put it into action, and measure the results.

 
e2b teknologies is a passionate and experienced team of industry leaders and business advisers providing high quality, uncomplicated, and innovative ERP and CRM software with turn-key ERP consulting and custom ERP development services.

Contact us today or follow us on twitter@e2bteknolgies to learn how we can help you succeed with your ERP software project.