Andrew is an IT Director skilled in delivering business value from SAP implementations. He has decades of experience in the energy sector, from working on business architecture and change management to leading IT transformation programmes.
While the SAP S/4HANA platform delivers huge benefits such as streamlined processes and enhanced data insights, I’ve seen organisations stumble over two major pitfalls: failure to explain the why, and underestimating the complexity in their business. These issues can derail implementation programmes, but with the right strategies they are entirely avoidable.
Risk #1: Failure to explain the why
When C-suite leaders fail to effectively communicate the programme’s purpose and business-wide benefits they start on the back foot, and in some cases never recover. If managers don’t understand why the programme is happening, they’re not able to explain it to their teams. People on the ground won’t devote their time and expertise, leading to a suboptimal solution. This really hits home after go-live when people resist using the solution and therefore no business benefits can be obtained.
Your people may have genuine reasons for their reluctance in engaging, especially if all they see is disruption to workflows they believe are running smoothly. They may have been burnt by previous ERP projects, or have heard war stories from peers in other companies.
Without leadership engagement at all levels time is wasted as teams debate the necessity of the programme or question how it aligns with their objectives, which leads to delays, a lack of trust in the project, and operational inefficiencies that negate the value of the new system. Without strong leadership advocacy, the programme can become an uphill battle riddled with uncertainty and frustration.
For your SAP S/4Hana programme to be successful you need active, enthusiastic engagement at all levels of leadership and management in the business.
Risk #2: Underestimating business complexity
In my experience, businesses are rarely as straightforward as they appear on the surface. Over the years, mergers, acquisitions, and ad hoc solutions can create siloed teams, each with their own unique, and in some cases, arcane processes. When companies underestimate this complexity during the discovery phase of an S/4HANA programme, they end up wasting time and resources redesigning processes that don’t actually differentiate their business – and stakeholders fail to see the value of the programme.
This challenge ties directly back to the “why”. When people don’t understand the purpose behind the transformation, they may cling to familiar processes out of fear or uncertainty. Clear communication about the goals and benefits of the programme are essential right from the start for overcoming this resistance and ensuring a smooth transition.
The discovery phase is incredibly important for identifying which processes truly add value and which are legacy clutter, or wasting valuable resources. Beware – if process mapping isn’t done during the discovery phase and you launch straight in with the programme – it’s less likely to go smoothly.
How to mitigate these risks
Successful SAP programmes start with people not technology. From the outset, it’s really important to develop a clear narrative around the “why”. When employees at all levels understand the purpose and benefits of the transformation, they are more likely to embrace it.
Secure leadership buy-in
Leaders across the organisation need to be engaged from the beginning of the project and shown how the programme aligns with their department’s objectives and the broader company strategy. It’s important to have open and honest conversations, especially if this is likely to mean more work, or a different way of working in some areas. When leaders are fully on board and understand the “why”, they become advocates for the project, driving enthusiasm and adoption throughout their teams. Without this alignment, resistance can snowball and jeopardise the programme’s success.
Invest in people, not just technology
Long-term success also depends on assembling the right people for the project and providing them with the necessary support. Change management and training should be embedded in the strategy from the start – not left as an afterthought. Ensure there are people in each business area that are designated “change champions.” These people should be budding leaders in the business with a good reputation and well respected by their colleagues – they will be instrumental in liaising between the project team and teams on the ground. Ideally, silos between departments should be broken down to create alignment and a sense of collaboration across the organisation.
Leverage SAP’s built-in solutions to simplify your programme
Many companies make the mistake of trying to adapt standard SAP processes to their existing workflows when, in reality, most complexity can be eliminated by using SAP’s built-in solutions from the start. By streamlining everyday processes like payroll and reporting, and customising only what truly differentiates your business, you can unlock the full value of the new system.
This is my 80/20 rule. Around 20% of your processes drive 80% of your revenue, so getting those core processes right is vital because that’s where you differentiate your brand in the market. Meanwhile, the other 80% of processes (whether it’s 80, 70, or 60) are standard and should work right out of the box. Don’t overthink those – just implement and move on.
Be clear and consistent in communication
Ultimately, consistent and regular communication should underpin the project at every stage – teams need to hear the same message from leadership repeatedly throughout the project to create trust and ensure everyone remains focused on the shared goal.
SAP S/4HANA is a powerful tool, but it’s only as effective as the people using it. By securing leadership buy-in early, and clearly reiterating the why to all stakeholders, you can ensure your SAP programme delivers the business benefits it was intended to provide.
Ready to start your SAP programme? Make leadership engagement your first step, not an afterthought. To learn more about setting your S4/HANA project up for success, get in touch.
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