How to convince your CEO about ERP value

Usually, CEOs have a clear vision of how their business should operate and this vision is based on specific values. Furthermore, shareholders and/or other financial factors pressure them to meet specific goals. Given that an ERP solution is indeed a costly investment, in order for CEOs to commit to such a complex project, they need to see that there are tangible financial results. At the same time, CEOs often are not aware of the barriers restricting business operations, so they need skilled people that understand these details and are capable of promoting their vision. If you can identify with the above, here are some suggestions that can prove helpful:

Understanding the business

What differentiates your business in the market? Why do customers prefer you instead of your competitors? What are the necessary changes in your business operations that will make it even more competitive? If you want to argue your case in favour of a new ERP system, you have to present financial benefits.

Understanding the CEO

You need to be familiar with your CEO’s vision and motivations, by carefully reading reports and listening to what is said in meetings and so on. Furthermore, you need to gather more information regarding the reasons behind your CEO’s disapproval of an ERP solution. Discover how other initiatives have been presented in the recent past, learn from them and wait for the right moment.

Understanding the problems of legacy systems

Some of the most common problems presented by legacy systems are the following:

1. Legacy system users complain that they need to manually transfer all data from one system to another.
2. There are compatibility problems among different systems.
3. There is lack of prompt and accurate information.
4. Valuable time is lost in order to compile data from heterogeneous systems that are required for analysis and reporting purposes.
5. Due to the current system’s inability to manage data, valuable information is not collected and analysed.
6. Each department works in a different way due to the lack of continuity.

These are some of the issues of legacy systems, and they can prove to be valuable in supporting your argument.

Alliances among different departments

It is well known that issues related to systems and processes occur in different business departments. Therefore, it is not unlikely that other department managers within the company, are facing the same problems and similar concerns, while they may also have their own ideas on how to improve things. This is your chance to build strong relationships, discuss common issues and decide that a new ERP system is the solution that will benefit all and resolve all these problems.

Building a strong case

You can begin your efforts by using the complaints that employees have expressed. For your arguments to be accepted, you need to be prepared to quantify the estimated improvements in customer service, resource efficiency and other possible benefits. Without the necessary facts, you cannot build a strong case!

After all, when a CEO turns down a proposal for a new ERP solution, this does not necessarily mean that the matter has definitely closed. You can always start over, gather all the necessary information and, if everything is clear, it is possible that the next time you’ll be discussing replacing your legacy systems, your CEO will have no option but to agree that ERP is the right move!