A review of successful ERP implementations has shown that leadership and top management commitment are the most critical factors in organizations embarking on ERP implementation, as they ensure a smooth change management and system rollout (Bingi et al., 1999). Not only is the requirement for setting the vision and the direction for the business, it is also for harnessing the energy and creativity of employees, for enabling the business to perform, for implementing modern concepts such as BPM and for exploiting the technology capabilities of an ERP system. Furthermore, leadership is a propagated approach of individuals and champions who can effectively implement change programs such as ERP systems and who are not averse to modern ideas, learning and growing the business through innovation and best practices (Al-Mashari et al., 2001).
The experience of Microsoft highlights the importance of having top management directly involved in planning and implementing an ERP system. Microsoft’s top management was instrumental in overseeing its ERP project, and the entire board reviewed and approved the plans (Deloitte Consulting, 2000). At ALEVO, the decision to implement an ERP system was also made at the board level, and the senior management team input was very important when selecting a suitable vendor (Welti, 1999). Top management support and commitment does not end with initiation and facilitation, but must extend to the full implementation of an ERP system. HP noted that ERP implementation is about people, not processes or technology. The organisation went through a major transformation, and the management of this change was carefully planned (from a strategic viewpoint) and meticulously implemented. All the case studies analysed have shown that the key to a smooth rollout is the effective change management from top. Intervention from management has been necessary to crucial for the adequate resourcing of the project, to taking fast and effective decisions, resolve conflicts and bring everybody to the same thinking, to promote company-wide acceptance of the project, and to build co-operation among the diverse groups in the organisation, and in many times across national borders. Top management needs to constantly monitor the progress of the project and provide direction to the implementation teams.