Implementing ERP and Scarce Labor Hours – A Question of Balance

Many of you who work or run small or mid market businesses are all too familiar with the dilemma of balancing ERP system capabilities and scarce available labor hours.

Because to most small businesses, labor hours are scarce, revenue generation is everyone’s primary concern.

The thought of spending time operating and maintaining an ERP system is looked upon by many to be non value added activity.

At the same time streamlining business processes and automating tasks to tie your cherished labor hours more directly to revenue generation is a constant goal.

So a balance between labor and automation must be struck in conserving labor and optimizing an ERP system in supplying the right labor with the right mission critical information.

It would make sense that hours spent with your system in the optimization of core business processes would be a high priority. However this is where balance is important. A process is only as good as you have people implement it and to run it.

A highly sophisticated process, one with a level of detail not required in your smaller enterprise would be highly detrimental to revenue generation. In fact, taken to an extreme, a small business with too many such processes would cease to function altogether.

So when considering an ERP system or bringing a post implementation module on line, you must balance Enterprise System operations to your available labor.

Only you and your team have the vested interest, experience and knowledge to appropriately answer this critical question of balance, however, the time you spend in balancing these critical elements will pay your organization back many times.

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