ERP Change Management That Works: Strengthening Foundations for Growth

Discussion with Nicholas Latkovic

With over 40 years of experience in the manufacturing and IT sectors, Nicholas Latkovic has seen digital transformation at its most complex—and most consequential. A structural engineer turned IT leader, Latkovic’s career has spanned the evolution of enterprise systems from mainframes to modern ERP platforms. In this exclusive Expert Lens article, he shares hard-earned insights on how to successfully execute ERP overhauls that align technical upgrades with operational readiness. From cultural preparedness and stakeholder buy-in to vendor dynamics and last-mile logistics, Latkovic distills what truly matters when changing the digital backbone of an organization.

Organizational Readiness: Asking "Why" Before "How"

A successful ERP transformation doesn’t start with technology—it starts with introspection. According to Latkovic, leaders must first ask: Why are we doing this? That fundamental question uncovers pain points in order-to-cash cycles, system redundancies, and customer service inefficiencies that drive the need for change. "You have to look at all parts of your organization", he said. "Is the current system causing pain for you, or your customers? Are there too many touches from order placement to fulfillment?"

Yet readiness isn't just about awareness. It’s about alignment. ERP readiness requires mapping out where the organization stands: unprepared, partially prepared, or fully ready. Most, Latkovic argues, fall between the first two categories. That’s why leaders must invest in a cultural and operational audit before onboarding vendors or setting timelines.

He emphasizes that change is not only technological but emotional. "Legacy systems are comfortable", Latkovic noted. "Even if inefficient, they’re familiar. Change is disruptive by nature—it must be justified and managed from the top down".

Change Management: Championing Transformation from Within

Latkovic is clear: the heartbeat of any ERP overhaul is a strong, respected change management team. And not just any team—one composed of cross-functional leaders with credibility and trust across the organization.

Too often, organizations underestimate the importance of selecting the right representatives. Rather than assigning individuals with limited engagement or visibility, it's essential to involve those who are deeply embedded in company operations and widely respected by peers.

These individuals become the voice of transformation, translating between executive strategy and frontline operations. They must be involved in coaching, training, and preemptive communication to ensure every level, from the C-suite to the shop floor—is informed and empowered.

He also warns of the top-down blind spot: "The C-suite is often vaguely aware of what’s happening until the go-live button is pressed, and then panic sets in. Your Change Management Team has to manage expectations both ways, especially upward".

Balancing IT Ambition with Operational Reality

ERP projects often falter when technical rollouts ignore the on-the-ground realities of departments like manufacturing or sales. Latkovic recommends inclusive planning processes that bring in diverse departmental voices from the outset. "Sales teams tend to be particularly sensitive to operational shifts", he said. "They worry that new systems will frustrate their customers. But if they're not included in the implementation process, they won’t help champion it".

The problem isn’t just technical. It's relational. ERP changes impact customer service, delivery timetables, pricing interfaces, and real-time responsiveness. Leaving out customer-facing functions can create internal resistance and external backlash. "I've seen multimillion-dollar rollouts jeopardized because one major customer wasn’t told about the changes", Latkovic recalled. "Communication can make or break your go-live".

Choosing the Right Implementation Partner

Vendor selection is more than a procurement exercise—it’s a relationship decision. Latkovic stresses the importance of testing consultants at all levels, from coding expertise to cultural fit. "Ask the hard questions. Where is the work being done? Who is coding? What projects have they done successfully, and with whom?"

He adds that in high-stakes rollouts, particularly those in the hundreds of millions, having a partner-level consultant from the firm on-call is essential. This ensures quick escalations, high accountability, and strategic continuity. "Once implementation starts, there’s no changing horses. You’re in. So make sure you're aligned on expectations, transparency, and responsiveness before you start". 

He also advises ensuring continuity with on-the-ground leads: "Your project lead needs to know the internal politics, key stakeholders, and escalation paths. They’re not just tech leads, they’re navigators".

Implementation Best Practices: Focus on the Customer First

Amid complex integrations, Latkovic underscores a simple truth: customer impact is the ultimate benchmark. ERP transitions that overlook customer satisfaction risk undermining years of trust and commercial partnership. "When the go-live button is pushed, there are parties and celebration. But on day two, the customer starts experiencing the change, and that’s when reality hits".

He recalls a near-crisis involving a major client that was not properly briefed on order system changes. The result? Threats to drop the company as a supplier. "Customers never forget your go-live. Make sure it's a good memory".

To do this, Latkovic suggests:

• Involving delivery and shipping contractors early
• Ensuring warranty, returns, and complaint processes are embedded
• Offering clear real-time order tracking for just-in-time operations

"Write it on the whiteboard: If the customer isn’t happy, no one is".

Budgeting and Expectation Management: Planning for the Unknown

Latkovic doesn’t sugarcoat the financial realities of ERP transitions. His advice? Ditch the lowball estimate strategy and present the board with a realistic, padded number. "When you go in with your budget, add 10%, then double it", he said. "It’s like home renovations, things will go wrong".

He notes that unforeseen integrations, like middleware between platforms (e.g., Oracle to Salesforce), can balloon costs unexpectedly. But transparency at the outset builds credibility and prevents reputational damage later. "Take your beating up front. Let everyone know it’ll take two years to implement, six months to stabilize, and ROI in 8–10 years. That’s the truth".

It’s Not Just a System, It’s a Strategic Shift

Latkovic’s closing advice echoes the overarching theme of his playbook: begin with culture, empower with structure, and obsess over communication. ERP transitions aren’t just technical, they’re deeply human. "Only 25% of organizations are truly ready for ERP change," he estimated. With over 40 years of experience in the manufacturing and IT sectors, Nicholas Latkovic has seen digital transformation at its most complex—and most consequential. A structural engineer turned IT leader, Latkovic’s career has spanned the evolution of enterprise systems from mainframes to modern ERP platforms. In this exclusive Expert Lens article, he shares hard-earned insights on how to successfully execute ERP overhauls that align technical upgrades with operational readiness. From cultural preparedness and stakeholder buy-in to vendor dynamics and last-mile logistics, Latkovic distills what truly matters when changing the digital backbone of an organization..

He outlined three critical takeaways for executive leaders planning ERP transitions:

• Cultural and Operational Readiness Comes First: Organizations must assess whether their internal culture, leadership alignment, and workforce adaptability are mature enough to handle disruption. Skipping this step leads to resistance and breakdowns that derail transformation efforts.
• Change Management is a Strategic Lever, Not a Tactical Task: Building a cross-functional team of respected leaders who can drive communication, coach teams, and serve as a bridge between strategy and execution is essential. ERP success is as much about psychology and influence as it is about system architecture.
• Prioritize the Customer Experience at All Costs: From warranty processes to real-time logistics, customers must feel the benefits of the new system—not its complications. Involve them early, communicate often, and embed their needs into every design and rollout decision.

From forming the right change team and choosing the right partner, to preparing your customers and over-communicating across departments, success lies in rigor, relationships, and relentless transparency. For leaders contemplating ERP transformation, the foundation must be laid far before the first line of code is written.

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