Throughout my career in manufacturing environments, I’ve consistently observed a key challenge when scaling ERP (Enterprise Resource Planning) systems: while Key Users are essential for day-to-day operations, they are insufficient to address the complexities of managing ERP systems across multiple sites. This pattern holds true regardless of the ERP system in use—whether SAP, Oracle, QAD, or Infor. Any ERP/MRP system with a global reach requires a structured governance model to function effectively and deliver its full potential.
A three-tiered governance model—incorporating Central ERP Teams, Super Users, and Key Users—provides the necessary structure to balance corporate oversight with local execution. This article outlines the roles and responsibilities at each level, demonstrates how workflows can flow top-down and bottom-up, and offers strategies for keeping the structure alive over time.
The Three Levels of ERP Governance
- Central ERP Team: Strategic Oversight
The Central ERP Team ensures that the ERP system aligns with organizational goals, remains reliable, and supports site-level operations.
- Roles:
- ERP Manager: Oversees strategy, budgets, and cross-functional alignment.
- Functional Consultants: Configure modules (finance, production, logistics, etc.) and provide advanced support.
- Data Governance Specialists: Maintain data quality and consistency, focusing on master data management.
- Technical Support/Administrators: Manage system infrastructure, user roles, and integrations.
The Central Team defines policies, manages system-wide updates, and collaborates with site-level roles to ensure ERP adoption and effectiveness.
- Super Users: Site-Level Coordinators
Super Users bridge the gap between the Central ERP Team and the site-level Key Users. They oversee ERP-related activities locally and ensure alignment with corporate standards.
- Responsibilities:
- Train and mentor Key Users.
- Address site-specific ERP issues, escalating unresolved problems to the Central Team.
- Coordinate local ERP processes to maintain consistency across functional areas.
- Monitor feedback and performance metrics at the site level.
Super Users typically balance this role with their primary operational duties, making it vital to provide training and transparent workflows.
- Key Users: Functional Area Experts
Key Users are the frontline ERP advocates within their functional areas, such as production, logistics, or finance.
- Responsibilities:
- Train and support end users.
- Ensure operational continuity and process adherence.
- Collaborate with Super Users on recurring issues and system updates.
- Maintain data accuracy and resolve functional-level ERP issues.
Key Users often take on this role in addition to their primary responsibilities, such as department management or senior operational roles.
How Business Process Owners Fit In
The complete governance picture includes Business Process Owners (BPOs), who define and optimize end-to-end processes such as order-to-cash and procure-to-pay. However, one challenge I’ve encountered is the disconnect between process owners and ERP realities. When BPOs lack ERP literacy, they may design impractical processes within the system’s constraints, leading to inefficiencies or implementation roadblocks.
To address this, organizations can adopt a dual-role approach where BPOs serve as Functional Consultants in the Central ERP Team. This approach ensures that:
- Processes are realistic and implementable within the ERP framework.
- Costs are managed effectively by combining roles.
- Process changes are grounded in both business needs and ERP capabilities.
Example Workflows
Top-Down Workflow: Standardizing a Procurement Process
- Initiation: The Central ERP Team designs a new procurement process in collaboration with the Procurement Functional Consultant.
- Testing and Configuration: The process is configured in the ERP, tested, and reviewed by Super Users for site-specific feasibility.
- Training and Rollout: Super Users train Key Users, who oversee implementation with end users.
- Feedback and Monitoring: Super Users collect feedback and report any issues to the Central Team for adjustments.
Bottom-Up Workflow: Resolving a Production Planning Issue
- Identification: A Key User identifies discrepancies in production schedules at their site.
- Escalation to Super User: The Key User reports the issue, and the Super User attempts a local resolution.
- Escalation to Central Team: If unresolved, the Super User escalates the issue to the Central ERP Team.
- Solution Implementation: The Central Team collaborates with the Production Functional Consultant to resolve the issue, and the fix is rolled out with support from the Super User.
- Feedback Loop: Key Users implement the solution and monitor for recurring issues.
How to Keep the Governance Structure Alive
Continuous engagement and regular follow-ups are essential to ensure the structure remains effective over time. Here’s how to keep the governance model active:
- Build a Community of ERP Stakeholders
- Establish a formal ERP User Community that includes the Central Team, Super Users, and Key Users.
- Use platforms like Microsoft Teams or Slack to facilitate discussions, share updates, and provide resources.
- Organize regular virtual meetings to share best practices and address common challenges.
- Conduct Regular Follow-Ups
- Site-Level Follow-Ups:
- Super Users should hold weekly or biweekly meetings with Key Users to discuss issues and share updates.
- Super Users should provide monthly reports to the Central Team summarizing site-level ERP performance and challenges.
- Central-Level Follow-Ups:
- Monthly forums with Super Users to share updates, gather feedback, and discuss escalations.
- Quarterly strategy reviews with key stakeholders to align ERP usage with organizational goals.
- Schedule Site Audits and Training Refreshers
- Conduct annual or biannual site visits by the Central ERP Team to review ERP usage and address specific challenges.
- Provide ongoing training for Super Users and Key Users to ensure familiarity with new features and best practices.
- Monitor Performance Metrics
- Track metrics like issue resolution times, data accuracy, and user engagement to identify areas for improvement.
- Use surveys or focus groups to gather end users’ feedback on the ERP experience.
- Recognize and Reward Engagement
- Acknowledge standout Super Users or Key Users for their contributions.
- Provide opportunities for advanced training or career development for engaged participants.
Conclusion: Building a Sustainable ERP Governance Model
An ERP governance structure is only as strong as the effort to maintain it. Organizations can keep their governance framework alive and effective by establishing clear roles, creating a community of stakeholders, and implementing follow-ups and feedback mechanisms. A well-maintained structure ensures that ERP systems remain aligned with business needs, scalable for growth, and adaptable to future challenges.
Suppose your organization is preparing for a multi-site ERP rollout or looking to enhance an existing governance model. In that case, I can help design and implement a framework tailored to your needs. Contact me for a consultation and ensure your ERP system delivers lasting value.