Category: Business Advisory

  • Your ERP Is Live. But Is the Business Working Differently? 

    Your ERP Is Live. But Is the Business Working Differently? 

    ERP Success Is Not Go-Live. It Is Adoption.

    ERP implementation does not create value when the system goes live. It creates value when employees consistently use new processes to make better decisions, reduce errors and improve business performance.

    Many ERP programmes are managed primarily as technology deployments.

    The organisation configures the system, migrates data, tests functionality and trains employees before launch. Once the platform becomes operational, the implementation is declared successful.

    However, technical go-live and business adoption are not the same outcome.

    Employees may complete training and still return to spreadsheets, offline approvals and familiar workarounds. Managers may receive new dashboards but continue making decisions using old reports. Different locations may apply the same process differently, while poor usage steadily degrades data quality.

    Key Insight: A system can be operational without the organisation being transformed.

    Closing this gap requires treating ERP adoption as a continuous business process rather than a one-time implementation event.

    Phase 1: Prepare for Adoption

    ERP preparation should begin with the work that the organisation expects to change, not with a catalogue of system features.

    For every critical workflow, leaders should identify:

    • The employees and managers affected
    • What they must do differently
    • Which existing behaviours must stop
    • The decisions the new process should improve
    • The operational result expected
    • How successful adoption will be measured

    This prevents the organisation from confusing training completion with implementation success.

    Stakeholders should also be grouped according to their roles, locations and responsibilities.

    A finance employee responsible for month-end close requires different preparation from a procurement manager approving suppliers or a plant employee recording production activity.

    The objective is not to teach everyone everything.

    The objective is to prepare each employee group to execute its specific role in the new operating process correctly and consistently.

    Phase 2: Enable Role-Based Execution

    Employees experience an ERP through tasks, not through modules.

    Learning should therefore be built around real workflows: what employees need to do, what information they require, what decisions they must make and what happens when the process is executed incorrectly.

    Formal training should be reinforced by practical, role-specific support materials that employees can use while performing actual work.

    This may include:

    • Concise process guides
    • Short demonstrations
    • Searchable answers to common questions
    • Approved examples drawn from the working environment

    Support should also reflect how different employee groups operate.

    Office-based teams may need help through collaboration platforms. Field and plant employees may require mobile access or short audio-visual guides. Managers may benefit from one-page references that reinforce correct processes during team discussions.

    Adoption Principle: Reduce the distance between confusion and correct action.

    When employees must search through lengthy manuals or wait for support from the project team, they are more likely to improvise or return to familiar methods.

    Phase 3: Stabilise After Go-Live

    Go-live is when adoption risk becomes visible, not when adoption risk disappears.

    During the first weeks following implementation, employees are most likely to encounter unfamiliar exceptions, misunderstand responsibilities or revert to old habits when deadlines become demanding.

    The organisation should monitor more than system access statistics and course completion rates.

    Useful indicators include:

    • Correct use of priority workflows
    • Recurring process errors
    • Frequency of manual workarounds
    • Support requests by role or location
    • Time required to complete transactions
    • Use of new reports and approval workflows

    These indicators should guide targeted intervention.

    If a particular team repeatedly struggles with a critical workflow, another company-wide communication is unlikely to solve the problem.

    That team may require clearer explanation, practical demonstrations, process adjustments or direct managerial support.

    This distinction is important because not every adoption challenge is a learning challenge.

    Some problems are caused by poorly designed processes, unclear decision rights, unsuitable system configuration or incomplete data.

    Effective monitoring helps leaders identify the actual barrier rather than automatically prescribing more training.

    Phase 4: Sustain and Improve

    ERP adoption must continue long after the initial disruption has passed.

    Employees need reinforcement until new workflows become the normal way of working.

    Timely reminders, refresher learning, manager-led reviews and rapid clarification of recurring issues can prevent temporary workarounds from becoming permanent operating practices.

    Adoption evidence should also inform future implementation waves.

    When introducing new modules, upgrades or locations, organisations should already understand:

    • Which employee groups experienced the greatest challenges
    • Which workflows generated the most errors
    • Which support formats employees used most often
    • Which managerial interventions improved adoption
    • Where system or process design required correction

    This creates an internal capability for managing continuous digital transformation rather than restarting adoption planning every time a new implementation begins.

    The Real Measure of ERP Success

    ERP value is not created by the number of employees trained, communications issued or modules launched.

    It is created by what the organisation can now do faster, more accurately and with better information.

    The Real Test: Success is measured by sustained behavioural change and business outcomes, not by system activation.

    Executives should therefore ask a more demanding question:

    If implementation support ended tomorrow, would employees continue using the new workflows correctly, or would the organisation quietly return to its old way of working?

    The answer will reveal whether the organisation has merely installed an ERP system or truly adopted a new operating model.

    J
    John
    Business Advisory
    H. Pierson Associates Limited
  • Acquire Capability, Not Complexity 

    Acquire Capability, Not Complexity 

    Why the Best Acquisitions Start with Capability, Not the Target

    For Nigerian companies pursuing acquisitions, the strongest transactions are not necessarily the largest. The most effective deals secure a capability the business needs and convert it into measurable competitive advantage.

    Acquisitions can provide immediate access to technology, distribution networks, licences, infrastructure, specialist talent or new markets that could take years to develop internally.

    However, speed does not automatically create value. A company can complete a transaction quickly and then spend years managing an asset that never delivers the expected strategic benefit.

    Key Insight: The critical question is changing from “What company can we buy?” to “What capability must we acquire to strengthen our competitive position?”

    That distinction separates a disciplined acquisition strategy from corporate accumulation.

    Start with the Capability, Not the Target

    Acquisition discussions often begin when an attractive company becomes available. Management then develops a rationale for buying it.

    This reverses the proper sequence.

    An available target can quickly generate its own momentum. Revenue forecasts become optimistic, synergies expand and risks appear manageable because decision-makers become attached to the opportunity.

    Instead, the buyer should first identify the constraint limiting its next stage of growth.

    • Technology
    • Production capacity
    • Market access
    • Intellectual property
    • Specialist talent
    • Customer relationships
    • Operating infrastructure

    The answer must be specific.

    “We need digital capability” is too broad.

    “We need an established digital platform that can reduce product-launch time by two years and provide access to a defined customer segment” is a clear and investable acquisition thesis.

    Only after defining the required capability should the company identify and evaluate potential targets.

    The best target may not be the largest or most visible business. It is the organisation whose capabilities, economics and operating model most effectively address the buyer’s strategic need.

    Prove That Acquisition Is the Right Route

    A capability gap does not automatically justify an acquisition.

    The same capability may be obtained through internal investment, strategic partnerships, licensing arrangements, joint ventures or minority investments.

    While full ownership offers greater control, it also creates the highest capital commitment and integration risk.

    Boards should assess alternatives against five key factors:

    • Speed of access
    • Capital required
    • Degree of control needed
    • Execution and integration complexity
    • Realistic value creation potential
    Board Test: An acquisition is justified when ownership materially improves speed, control, economics or competitive protection.

    It becomes much harder to justify when a buyer pays a control premium for a capability that could have been accessed through a lower-risk arrangement.

    For cross-border acquisitions, the analysis must also account for currency exposure, taxation, regulatory approvals and the practicality of operating the acquired capability within the Nigerian market.

    The question is not simply whether the company can acquire the asset. It is whether the company can own and operate that asset more effectively than alternative routes would allow.

    Value What the Buyer Can Actually Capture

    The target’s standalone value is not the same as its value to a specific buyer.

    Boards must separate three distinct value components:

    • What the target can generate independently
    • The additional value expected from combining the businesses
    • The proportion of that value the buyer can realistically capture

    This distinction matters because synergies are often overstated.

    Revenue benefits may depend on customer behaviour changing. Cost savings may require difficult operational decisions. Technology advantages can be delayed by incompatible systems. Key employees may leave after completion of the transaction.

    As a result, due diligence should do far more than verify financial information.

    It should rigorously test whether the acquisition thesis remains valid after examining:

    • Earnings quality
    • Liabilities and obligations
    • Customer concentration
    • Technology architecture
    • Governance practices
    • Regulatory considerations
    • Operational dependencies

    Integration planning should begin before the acquisition is signed.

    The buyer should already understand which capabilities must be protected, which leaders are critical to success, what should be integrated, who owns the expected benefits and how outcomes will be measured.

    Five Questions Every Board Should Answer First

    Before authorising a target search, the Board and executive team should answer the following questions:

    1. What exact capability do we need?
    2. Why must we obtain it now?
    3. Why is buying superior to building or partnering?
    4. What measurable value must ownership create?
    5. What price, risk or condition would make us walk away?

    These answers become the acquisition mandate.

    Every target, valuation assumption and transaction structure should be tested against it.

    Without this discipline, organisations risk allowing an available target or persuasive seller to determine their investment logic.

    Leadership Principle: A strong acquisition strategy defines the capability required before identifying the company to buy.

    The Decision Before the Deal

    Acquisitions can compress years of capability development into a single transaction.

    They can also introduce complexity, consume executive attention and destroy shareholder value.

    The difference often begins long before negotiation or closing.

    It begins with the quality of the acquisition thesis.

    If no company were currently for sale, could we still state precisely what capability we need, why we cannot build it in time and what measurable value ownership must create?

    If the answer is no, the organisation may not yet be ready to acquire.

    It may only be ready to be persuaded.

    J
    John
    Business Advisory
    H. Pierson Associates Limited
  • When Strategy Execution Slows, Look Up—Not Down 

    When Strategy Execution Slows, Look Up—Not Down 

    Why More KPIs, Meetings and Pressure May Be Treating the Symptoms Rather Than the Cause

    When execution slows, many organisations respond by increasing control mechanisms. Yet the real issue may not be effort, capability or commitment. It may be the leadership system itself.

    When execution slows, most organisations respond to what they can see.

    Targets are tightened. Reporting increases. New KPIs are introduced. More meetings enter the calendar. Managers are placed under greater pressure.

    Key Insight: The organisation may not simply have a performance problem. It may have a system that produces poor performance.

    Growth Changes the Execution Challenge

    As organisations expand into new markets, products, locations or business models, execution becomes increasingly cross-functional.

    Decisions that once belonged to one function may now affect operations, finance, technology, risk, people and customer experience simultaneously.

    When the CEO Becomes the Operating System

    One of the clearest warning signs is the volume of issues requiring the CEO’s personal intervention.

    • Several executives believe they own the same decision.
    • A strategic priority crosses multiple functions, but no one owns the complete outcome.
    • Functions meet their respective targets while weakening the enterprise result.
    • Cross-functional disagreements have no defined resolution mechanism.
    • Leaders are unclear about what they can decide without further approval.
    J
    John
    Business Advisory
    H. Pierson Associates Limited