Addressing Workaround Issues in Old ERP Systems
- Roger Pujol, CPIM, CSCP
- Mar 1
- 4 min read
Enterprise Resource Planning (ERP) systems are the backbone of many organizations, managing everything from finance to supply chain operations. But when an ERP system is seven years old or more, it often becomes a source of frustration rather than efficiency. High employee turnover, accumulated customizations, and workarounds can create tangled processes that slow down operations and increase risk. This post explores the challenges posed by aging ERP systems and how a "Back to Basics" approach can restore clarity and control.
Why Aging ERP Systems Become Problematic
ERP systems are designed to integrate business processes into a single platform. Over time, however, several factors contribute to their decline in effectiveness:
Employee Turnover: When experienced staff leave, their knowledge of how the ERP system was customized or how workarounds function often leaves with them. New employees may struggle to understand these undocumented processes.
Unnecessary Customizations: To meet evolving business needs, companies often add custom features. Over the years, these can pile up, many no longer relevant or supported by the vendor.
Workarounds and Shadow Systems: When the ERP system cannot handle certain tasks efficiently, employees create workarounds using tools like MS Excel or MS Access. These shadow systems operate outside the ERP, causing data inconsistencies and process gaps.
These issues lead to broken processes, unused features, and increased operational risk.
The Impact of Employee Turnover on ERP Effectiveness
High turnover rates amplify ERP challenges. When employees leave, they take with them critical knowledge about:
How customizations were implemented
Why certain workarounds exist
Which features are actually used versus those that are obsolete
New hires often receive minimal training on these nuances. They may unknowingly bypass standard procedures or create new workarounds, further complicating the system. This cycle results in:
Increased errors due to misunderstood processes
Longer onboarding times as new employees learn undocumented practices
Reduced system adoption as users lose confidence in the ERP’s reliability
For example, a manufacturing company with a 30% annual turnover found that each new employee spent weeks figuring out how to navigate custom reports and shadow spreadsheets. This delay affected production scheduling and inventory accuracy.
How Unnecessary Customizations Create Long-Term Problems
Customizations can make an ERP system fit unique business needs, but over-customizing creates several issues:
Maintenance Challenges: Custom code often requires specialized knowledge. When original developers leave, maintaining these features becomes difficult.
Upgrade Barriers: Vendors release updates to improve security and functionality. Heavy customizations can block or complicate upgrades, leaving the system outdated.
Performance Issues: Excessive customizations can slow down system response times and increase downtime.
A retail company that customized its ERP extensively to handle unique pricing rules found that after five years, upgrades were impossible without a costly rewrite. This forced them to continue using an outdated system vulnerable to security risks.
The Hidden Costs of Workarounds and Shadow Systems
When ERP systems fall short, employees turn to external tools like MS Excel and MS Access to fill gaps. These shadow systems create several risks:
Data Silos: Information stored outside the ERP is not visible to all stakeholders, leading to inconsistent decision-making.
Manual Data Entry: Transferring data between systems increases the chance of errors.
Lack of Audit Trails: Shadow systems often lack proper controls, making compliance difficult.
For instance, a logistics firm discovered that 40% of its inventory data was managed in Excel spreadsheets separate from the ERP. This caused frequent stock discrepancies and delayed order fulfillment.
Champion Business Solutions’ Back to Basics Program
To address these challenges, Champion Business Solutions, LLC offers a "Back to Basics" program. This approach involves:
Comprehensive ERP Evaluation: Every process, customization, and workaround is reviewed to identify inefficiencies and unsupported features.
Process Simplification: Removing unnecessary customizations and replacing workarounds with standard ERP functionality where possible.
Shadow System Elimination: Integrating data from external tools back into the ERP or replacing them with supported modules.
User Training and Documentation: Ensuring new and existing employees understand the streamlined system and processes.
This program helps organizations regain control over their ERP systems, reduce operational risks, and improve user confidence.
Practical Steps to Manage Aging ERP Systems
Organizations can take several actions to manage aging ERP systems effectively:
Conduct Regular System Audits: Review customizations and workflows annually to identify obsolete or unsupported elements.
Document Processes Thoroughly: Maintain clear documentation of customizations and workarounds to ease employee transitions.
Invest in User Training: Provide ongoing training to ensure employees understand system capabilities and changes.
Limit New Customizations: Evaluate the necessity of each customization carefully before implementation.
Plan for Upgrades: Keep the system up to date to benefit from vendor improvements and security patches.
By following these steps, companies can reduce the chaos caused by aging ERP systems and employee turnover.
Real-World Example of ERP Simplification Success
A mid-sized distributor experienced frequent order-processing errors due to a complex ERP system with numerous custom modules and shadow spreadsheets. After partnering with Champion Business Solutions for the Back-to-Basics program, they:
Removed 60% of customizations that were no longer needed
Replaced Excel-based inventory tracking with ERP-integrated tools
Trained staff on the simplified system
Within six months, order accuracy improved by 25%, and employee onboarding time dropped by 40%. This example shows how simplifying an aging ERP system can deliver measurable benefits.
Roger Pujol, CPIM, CSCP, the founder of Champion Business Solutions, LLC, is an ERP consultant & advisor specializing in ERP Business software for the manufacturing and distribution industries. He shares insights and experiences on assisting small and medium-sized businesses (SMBs) to enhance their operations.
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