(Or: Don’t force the software to fit your bad habits.)

ERP and other enterprise software ship with industry-standard processes for a reason. Vendors and platform teams have observed thousands of implementations and baked best practices into their products. Choosing to adopt those standards — or consciously departing from them — is a strategic decision. Treating it as an ideological one (“this is how we’ve always done it”) is where trouble starts.

Hard fact: ERP projects have a high failure rate when organizations over-customize or fail to align processes to the target system.

Below I explain why the standard is the standard, share two real-world cautionary examples, and give a short, practical playbook for how to adopt a new standard safely — plus the risks and opportunities you should be ready for.

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Two cautionary examples

Haribo — mapping workflows went wrong
Haribo’s SAP S/4HANA migration exposed a painful truth: insufficient mapping of legacy processes to the new system led to inventory tracking failures and product shortages. The immediate business result was material sales disruption for a core product. This was not a technical bug in isolation — it was a failure to reconcile shop-floor reality with the ERP’s process model.

Target Canada — compressed timelines + new inventory system
Target’s ill-fated Canadian expansion is a textbook case where an aggressive go-live timetable and unready supply-chain systems produced empty shelves, wrong inventory counts and severe reputational damage. Analysts point to new inventory software, rushed cutover and data/operational misalignment as central causes. The lesson: implementing a new standard process at scale without adequate testing and paced rollout creates catastrophic operational risk.

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Why the “standard” matters

1. Embedded domain knowledge. Vendors encode patterns observed across many customers — they are not random. Using the standard leverages that collective learning.
2. Lower TCO and faster upgrades. Less customization → fewer integration points → easier upgrades and lower long-term cost.
3. Predictable behavior. Standardized processes are easier to test, monitor and govern at scale.

But standards are not gospel. You must evaluate where your business has a genuine, defensible reason to deviate — and where deviation is just legacy inertia.

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When changing the standard makes sense (and when it doesn’t)

Change the standard if:

• You have a documented, recurring competitive practice that genuinely creates measurable differentiation (e.g., unique pricing model, proprietary manufacturing step).
• You can quantify the expected incremental margin or strategic benefit and it clearly outweighs the customization/maintenance cost.
• You have the resources and governance to carry forward custom code and test it across upgrades.

Don’t change the standard if:

• The reason is “this is how we’ve always done it.”
• The benefit is marginal and hard to measure.
• You can achieve equivalently with minor process redesign or a configuration (not customization).

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What it takes to adopt a new standard — the execution checklist

1. Executive decision & trade-off mandate
   Senior leadership signs a clear “fit-to-standard” decision: we adopt vendor best practice except for pre-approved deltas. Document the business case for any deltas.
2. Fit-to-Standard workshops (Explore / sandbox)
   Run structured sessions where the vendor shows the preconfigured process in a sandbox; identify gaps by capability (not by habit). Capture deltas explicitly.
3. Reference-class benchmarking
   Compare your process metrics against industry peers to validate whether your way really delivers superior outcomes.
4. Delta-governance & gating
   Only approved deltas proceed to build; each delta must include ROI, test plans, upgrade impact and a 3-year maintenance estimate.
5. Data & master-data cleaning
   Heavy investment up front in data quality and master-data alignment (the most frequent root cause of go-live issues).
6. Pilot → scale approach
   Pilot the standard (and any deltas) in representative sites (top & bottom performers) and validate operationally for a full business cycle before broad rollout.
7. Change management, training, and visual work instructions
   The people side matters. Simple, local language instructions and on-the-job training reduce “workarounds” that reintroduce legacy behavior.
8. Smoke tests and rollback plans
   Define success/failure criteria and automated smoke tests. Have rollback and fallback processes in place for critical customer-impact flows.
9. Upgrade & lifecycle plan
   Treat customization as a product that must be supported through upgrades; budget and ownership must be explicit.

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Risks (if you force the software to fit old ways)

• Integration fragility — custom code breaks more easily and increases TCO.
• Upgrade paralysis — future upgrades become expensive or impossible without full rework.
• Operational disruption — inventory, order-to-cash and manufacturing flows can fail, harming revenue. (See Haribo / Target.)
• Hidden governance costs — ongoing patches, vendor/sii disputes, and shadow IT.

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Opportunities (if you adopt the standard sensibly)

• Faster time to value — fewer dev iterations, quicker stabilization.
• Lower long-term cost of ownership — predictable upgrades, smaller support footprint.
• Easier scaling — standardized operations are repeatable across sites/regions.
• Better analytics & transparency — consistent processes generate reliable KPIs.

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Practical example: a recommended mini-roadmap (3 high-level milestones)

1. Decision & Discovery (4–6 weeks) — Fit-to-Standard workshops, select pilots, map deltas and run ROI tests.
2. Pilot & Validate (8–12 weeks) — Deploy standard + approved deltas in 2 representative sites (one top, one bottom), test hard for a full operating period.
3. Scale & Govern (12–24 weeks) — staged rollout, training, governance, upgrade plan, and metrics dashboard.

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A final, blunt thought

Industry-standard processes are not arbitrary. They’re codified experience. That doesn’t mean never customize — but it does mean you must choose customization deliberately, with full transparency on cost, upgrade-risk and operational testing. Too many high-profile failures (Haribo, Target Canada and others) began with the same human error: treating process as identity rather than as a lever to improve.

Want to talk through a concrete decision framework you can apply to your ERP or operating-model program? I can help you run a focused fit-to-standard workshop, identify defensible deltas, and design a pilot that protects the business while unlocking faster value. Connect with me on LinkedIn or by email: diethard.engel @ de-mcs.de.

J.C. Penney’s $1B loss under a celebrated CEO wasn’t about strategy—it was about overconfidence. The Dunning–Kruger Effect shows up in change management more often than we admit: leaders underestimate complexity, teams assume they’ll “figure it out,” and culture gets sidelined.

In my new article, I explore how this bias derails transformations—and what to do instead.

Another Cautionary Tale: The Dunning–Kruger Effect in Change Management — When Overconfidence Derails Transformation

Consider J.C. Penney’s 2012–13 transformation under CEO Ron Johnson—a proven executive from Apple and Target. He confidently rolled out “fair and square” pricing and drastically redesigned stores. But he underestimated how deeply customers valued coupons and markdowns. He moved fast, but without testing or aligning with the brand’s culture. Within 14 months, revenue had fallen 25%, the company lost nearly $1 billion, and thousands of jobs were cut.

This dismissal of core stakeholders and cultural dynamics is a textbook case of the Dunning-Kruger Effect in transformation initiatives.

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What Is the Dunning–Kruger Effect?

At its core, it’s a cognitive bias: those with limited knowledge often overestimate their competence, while experts tend to underestimate it.

In transformation contexts:

• Leaders may assume change is simple: “just tweak processes,” or “everyone will adapt.”
• Teams may overload under the assumption that “we’ll figure it out.”

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Why It Matters in Change Management

Change is complex, high-stakes, and fraught with resistance.

The Dunning–Kruger Effect manifests as:

• Ignoring stakeholder pushback
• Rushing without embedding governance or testing
• Overconfidence in “patch-on-the-fly” solutions

And the consequences? Delayed returns, broken morale, failed programs.

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A Framework to Mitigate It

1. Diagnose before you decide—use structured interviews, quick diagnostic sprints to ground assumptions.
2. Surface hidden risks—on culture, governance, stakeholder alignment.
3. Bring in experienced leadership early—not just internal availability.
4. Test early, iterate fast—pilot first, scale later.
5. Stay humble—be prepared to course correct mid-transformation.

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Why Familiarity Matters

Transformations often fail not for lack of intent, but because they’re treated like “change on the side.” The Dunning–Kruger trap lies in ignoring the hidden layers—culture, governance, resistance, and BAU alignment.

Skill, experience, and discipline are not optional. Without them, transformation becomes a mirage.

Transformation doesn’t fail because of strategy. It fails because the business can’t execute change while keeping day-to-day operations running.

I’ve seen this pattern again and again:

• Management is already at 120% capacity.
• A major transformation or integration lands on top.
• Leadership is expected to run BAU and lead the program. The result? Delays, firefighting, stalled projects, missed synergies — and, most critically, lost business performance.

That’s why I built the Operate-while-Transform capacity model. It protects BAU while accelerating transformation.

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The Core Idea

Business-as-usual must not suffer because of transformation. Shareholders expect performance and change. To deliver both, we need a deliberate capacity model that frees bandwidth for transformation without risking revenue, customers, or employees.

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How it Works

1. Capacity Scan Map management workload. Where is leadership consumed by routine? Where is true change capability hidden?

2. Offload Routine Work Shift recurring or transactional activities (reporting, approvals, admin) downward or outward. Create air cover for managers.

3. Sharpen Decision Forums Redesign meeting cadence and governance so leaders spend time on decisions and priorities, not updates or firefighting.

4. External Program Muscle Bring in experienced transformation leaders to drive structure, speed, and orchestration. Execution discipline comes from outside, not from overstretched insiders.

5. BAU Health Check Track operational KPIs (OTD, revenue, customer metrics) in parallel with transformation KPIs. If BAU slips, you re-balance early.

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What It Takes

Even the best-designed capacity model fails without top management’s true commitment.

• Leaders must prioritize change alongside BAU, not treat it as optional.
• They must protect time and attention, resisting the temptation to drown the program in unnecessary meetings, reviews, or politics.
• They must walk the talk: if management drags its feet, employees will too.

In short: Operate-while-Transform works only if leaders want it to work.

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Why It Works

• Speed: Freed-up capacity accelerates execution.
• Focus: Leaders can actually lead transformation instead of juggling tasks.
• Security: BAU KPIs stay in view — ensuring no loss of revenue or customers.
• ROI: Faster execution means faster synergies, earlier cash impact, and higher deal value.

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The Payoff

When you protect BAU and accelerate transformation, value lands earlier:

• Synergies realized faster
• Costs reduced earlier
• Growth captured without losing customers
• Employees stay engaged — because daily work doesn’t collapse under the weight of change

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💡 Operate-while-Transform isn’t about working harder. It’s about designing capacity deliberately so transformation can succeed without breaking the business you’re transforming.

The realization has set in: change is necessary. Markets evolve, customer expectations shift, competitive pressure grows — and standing still is not an option.

But here’s the challenge: the day-to-day business doesn’t pause just because transformation is required. Operations, customers, and financial commitments remain the top priority. And in most organizations, people are already stretched thin. Spare capacity for a complex transformation program is rare.

The Availability Trap

When internal resources become “available,” the instinct is often to assign them to transformation initiatives. But ask yourself:

• Do they have the competence and experience to design, align, and execute a complex program?
• Do they have the standing within the organization to make tough decisions stick?

Because one thing is clear: availability is not a skill set.

How to Free Up Resources

Some companies try to create bandwidth by shifting more routine tasks away from management, creating breathing room for leaders to focus on transformation. While this helps, it is often not enough. Transformation requires dedicated expertise, structure, and focus — qualities that are hard to maintain when you are simultaneously running the daily business.

The Role of External Support

This is where external support adds real value. Experienced transformation leaders bring:

• Clarity in framing and prioritizing initiatives
• Focus on execution, avoiding detours and delays
• Structure to align teams and keep programs on track
• Delivery certainty, based on repetition and proven methods

Even more important: external experts accelerate implementation. And speed matters — because the earlier synergies, cost savings, and growth effects are realized, the faster the transformation pays for itself. In fact, this acceleration is the ROI of external support.

Final Thought

Transformation is not about choosing between business-as-usual and change. It’s about ensuring both run in parallel — the daily business without disruption, and the transformation with the focus it requires. With the right mix of internal commitment and external expertise, companies can achieve both.

👉 If this resonates and you’d like to explore how to balance transformation with daily business in your organization, feel free to connect with me.

It’s rarely the big strategic questions. Much more often, it’s the small things:

·       Functional interfaces that don’t align
·       Missing pieces of information
·       A lack of structure in execution or customer communication

Surprisingly, management is usually aware of these issues. And yet, decisive action doesn’t follow. That’s where value gets lost.

The difference-maker? Moving from awareness to implementation.

🔍 My role in many projects is exactly that:

·       Identify the real root cause
·       Reconcile countermeasures across functions
·       Align resources
·       Drive swift, focused execution

Because at the end of the day:

👉 Awareness is good — but implementation is king.

If this resonates, and you’d like to exchange perspectives, I’m always happy to connect and discuss how to capture value in your context. Curious how this plays out in your business. I am looking forward to your comments.

Before I help a client launch a transformation, I ask these five questions.
If we don’t have clear answers, we don’t start. It’s that simple.

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1. What’s the real problem we’re solving?

Be honest. Is it a cost issue? A customer issue? A culture issue?
Transformation without diagnosis is theater.

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2. What does success look like — and who defines it?

Is it EBIT margin? Resilience? A new org model?
And whose expectations shape that?

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3. Who’s sponsoring the program — and how visible are they?

Without senior ownership, no transformation survives long.
Is leadership ready to lead from the front?

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4. What internal resources are available — and what’s missing?

You can’t staff transformation with whoever is free.
Top people make the difference.
My Rule #4: Availability is not a skill set.

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5. How will we handle all the “other stuff” we’ll discover?

No plan survives contact with reality. You’ll find other issues.
Have a system for capturing and sequencing them — or they’ll derail your program.

When You Need Impact, Not a Consultant Army

Not every transformation needs a slide-heavy consulting team. Sometimes you need a pragmatic partner who moves things forward with you. That’s what “transformation on demand” is about.

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It works when:

• You have a program but no structure
• You need momentum without increasing internal workload
• You want senior impact — not junior staffing

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It brings:

• Clarity on scope, timeline and resources
• Structured check-ins
• Hands-on support with just enough documentation
• An external view, free from internal politics

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The value?

You get:

• Faster progress
• Focused implementation
• Better decisions — with less internal distraction

Transformation isn’t about doing more — it’s about doing what matters, in the right order, and with the right energy.

💡 When the order book slows, inefficiencies show. Economic headwinds are exposing the cracks—and let’s be honest, some of them have been there for a while:

🔸 Strategic initiatives that stalled mid-flight
🔸 Integration benefits that never materialized
🔸 Operating costs that feel heavier by the day

CFOs know: The math doesn’t lie. Private Equity sees value erosion on the horizon.

Behind closed doors, leadership teams are asking the right questions:
🔍 Where are the true levers to improve margin and cash flow?
🏭 Which sites, SBUs, or teams are underperforming?
👤 Who’s really driving results—and who’s been coasting?

You want to act—but don’t have the bandwidth or the right transformation lead to drive tough, structured change. Not someone with a playbook. Someone who understands the real business levers.

✅ Yes, transformation comes at a cost.
❌ But not acting comes at a higher one: Eroding EBITDA. Delayed exits. Difficult conversations with shareholders.

👉 That’s where I come in. I support CFOs and PE-backed leadership teams in engineering-heavy businesses by:

✔️ Analyzing true business needs and performance—by SBU, region, and individual;
✔️ Designing and implementing strategic change programs with operational and financial impact;
✔️ Rethinking operating models: portfolio, footprint, org structure, headcount, interfaces, and governance;
✔️ Building accountability and execution discipline—faster than internal teams often can.

🎯 The result? A leaner, sharper, performance-driven business—ready for what’s next.

Every transformation starts with urgency and good intentions. But success? That takes structure, clarity, and consistent leadership. Here’s what truly matters when setting up your transformation program:

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1. Start with alignment at the top

Transformation starts with clarity — not just motion.

Before launching workstreams or assigning tasks, hold a kick-off workshop with the C-level and key leaders. This is where momentum begins:

• Align on the vision, timeline, and goals
• Identify risks, challenges, and opportunities
• Map initial governance, key roles, and resource needs
• Create shared understanding — and shared commitment

Without this foundation, transformation efforts drift or stall before they even begin.

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2. Resource the program with the best people

My Rule #4: Resource your program with top people
𝘈𝘷𝘢𝘪𝘭𝘢𝘣𝘪𝘭𝘪𝘵𝘺 𝘪𝘴 𝘯𝘰𝘵 𝘢 𝘴𝘬𝘪𝘭𝘭 𝘴𝘦𝘵. Transformation is not business as usual — it’s a high-stakes, high-visibility program that demands experience and credibility.

Whether internal or external, transformation leaders must be:

• Strategically minded, but operationally grounded
• Cross-functional in thinking and respected across levels
• Clear in communication and decisive in delivery

If that person is not already in your organization, bring them in.

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3. Narrow the focus — then stay focused

Successful transformation is about doing less, but better.
Trying to fix everything at once leads to overload, frustration, and poor execution.

• Prioritize 3–5 focus areas
• Phase initiatives into realistic timelines
• Set milestones that allow you to review and adapt

It’s better to deliver one major improvement than to manage ten disconnected projects.

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4. Define roles, governance, and feedback loops

People don’t resist change — they resist confusion.

Build a program structure that enables decision-making and accountability:

• Who owns each workstream?
• What gets escalated, and where?
• How do we measure progress and act on it?

Establish regular reviews, steer proactively, and course-correct early.

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5. Actively shape the culture you need

No transformation sticks without cultural alignment.

Culture isn’t just “how we do things” — it’s what gets rewarded, what gets ignored, and what behaviors leadership tolerates.

To make culture part of your transformation:

• Identify what drives your current culture (habits, legacy, leadership styles)
• Define a target culture aligned with your strategic goals
• Run it by employees and listen to feedback — you’ll gain trust and valuable insight
• Lead by example: behaviors at the top set the tone
• And most importantly: take your time
  Culture change takes quarters — not weeks. But it’s the multiplier that makes everything else stick.

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6. Communicate, communicate, communicate

Even the best strategy fails if people don’t know what’s happening.
Communicate progress regularly. Celebrate quick wins. Address concerns. And be visible.

The best transformation leaders don’t just manage — they narrate the journey.

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If you’re kicking off a transformation, don’t just act — lead.
Build clarity, earn trust, and create a structure where change becomes reality.