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How Business Management Software Shapes Workplace Culture

Every organization wants a good workplace culture, and we often assume that good people are the key to getting it. Colleagues who can communicate well work better in teams. Those who share and report data can lend clarity to projects and help define roles within them.

But what happens when “good people” are slowed down, confused, or mistaken? It happens all the time. More often than not, software is at the root of the problem.

We don’t always suspect software to cause issues in workplace culture. Or do we? Chances are, people within any organization are constantly frustrated by the inability of the management software they use to help them do their jobs. And we tend to take that frustration for granted.

People point fingers at people, not software. When data goes missing, when errors appear in reports, or when someone misses a project deadline, we assume they haven’t done their job well.

Here’s the truth: bad software can cause those problems. Good software can solve them.

Why Positive Workplace Culture Matters

As much as we want to believe happy hours, holiday parties, or breakroom birthday cakes are an integral part of office culture, they merely support it. Proper communication methods, coupled with access to information, are how workplace culture actually gets created.

Workplace Culture

Increasingly, we use software to manage the ways we communicate and solve problems. From even the most commonly used communications like scheduling meetings to assigning tasks, long gone are the days when an organization relies on paper, phone calls, and faxes.

According to an article by the Harvard Business Review, “550 million workdays are lost each year due to stress on the job.” Drawing on studies by the Queens School of Business and the Gallup Organization, the article further notes:

“Disengaged workers had 37% higher absenteeism, 49% more accidents, and 60% more errors and defects. In organizations with low employee engagement scores, they experienced 18% lower productivity, 16% lower profitability, 37% lower job growth, and 65% lower share price over time. Importantly, businesses with highly engaged employees enjoyed 100% more job applications.”

Ouch.

Those statistics should matter to anyone who believes their organization should be productive and profitable. That’s a nice way of saying they should matter to everyone.

Software Defines Workplace Culture. For Better or Worse.

The reason software defines workplace culture is simple: software defines your process.

Here are three common examples that prove it:

  1. The Hiring Process.  As I recruit my best candidates and choose my hires, I want to make sure I onboard them seamlessly into my company. That means I’ll need a way to share our documented values, beliefs, and practices from the moment of hire. When I do that, I immerse my future employees in organizational culture before they even walk in the door for their first day on the job. 
  2. Project Management. What about when I’m putting people on a new project? I need a way of assigning roles, tasks, and milestones. Then I need a way of tracking progress, where I can easily see what work has been completed, make changes if necessary, and communicate instantly to any or all team members. If I don’t have an accurate, instant tracking method, I can count on being confused about project status. I shouldn’t be surprised, then, when work isn’t completed on time.
  3. Data Management. If my employees are double-entering any company data, they risk making mistakes. Because they’re human. Errors are understandable, but that doesn’t make them acceptable. The only way I can truly avoid errors, in this context, is to eliminate the process that causes them.

Good Management Software = Good Culture.

Software plays a critical role in all three of the scenarios above. But is the formula really so simple?

final puzzle piece for all in one business management software

It can be. The right management software helps you centralize and share data. If the information is easily accessible across your entire organization, your employees won’t waste time searching for documents.

That means less frustration, more productivity, and better teamwork. With streamlined information flow, there’s no one to blame when things get lost— because they don’t get lost.

Of course, it’s possible to have no software to attempt these processes. In some cases, that might be better than using the wrong software. But for a business in this era, it’s not possible to truly streamline your processes and to meet modern demands and standards with paper receipts and ledgers.

Simply, you’ll never be competitive without software-driven process management.

How to Audit Workplace Problems Caused by Software

If you’re concerned that you have a workplace culture issue that’s being caused by your software, you’re not alone. Employees bang their head on computer screens all the time because their software is failing them.

You may never hear about it, though, because you can’t simply have a conversation with your software and make it better. For this reason, many software users complain in silence, assuming that nothing will change.

Here are some simple steps you can take to find out whether (and where) software is causing process problems:

Step 1- Take Stock of Your Software. Before you do any outreach, you’ll need to tally the different software products you use and categorize their purpose.

Keep in mind that having a collection of management software products might be the cause of your culture and process issues. Separation creates silos, resulting in a jumble of applications that manage different divisions.

Too often, those applications don’t talk to each other. Or perhaps they did once, but arbitrary updates cause bugs that shut down communication.

A single management system, whose purpose is to bridge the communication divide between departments, is preferable to patchwork software. With one system that everyone can use, you’ll be able to connect your entire organization.

erp software tablet

Step 2- Survey Your Employees. Your workforce will be the best source of both positive and negative feedback about the software they use. Once you’ve identified your software list, create an internal survey. Anonymous surveys may yield more honest responses, but you’ll know what works best for your culture.

Make sure your survey contains questions that will generate the kind of feedback you’re looking for. You’ll need to ask about ease of use, time spent on processes, and perceived benefits and detriments of each application.

Step 3- Evaluate Feedback. Listen to what people are saying. If you find a high enough volume of negative feedback related to any one software product, it may be safe to assume that you’re only seeing the tip of the frustration iceberg.

At this point, you should speak with managers directly. Ask them to walk you through some of the processes they feel could be improved. You can draw some telling conclusions from an in-person evaluation.

Step 4- Plan for Improvement. Changing a product or process is one of the most difficult decisions organizations face.

It’s important to remember that this kind of change is meant for collaboration, connectivity, and more efficient work. If you arrive at the decision honestly, after proper evaluation, you should be excited by the possibility of leaving inefficiency behind.

Looking for Improvement

Your improvement plan will include either assembling a team or tasking department managers to replace the software that’s slowing you down. You’ll need to consider how much you need to replace and whether a single solution is the best way to go.

Choosing cost-effective enterprise software allows you to use only what you need, at a pace you control. For example, you may just want to connect your accounting to your CRM. Should you want to track inventory, or manage projects through the same system, you’ll be able to do that.

You’ll also want to think about data security, and whether cloud-based software will be best for your organization. After thorough research, you might find that a cloud option is far safer and affordable than maintaining your own data center.

Conclusion

It may seem surprising to some people that business software holds such sway over culture. In truth, the software seed was planted decades ago, and we’re only now reaching the point where the ways we work, communicate, and grow can all be determined by the software we use.

The power of the right management software, then, is that it can be an agent of change.

No organization needs to feel the stress of slow process or the fear of working in the dark. Making the choice to empower your workforce with connected, dynamic software is the crucial step toward the kind of longevity and success that only comes from having a stronger culture.

How to Remove Your Data Silo (With An ERP Software System)


The silo. Great for farmers. Not so great for others.

A question for you, dear reader: how much time do you or your employees spend trying to track down records, document versions, invoices, sales orders, etc.?

Farm Silos (data silos)

If the answer is either “more than a few minutes” or “it depends on the person I need to get it from,” that’s a sure bet you’re working in an information silo.

Most businesses don’t love the idea of letting their work pile up, yet they don’t always correctly identify the reason it happens. Why? Because It’s easy for management to attribute a work pileup to laziness or inability. Conversely, most employees in these situations tend to feel that they’ve got too much on their plate.

The bottom line: data silos create problems in both process and productivity. In fact, as Edd Wilder-James of the Harvard Business Review notes, “80% of the work in any data analysis is data preparation.”

But data silos also create issues of communication and trust— and those issues can cause more systemic problems.  

So how can your company develop a more fluid workflow and speed up information retrieval without having to tear down your divisional structure (or turning into a cult)?

Where Silos Come From

Before making the distinction between removing data silos and changing organizational structure, it’s important to understand how both get created.

As organizations grow, and their processes become more complex, they form distinct specialization groups.

erp software system

A typical organization may have divisions for sales, marketing, accounting, project management, human resources, IT, inventory management, and more. While divisions vary by industry and type of work, any business numbering more than a few employees naturally starts to develop this model.

The structure makes sense. I wouldn’t trust my sales team to run my accounting department, and vice versa. It’s entirely natural, then, for divisions to form. But when they do, they create work (documents, processes, data of any kind) that they don’t share.

Not because they have some inherent animosity toward other divisions, but because it’s their work. They know how to interpret it and they know where it’s stored. And if you’re in another department, you don’t know.

That’s how data silos are born from structural divisions.

Data Silos Cause Problems Company-Wide

Though silos are the natural result of business process development, that doesn’t mean we should be singing praises for the data cloisters they create.

Three key areas where data silos hurt organizations the most:

Team Target

Productivity– Businesses will always have data that must be touched by more than one division. Inability to easily find that information takes time, which is one of the major culprits in backlogged work.

Accuracy & Analysis- When information touches more than one division, it may be necessary to edit or reconcile in some way. The result: data gets passed back and forth and, unless employees create a proper edit log, numbers can change or get lost in the process.

As Walter Scott of Forbes writes, “Any time data is touched by a human, objectivity decreases. Machine data is objective. It provides a single version of the truth — one the entire enterprise should share. But it’s impossible to have one version of the truth if the data is in silos.”

Culture– How well employees get along is often determined by how much they are empowered to do their jobs. Having to rely on other divisions for information can naturally create frustration and resentment of the way those in other departments work.

Likewise, members of divisions sometimes develop natural propriety over their data. Simply, they don’t want it to be touched (read: mangled) by anyone else. This, too, can lead to resentment.

Warning: How Not to Deal With Information Silos

By now, you should be convinced that information silos create organizational problems. If you’re not, read Brent Gleeson’s excellent article on the subject.

Gleeson, however, relies too much on fixing company culture at the level of culture. Here’s why that doesn’t work:

If you’ve ever developed a real friendship with a fellow employee outside of the workplace, you know how valuable they can be. You commiserate, discuss what’s working and what’s not, and sometimes develop breakthroughs that lead to a better performance on the job.

The problem with these relationships, for an organization, is that they can’t be manufactured.

Companies try to manufacture them. Oh, do they try.

people using erp software

Picnics, happy hours, contests, (insert your favorite forced work hangout), are all well-intentioned. And any company that cares about its culture should absolutely sponsor these types of events. After all, there’s something to be said for simply knowing that positive and collegial workplace culture is a part of your company’s mission.

But no manager or CEO should mistake those culture-building touchstones as something that will improve information sharing. No matter how much I like my coworkers in other departments, having to track down the data they manage that my department needs won’t happen any faster.

Why not? Because they’re busy. Because I’m busy. When organizations don’t have a way to easily share documents, they’re going to spend time searching. And searching.

Data: Root & the Solution

Back to the essential question: how does an organization maintain its divisional integrity while allowing for better information sharing and culture?

It’s all about the data.

Having an intelligent, streamlined way to share data relieves the burden on any particular employee or department to provide accessibility for others. While employees may “own” the work they’ve done or the numbers they’ve produced, they shouldn’t also be responsible for the wasted time it takes for someone else to retrieve it.

Nor should those who need access waste time taking others away from their work. Documents shared internally limit search time to seconds.

So the solution, naturally, is to find a document storage solution that helps divisions share, right?

Not so fast.

It’s not quite that simple. Documents managed by software applications are often proprietary. Sure, they can be exported, but that’s a manual process that takes just as much time, if not more, than the process of having to ask someone for it. Often, information retrieval means requesting and manual exporting.

It’s a real issue. As the Wall Street Journal Reports, “[36% of recently surveyed] executives whose organizations struggle with silos also were less likely to say their technology investments have achieved or exceeded their intended business outcomes.”

Software applications can share data, but that functionality can require costly integrations. And when one application updates, you have to hope your current lines of communication stay open.

The ERP Software Solution

erp software system

Great workplace cultures evolve from having great processes— enabled by the software that can handle it. Having a single software solution that shares data company-wide without having to talk to several other applications provides the kind of workflow and information sharing that solves silo issues.

True cloud-based ERP software is the only way to achieve that kind of total visibility, especially in a larger organization.

Sharing data via a single application means, importantly, that there’s no need to restructure your organization. Departments can still focus on what they do best. And when they do it, their work goes into a system accessed by every employee.

This process puts an end to time spent looking for data that seems lost but is actually either floating in some application’s ether or locked away in another employee’s digital cabinet.

Opening the information gate improves your process, which improves your culture in a way that no other solution can.

Conclusion

As your organization grows, you may make valiant (and varied) attempts at connecting the divisions that have formed. You may stress collaboration and having an internal culture that works and plays well together.

But let’s face it: work is work. True collaboration comes from clarity, visibility, and access. When you’re able to connect and integrate your company via data sharing, you’ll get rid of the work pile-up.

After all, silos are best left to the farmers.