"Ensuring a Successful ERP Implementation - Part 2"

Doug Howardell, CPIM, PMP, member of the ACA Group
Published November, 2011

Part 1 of this article started by saying that an ERP implementation is a complex undertaking that fails almost as often as it succeeds. Yet it is critical to the business that it does succeed. Companies spend too much money on ERP for that investment to be wasted. The only way to ensure successful ERP implementation is to define success, plan for success, execute for success and manage for success. Part 1 of this article described how to define success and plan for success. Part 2 will address executing and managing for success.

Executing for Success

Successful execution of an ERP project is accomplished by taking actions to ensure that the barriers which inhibit creation of the deliverables are removed. The three big barriers to the creation of the deliverables are communication problems, variation in the deliverables and confusion about priorities.

The first barrier to a smooth working project team is poor communication. Eliminate that barrier by, where ever possible, arranging the project team so all the resources needed to create a deliverable sit together. For example, one of the sub-deliverables under the software deliverable is converting the data out of the old system into the new system. That task requires an expert in the old system, an expert in the new system, and a programmer to automate the extraction and import. All three of those resources should sit together to make communication seamless and eliminate delays. Use this concept for each deliverable, define the deliverables then arrange the team so people are grouped by the deliverables they create. Because different deliverables are created at different times in a project, the seating chart may need rearranging a few times during the life of the project. This little overhead activity is preferable to missed deadlines caused by poor communication.

The second barrier to smooth project execution is variation in the format, content and quality of the deliverables. The best way to eliminate that variation is to provide standard tools and processes to produce like deliverables. A simple example of this can be illustrated using the creation of user guides. Create a template for the user guide that everyone has to follow. Using that template, create an example user guide that is shared with the team. Next, define a standard process - a set of steps that everyone who produces a user guide will follow. Create these standard tools and processes for every deliverable. Make sure everyone who has to create the deliverable is aware of the tools and processes before they start creating.

Perhaps the biggest barrier to successful project execution is the inability of the project team to complete deliverables in a timely manner. The root cause of late task completion is often confusion about priorities or about what to work next. Because ERP projects are complex, the project team is usually asked to do many things at once. When faced with overlapping demands, people will try to work on many tasks at the same time making slow progress on all of them and completing none of them. Instead of multi tasking on many items, focus people on completing them one at a time. Example - team members need to complete three tasks this week: test functionality, cleanse data and write user guides. They should start and complete the testing before cleaning data. When they complete cleaning the data they should move to the user guide. That single focus will produce better deliverables and produce them on time.

Manage for Success

Excellent project management is the only way to ensure a successful ERP implementation. Excellent project management consists of actions taken to monitor and control the project while steering it toward the desired result. Processes put in to monitor and control a project are often complex and cumbersome but can, and should be, simple.

Make monitoring simple by helping people self monitor. Devise a way to let each person on a project team know in real time what has to be done and if they are on schedule. Some self monitoring can be accomplished by building visible indicators of where the next action resides. For example, in an ERP implementation you get to the stage where the system has to be tested. The test plan usually calls for a long series of test steps to be executed in a specific order by different people. Once the test plan is created, monitor its execution by creating a little free standing flag for each test that must be conducted. Move the flag to the person who has to execute the current test step. The person with the flag knows it is their turn to execute. When they complete their test step, they move the flag to the next person. Make monitoring simple by extrapolating this example to every step of every task that has to be done to execute the implementation.

Make control simple by helping people self control. Devise a way to let each person make commitments and to report against those commitments. Here is one approach: pick a standard reporting period. It can be a day or a week. At the start of each period, have each person or each sub team commit to the work they will get done in that period. At the beginning of the next period, the person who made the commitment is asked two simple questions.

1. Did you complete the task you committed to complete last period?
2. If no, why not?

There is tremendous power is asking individuals to commit and then to ask them to report on the accomplishment of that commitment. The second question is powerful as well. The question “Why not?” helps identify the root cause of failures to accomplish tasks. Collect root causes and develop corrective action every time a deliverable due date is missed and you will soon make more dates than you miss.

The last and most critical idea to help manage to success is to go back to the beginning and keep the team focused on achieving the results that powered the project. This is easy to do. Make every decision about scope, every decision about resources and every decision about schedule with the project’s ROI in mind. Before making any decision ask the question, “Which choice will keep us on track toward our ROI?” To further reinforce the focus hold regularly scheduled meetings to assess the current ROI. Monthly meetings of the teams’ leaders are usually sufficient to keep that focus.

This article started by stating that an ERP implementation is a complex undertaking. The only way to ensure successful ERP implementation is to define success by defining the return on investment, then to plan, execute, and manage for success. Part 1 said planning for success means defining the deliverables and then planning the tasks, resources and schedule needed to create those deliverables. Part 2 explained that successful execution is accomplished by timely and effective communication, creating quality deliverables and completing the deliverables on time. The management team must define creative ways to overcome barriers in those three areas. Managing for success is ensured by having simple monitoring and controlling processes. The most effective monitor and control techniques are the ones the team members do themselves. It is critical to the business that the ERP implementation succeeds. These simple steps can help ensure success.

To learn more details about how to ensure your ERP implementation project is successful, contact Doug Howardell at DH@theACAgroup.com or 626-836-9261