24
May

ERP CHANGE MANAGEMENT IN A NAPKIN

Escrito el 24 mayo 2010 por Jesus Guerro en General

It is well known the impact that large ERP implementations have on the organization but some companies often forget that point concentrating its efforts on the technical side.
Some days ago I was having lunch with a friend of me who was responsible for plannig and designing the Project from the Internal Organizational Perspective.
He was concerned about managing people in parallel to monitoring effcicient implementation (functionality vs time and cost).
The decalogue showed below is the result of an improvised schedule written on
a napkin.
I have thougth it might be a good idea to publish it in the blog, once my friend sent me a copy of the little paper, if it could be helpful for someone else or maybe you want to add or propose something else.
1.- Clear Strategy, a Clear porpose. –> Entire Organization Objectives. Rewards based on Business performance. Unproper design of objetives and compensation provokes personal and departmental conflicts.
2.- Clear Communication along the Organization. All People need to understand benefits of new situation, individually and collectively. –> Assess Support. It will be necessary.
3.- Clerar Path. Everyone needs to understand which his mission is.
4.- Planning vs Budgeting.
5.- Bordeless Culture. Info has to flow effcienty. People needs to understand processes and criticity of Info transfers in oder to prevent bottlenecks which penalise the project in time and cost.
6.- Deficient Functional Analysis is a major cause of SAP Prjects failure. Once Strategy is clear defined, the system has to be designed exactly according to that and not the contrary. Often Organizations are adapted to the ERP system standards causing divergencies with strategic plan and conflct.
7.- Ongoing People support. Sponsorship is important but the real key are the facilitators- Experience is Change Management, preferable linked with ERP implementations.
8.- To allocate the rigth people in the rigth place. Some critical points require a high level of technical expertise, In other cases the interaction with the user becomes themilestone. When lacking expertise the cost appears in delay and money.
9.- Implimentations are risky. Everything has to be “precognised”. Non ideal situations need to be draw up before they happen. Project Management Experience is crucial here.
10.- Slow implementations not only suposes cost and time, what it worse, It damages the Organziation, people get disappointing and all gets more difficult.

Regards,

Comentarios

José Pedro Salvado 20 junio 2010 - 13:21

Dear Professor Jesus,

Thank you for this post I think is very important to deliver disruptive offers with a sense of simplicity and functionality in customer centric approach. That´s what really matters for customers today. I´m saying this because even this morning since a good organisation and method is important when stressful moments arrive and tasks are more than ever a question of discipline, I went through my Café con leche y tostada de tomate with a pen and a block of post-it!! Sometimes convenience is just a matter of execution and lateral thinking!! I love the idea showed by this foto. Do you imagine how many great ideas surge in a napkin??
Regarding these 10 points that you suggested…I think is a concise and practical action plan that summarize perfectly some key points in any execution and planning approach. According to my perspective, I smile when I saw the alignment from point 7 till 10. The sequential of these points is perfect. I realise myself and ask you if you don´t agree with me??Besides the logical sequence which I think is really well structured, I also think that from 7 till 10 we can suffer from the same caos and issue. To implement well, you need to address specific tasks to specific people who understand the matter in fact and share a general view of the all picture, but the transition need to be made by a profile basis criteria. Reflecting a critical asset in any implementation plan/format, (people) need a carefully plan and understanding about which are going to be the final outputs that strategy is focused in.
The matters Strategy vs. Implementation/Execution still a key transition in many organisations where people and tasks need to be coordinated to a final outcome with a purpose to serve the organisation as a whole. If you don’t allocate the right people to the right task, you are going to underperform in the beginning of the execution (crucial stage, when everything should match), having people without enough experience doing that, probably you are going to waste resources, time is going to be badly managed and wasted correcting pointless points that should be solid grounded in the start up of the process, you lose efficiency….and all the process will be misleading a full leque of opportunities and advantages that at the first instance were set up in the strategy phase. Like a snow ball efect…that is going to affect the overall success of an organisation

Thank you for your time Professor!

See you in class…

Best Regards,

José Pedro Salvado

Jesus Guerro 22 junio 2010 - 13:26

Hello Jose Pedro!, what a good to see you over here! I appreciate you enjoyed the post. All you say is a perfect extended explanation of purposes and risks behind those points. First of all Companies need to clarify what they really want, what they really need and whcih is the people they require to guaratee success, Putting the rigth people in the rigth place at the rigth moment is the cheapest bet of company, even with high wages! Otherwise, objectives will be in danger and for sure, delayed. And we know how important is to be fast nowadays.
Thanks a lot for your smart reply.
regards,
Jesús Guerro

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