Live Learning Center. Solution-Driven Integrated Learning Paths. Make the Most of Your Educational Experience
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1 Solution-Driven Integrated Learning Paths Educational Sessions Lean Global Supply Chain Basics of Operation Management Demand Management, Forecasting, and S & OP Professional Advancement Special Interest Topics Plant Tours Networking Events/Peer Interaction Materials for Sale at the APICS Bookstore Make the Most of Your Educational Experience Develop a Learning Plan Assess your learning needs Use teamwork Prepare to learn Create your own Action Plan Live Learning Center Sync-to-Slide
2 Ann K. Gatewood, CFPIM, CIRM, is President of Gatewood Associates. She specializes in delivering quality adult education and training in the areas of enterprise resources planning, operations and resource management, project management and teambuilding, change management and supply chain. She has successfully implemented enterprise resources planning (ERP) systems for numerous manufacturing organizations in a variety of industries, as well as authoring and delivering customized ERP courses. Ann has been a member of APICS for twenty-four years. She currently serves on the APICS C&C Council, was chair of the CPIM Program from , and has held several chapter and region positions. She is certified in both Train-The-Trainer and Learning Dynamics for Instructors, and delivers these and the CPIM and CSCP certification courses to organizations throughout the world via the classroom and the Internet. Implementing Enterprise Systems Lessons Learned from the Front Line Ann K. Gatewood, CFPIM, CIRM, CSCP Gatewood Associates Introduction ERP can transform a business, but only if you do it right Many companies undertake this major project without proper preparation Maximizing the business value is dependent on effective implementations
3 Why do companies implement ERP? Financial improvement/benefits Information integration Operational process improvements Inventory reduction Greater visibility and control Technical reasons Business Drivers Impacting ERP Strategies Which one of these ERP project facts is true? 49% over schedule and over budget 30% failed 70% experienced productivity dip within first 6 months 15% terminated projects
4 What Constitutes Failure? Not making promised ROI Not meeting schedule and Go Live Running over budget Grinding organization to halt or crawl Stopping production or not delivering products/services Reasons for Failure Poor planning Poor project management Change in business goals during project Lack of management support Unrealistic expectations Inadequate education and training Reasons for Failure Problems with data conversion or migration Customizations to handle special cases Failure to understand real requirements of end users Automating redundant or non-valueadded processes Same Processes + New System = Expensive Old System
5 Exercise Implementation Cardinal Sins Lack of top management commitment Inadequate requirements definition Poor solution selection Inadequate resources Resistance to change/lack of buy-in Miscalculation of time and effort Implementation Cardinal Sins Unrealistic expectations of benefits and ROI Inadequate training and education Poor project design and management Poor communications
6 Case Study 60 companies 260 sites 12 primary systems Deploying within 9 months Completed within 30 months Implementation Best Practices Executive management endorsement Executive management active involvement Implementation responsibility shared between IT and functional areas Full-time project manager Project team representing all areas Organization owns implementation Implementation Best Practices All employees at all levels receive thorough training Project team receives project and team training Involve users in planning stages Define scope and stick to it Sound project management skills Ensure data accuracy Invest in change management
7 Lessons from the Front Line Motivate, train and involve team at beginning Identify data owners Pre-implementation prep critical Prepare users for change Design processes to take advantage of software Set up measures for data accuracy and control Lessons from the Front Line Pre-determine roadblocks Not an IT project Educate users in best practices Don t undervalue conference room pilot(s) Incorrect configurations have dire implications Modifications shorten life of software Define reports and housekeeping upfront Lessons from the Front Line Use multiple environments for different functionality Archive old data; don t migrate Know the business needs Only undertake what can be achieved DIRTFT
8 Project Assessment Achieving Maximum Value Know how you will measure success Set up specific metrics based on your industry Implement universal processes Perform post-implementation audits Create continuous learning loop Metrics Tied to Success
9 How Do I Start? 1) Set expectations define project 2) Get organized project plan 3) Start at top full executive support 4) Select the best team for best results 5) Fully commit resources 6) Focus on business process 7) Make timely decisions How Do I Start? 8) Prepare for inevitable 9) Stick to the plan manage scope 10) Communicate often and early 11) Gain user acceptance and buy-in 12) Be prepared to manage change 13) Don t waffle on Go Live date 14) Avoid super-user syndrome Role of Education Soft skills are important, too Train and motivate at all levels Training should not be an afterthought Training can pay huge dividends Educate on business processes, not just tools Emphasize benefits from change
10 Final Tips Make vanilla your favorite flavor Greater good trumps local excellence Change is a four-letter word Welcome to your new legacy system Summary There is no magic in an enterprise system No amount of technology can offset flawed processes Successful implementations require full commitment of management and resources to achieve goals Questions and Answers
11 Conclusion Learning objectives: Identify factors responsible for project failures Understand best practices for enterprise implementations Assess project success factors Improve your organization s implementation effectiveness Ann K. Gatewood, CFPIM, CIRM, CSCP gatewoodassoc@aol.com
12 Solution-Driven Integrated Learning Paths Educational Sessions Lean Global Supply Chain Basics of Operation Management Demand Management, Forecasting, and S & OP Professional Advancement Special Interest Topics Plant Tours Networking Events/Peer Interaction Materials for Sale at the APICS Bookstore Make the Most of Your Educational Experience Develop a Learning Plan Assess your learning needs Use teamwork Prepare to learn Create your own Action Plan Live Learning Center Sync-to-Slide
13 Ann K. Gatewood, CFPIM, CIRM, CSCP is President of Gatewood Associates. She specializes in delivering quality adult education and training in the areas of enterprise resources planning, operations and resource management, project management and teambuilding, change management and supply chain. She has successfully implemented enterprise resources planning (ERP) systems for numerous manufacturing organizations in a variety of industries, as well as authoring and delivering customized ERP courses. Ann has been a member of APICS for twenty-four years. She currently serves on the APICS C&C Council, was chair of the CPIM Program from , and has held several chapter and region positions. She is certified in both Train-The- Trainer and Learning Dynamics for Instructors, and delivers these and the CPIM and CSCP certification courses to organizations throughout the world via the classroom and the Internet. Optimizing Projects with Change Management Ann K. Gatewood, CFPIM, CIRM, CSCP Gatewood Associates Introduction ERP is the backbone of business processes. Best practices inherent in enterprise systems require change for many organizations. Return on Investment (ROI) relies on ability to drive process improvement with the tool.
14 Why do companies implement ERP? Financial improvement/benefits Information integration Operational process improvements Inventory reduction Greater visibility and control Technical reasons Goals Ultimately, the goal of an enterprise system is to improve the organization by altering how work is done. Ultimately, the goal of change management is to improve the organization by altering how work is done. We have tried to implement ERP without changing the business and We did not achieve our ROI when expected. The investment outweighs the return Our processes are not standardized. We did not have anyone driving change People returned to the old way of doing business.
15 Elements of ERP and Change Changing behavior Moving from comfort zone Involves all stakeholders Will be resisted Culture change must be included Goal = managing change to realize business results Top 5 Reasons Changes and ERP are Resisted 1. Users are not aware of the underlying business need for change. 2. Lay-offs are feared as part of the change. 3. Users are unsure if they had needed skills for success in future state. 4. Individuals are comfortable with current state and status quo. 5. Users feel required to do more work with less time. Which one of these Enterprise projects facts is true? 49% over schedule and over budget 30% failed 70% experienced productivity dip within first 6 months 15% terminated projects
16 ERP Failure Factors Incorrect expectations Inaccurate data Inaccurately mapped business processes Same processes + new system = Expensive old system Change Exercise Benchmark Study
17 Benchmark Study Benchmark Study IT vs. Business Projects Too little attention to business side. IT projects don t fail due to technical issues. ERP is a set of business rules. Extensive investment without desired results. Transforming business process and organizational design.
18 Case Study 60 companies 260 sites 12 primary systems Deploying within 9 months Completed within 36 months Lessons from the Front Line Motivate, train and involve team at beginning Without process re-design, tool does not reap ROI Pre-implementation prep critical Prepare users for change Discuss change at every stage of project Pre-determine roadblocks Have a Change Team Roadblocks 1. The brick wall 2. The partition 3. The paper wall 4. The mind-set
19 Three Levels for Change Changing individuals Changing organizational structure and systems Changing climate and culture Inflexible resistance, grudging acceptance, wholehearted support Preparing for Change Business owners involved up front. Steering committee s role. Highlight process benefits formally. Understand that change will be on-going due to continuous improvement. Not about downsizing, but altering culture. Manage apprehension with communication. Questions to Ask What is the desired change and why? What are the bottlenecks? What will be the impact on organization? What will be the impact on people? New process or redesign of old?
20 Next Considerations What is the pain point, and how will change address it? What are the potential objections, and how will we respond? What are the organizational and personal benefits to the change? Including Change in the Project Plan Project management = project activities Change management = people Deadlines for business process decisions Communication plan Training and education at all levels Change management education Include change in risk management Document process changes Business Process Optimization Coupled with ERP to achieve complete value Integrated processes, technology, people. Understand current state. Evaluate for non-value added steps. Gauge potential for standardization. Take advantage of system features to improve. Only long-term competitive advantage.
21 Role of Education Soft skills are important, too. Train and motivate at all levels. Training should not be an afterthought. Training can pay huge dividends. Educate on business processes, not just tools. Emphasize benefits from change. Keys for Achievement Understand your company. Remember size and scope of business. Prepare and motivate the troops. Be committed. Overcome the change fear factor. Prepare for the inevitable. Keys for Achievement Take time to model the processes. Extract, cleanse and convert data. Communicate early and often. Training, training, training. Gain user acceptance throughout. Don t forget customers and suppliers.
22 Who will do it? Corporate management Business partners Software vendor Project team Business owners/users Summary Change maximizes value of investment by ensuring business improvement. Approach to change mirrors management s mindset. Change must be integrated into project management, not an add-on. What is impossible to do today, but if it could be done, would fundamentally change your business. ----Joel Barker Questions and Answers
23 Conclusion Learning objectives: Ability to blend project management with change management techniques Access current responsiveness to change and roadblocks Understand importance of optimizing business processes Develop project plans that address change Ann K. Gatewood, CFPIM, CIRM, CSCP
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