Transcript Dias nummer 1 - ERP Implementation

Five Key OCM Challenges with ERP
Implementations
Eric Kimberling
President and Chairman
Panorama Consulting Solutions
www.Panorama-Consulting.com
Phone: 720-515-1ERP
Twitter: @erickimberling
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
1
Agenda
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1
Brief Introduction of Panorama Consulting
2
Purpose of the Webinar
3
ERP Implementation CSFs
4
Five Common OCM Challenges
5
OCM Tools to Mitigate the Challenges
6
Questions and Answers
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
2
About Panorama Consulting Solutions
Niche consulting firm with focus on the ERP market
We our service offerings include:
• ERP Software Evaluation and Selection
• ERP Implementation Project Management
• ERP Organizational Change Management and Benefits Realization
• IT Staffing and Support
• Application Development
Experience with 150+ ERP packages
Depth in targeted industries, including manufacturing,
distribution, supply chain, and high-growth companies
ERP Vendor Independent and Neutral
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
3
Some of Our Clients
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4
Broad and Deep ERP Expertise
Some of the 150+ different ERP software packages we have
evaluated and implemented for our clients
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
5
Agenda
✓
1
Brief Introduction of Panorama Consulting
2
Purpose of the Webinar
3
ERP Implementation CSFs
4
Five Common OCM Challenges
5
OCM Tools to Mitigate the Challenges
6
Questions and Answers
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
6
Purpose of this Webinar
• To compare the benchmarks from ERP projects
that succeed vs. from those that fail
• To discuss ERP Implementation CSFs (Critical
Success Factors), especially in OCM
• To discuss five common OCM challenges
• To recommend OCM tools and approaches to
deal with these challenges
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All Rights Reserved.
7
OCM Definition
• Organizational Change Management supports and compliments the
project management team as they focus on the technical
implementation of the ERP solution
• The OCM team assesses, plans and directs actions designed to
ensure a successful human interface during and after the ERP
project
• The human interface includes system users and non-users
• It includes both internal and external constituents
• It includes training, communications, evaluation, development,
reporting and any other investment in human capital
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
8
Guiding Philosophy
• Software does not deliver benefits or
performance improvements – people do
• OCM is therefore not optional on an ERP
project, it is an integral Critical Success Factor
(CSF)
• The orientation of OCM is toward people
• The foundation principles for effective OCM are
alignment and accountability
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
9
Agenda
✓
1
Brief Introduction of Panorama Consulting
2
Purpose of the Webinar
3
ERP Implementation CSFs
4
Five Common OCM Challenges
5
OCM Tools to Mitigate the Challenges
6
Questions and Answers
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
10
Top Reasons for ERP Failures
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Lack of purpose for implementing ERP
Not going into the project with “eyes wide open”
Lack of executive and management buy-in
Not leveraging the “A-Team” from the business
Not choosing software that is aligned with the business and key
requirements
Misalignment between software configuration and business
processes/workflows
Lack of effective OCM and training
Weak internal and external project management
Underdeveloped business case to manage business benefits
Items in blue are directly or indirectly mitigated by an effective ERP OCM methodology
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
11
Top ERP Implementation
Challenges
Source: Panorama’s 2011 ERP Report
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All Rights Reserved.
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Why the Need for ERP OCM
• ERP typically affects an entire organization, no matter how large or
small the company
• As a result of ERP, end users are often overwhelmed with changes to
their jobs, including:
– A new system to perform their day-to-day jobs
– New processes and way of doing business
– More exposure to and interaction with new business processes and data
• People cannot embrace what they don’t understand. OCM
addresses this through communication.
• Need to balance between the need for OCM and:
– Appropriate timing for messages (e.g. layoffs)
– Working within the constraints of budget, time/duration, people, etc.
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
13
Why the Need for ERP OCM
• Employees about to migrate to ERP need to be presented with
information and knowledge to ease the transition
– More than just training them how to use ERP
• In addition to system training, employees also need to understand:
– Why the organization is switching to ERP
– How and when ERP will affect their jobs
– How ERP will improve their jobs (what’s in it for me?)
– How ERP will make the overall company more effective
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
14
OCM CSFs
Truth
• Full Disclosure
• Open Dissent
Alignment
Accountability
• Goal Alignment
• Action Coordination
• R&R Clarity
• Consequences
Engagement
Leadership
• Participation
• Priority
• In Fact
• In Appearance
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
15
Agenda
✓
1
Brief Introduction of Panorama Consulting
2
Purpose of the Webinar
3
ERP Implementation CSFs
4
Five Common OCM Challenges
5
OCM Tools to Mitigate the Challenges
6
Questions and Answers
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
16
Five Common OCM Challenges
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The Conspiracy of Silence
We Go-Live When ?!?!
Time to Process
Bottlenecks
Walking the Talk
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All Rights Reserved.
17
Five Common OCM Challenges
The Conspiracy of Silence
Challenges
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No open dissent
Hostile withholding of information
Passive aggression or covert resistance
Procrastination and/or continuous crisis as cultural norms
Mitigation Strategies
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Look for the origin
Create a safe place to share
Identify the sources and try to turn them
Confront resistance and deal with it
Consequences for non-participation
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All Rights Reserved.
18
Five Common OCM Challenges
We Go-Live When ?!?!
Challenges
– Limited time to accomplish essential OCM tasks
– Not enough time to do it right (plenty of time to do it over)
– Flexing scope rather than go-live date
Mitigation Strategies
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Resolve competing priorities
Do critical path planning
Prepare and follow testing scripts
Have a “Plan B”
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
19
Five Common OCM Challenges
Time to Process
Challenges
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Late, incomplete, inadequate communication with the organization
No time to process
No time to respond
Loss of confidence and engagement
Mitigation Strategies
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Communicate early and often
Promote inbound communication; 1-on-1s, stand up/town hall meetings
Respond to feedback
LISTEN, LISTEN, LISTEN
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20
Five Common OCM Challenges
Bottlenecks
Challenges
– Single group of multipurpose resources
– Pinch points in the process
– Consolidating power and control, losing quality and efficiency
Mitigation Strategies
– Separate technical and OCM core teams
– Segregate and articulate responsibilities
– Position OCM in an integral, helping role
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21
Five Common OCM Challenges
Walking the Talk
Challenges
– Communicating priorities and following through
– Sheltering core team resources
– Resolving competing priorities
Mitigation Strategies
– Look for an excuse to reinforce the message
– Make the hard choices
– Remember that a picture is worth a thousand words, so is a decision
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
22
Agenda
✓
1
Brief Introduction of Panorama Consulting
2
Purpose of the Webinar
3
ERP Implementation CSFs
4
Five Common OCM Challenges
5
OCM Tools to Mitigate the Challenges
6
Questions and Answers
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
23
OCM Tools
The Conspiracy of Silence
– Organizational Readiness Assessments
• Online Surveys
• Focus Groups
• 1-on-1s
We Go-live When?!?!
– Change Impact Assessment (CIA)
– Training Needs Analysis (TNA)
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All Rights Reserved.
24
OCM Tools
Time to Process
– Communication Plan
– OCM Charter
Bottlenecks
– RACI Chart (Responsible, Accountable, Consulted, Informed)
– OCM Charter
Walking the Talk
– Milestones & Metrics Charts
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All Rights Reserved.
25
OCM Tools
Diagnostic Tools
Development Tools
Organizational Readiness
Assessments
OCM Charter
Change Impact Assessment
Communication Plan
Process Change Matrix
Training Needs Analysis
Proficiency Testing
RACI Chart
(Responsible, Accountable, Consult, Inform)
Milestones & Metrics Chart
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
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OCM Work Streams
Manage
Change
• Standardize
Processes
• Set Expectations
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Manage
Resources
• Organization
Readiness
• Manage concerns
and questions
• Employee Buy-in
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Communication
Planning
• Manage
communication to
workforce
• Communicate
effectively
• Develop sense of
ownership
OCM Work Streams
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
29
Summary of Lessons Learned
• OCM can be the difference between success and failure
on an ERP project
• OCM can deliver on-going benefits to organizations, both
for ERP and creating culture change
• It is important to keep your eyes (and ears) wide open
during the process
• Independent and external expertise can support the
technical implementation and help avoid some of the
common OCM pitfalls
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
30
Five Key OCM Challenges with
ERP Implementations
Eric Kimberling
President and Chairman
Panorama Consulting Solutions
[email protected]
720-515-1ERP
Twitter: @erickimberling
© Copyright 2011 Panorama Consulting Solutions.
All Rights Reserved.
Brian Potts
Sr. Manager, Business Development
Panorama Consulting Solutions
[email protected]
720-515-1ERP
31