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a clear delineation on what’s “manda- tory” and what options would be “nice to include.” Such a plan will paint a clearer picture of how the software should interact with the overall busi- ness. It also reinforces the rationale behind any tradeoffs while not sacri- ficing essential business needs.
5) Don’t look for a “one size fits all” ERP strategy.
There is no predetermined template or step-by-step procedure that will work for every organization. Every busi- ness comprises unique people and pro- cedures, so it is impossible to make broad generalizations regarding Tier I versus Tier II systems, or choosing between cloud-based and on-premise options. While there are certain guide- lines and commonly held practices, ERP projects mirror made-to-order production—only after understanding the specific needs, characteristics and desired vision can a proper strategy be formulated.
6) Focus on organizational change management (OCM).
Due to the complex nature of change, OCM has become a popular strategy for improving integration and adhering to updated business prac- tices. However, employees may rebuff OCM projects when managers simply declare a change must be made, and then falsely believe that employees will fall in line and enact and preserve the change. While these assertions may work for small, uncomplicated tasks, it is no surprise when full-scale ERP proj- ects that use the same approach bump up against underlying hesitation and resistance. Without end-user accept- ance, results usually will be temporary or unsupportive.
OCM offers the leadership team the pulse of the people. It helps identify pain points and trouble signs. Employ- ees gain an outlet to vocalize their con- cerns while knowing that management values their contributions.
7) Determine the measures of suc- cess before implementation starts.
To correctly steer the project, deter- mine the measures for project success early. When the need for an ERP system
CHANGE AHEAD
first becomes apparent, envision how the system should improve the busi- ness. If the sole goal becomes imple- mentation, then the project loses sight of what the software was intended to accomplish and it becomes increas- ingly difficult to gauge return on investment.
Moreover, timely incorporation of success standards protects against delays and missed objectives. Benefits realization also serves to align project expectations and avoid unintentional misunderstandings.
8) You don’t have to implement ERP all at once.
Because an ERP system becomes intertwined with the various levels of a business, it can be precarious to imple- ment. Many ERP systems have modu- larity within functional areas (CRM, PLM,MRP,etc.)thatallowthesoftware to be broken down into segments. Implementing in phases can help with troubleshooting and resolving compli- cations on a smaller scale, before the full system goes live. Attempting to unnecessarily tackle an implementa- tion all at once may cause serious oper- ational disruptions and rework.
9) If you don’t measure it, you won’t achieve it.
As the old adage goes, “out of sight,
out of mind.” Manufacturers should supplement any established goals with clear methods to objectively assess per- formance. Lean towards meaningful metrics that accurately and realistical- ly ensure that the project follows the correct path. Failure to address clear criteria reduces accountability.
10) Recognize red flags indicating you’re headed down the wrong path.
Know what warning signs to look for during implementation, to facili- tate timely corrective action and pre- vent disasters. For starters, watch for high turnover among project-team members.
Another red flag: over-reliance on internal resources. If the team refuses to consider outside project-manage- ment support, there could be prob- lems during implementation. Also beware of the “I don’t care, just get it done” mentality. Without a proper response, this will eventually create and compound issues.
Finally, watch for excessive addi- tions to the project scope and unreal- istic demands that get tossed in with lit- tle to no consideration to the project budget or schedule. It is vital to under- stand any potential risks and be ready to take corrective actions to steer the project back on track. MF
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