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Effective ERP business

I would like to discuss the sixthfactor required for ERP implementation success – “Effective ERP business integration, training, change facilitation, process specification” with a weight of 6%

By business integration I mean that the ERP is integrated in the way the business operates and operates smoothly and intuitively – there are not a whole lot of manual processes and spreadsheets outside of the system.  To achieve this the ERP must be configured in a manner that closely aligns with the way of doing business of the client organization and then there must be effective training.  Coupled to this effective change facilitation, managing the psychology of change and process specification must be an integral part of the project.

As you consider what I have written above it will be apparent that these points are all a logical extension of the Business Systems Laboratory – all of these items should be tested and refined in the Laboratory, as explained in the article on the Business Systems Laboratory.

Case Study

This is an extension of the previous case study with regard to War Games and the Business Systems Laboratory.

The client was the distributor of high end fragrances and the Managing Director was actively and intimately involved in the project.

Training: Once the Laboratory was running smoothly and the War Games were successful the staff were all trained in the use of the ERP.

Change Facilitation: Throughout the project the Human Resources Manager was actively involved.  She attended weekly project progress meetings and her brief was to take note of all matters relating to the project that might cause discomfort amongst staff such that she could ensure that necessary actions were taken to facilitate the adaptation of the staff, particularly those whose jobs were impacted most, to the new ways of doing things.  She demonstrated a real aptitude for this with the result that all staff transitioned easily.  The deep engagement of the Managing Director also helped with this.

Process Specification: In the Laboratory all processes were optimized and documented and staff were trained in the new processes such that when the system ran live all processes were optimized and ran efficiently.

Business Integration: The net effect of the above was that the ERP was seamlessly integrated into the business and ran smoothly from day one.  As previously reported, dramatic business benefits were achieved.

The end result of the above process was that the system ran live smoothly with minimum business disruption and has been used effectively ever since.

That is a typical outcome of a well implemented ERP in accordance with everything that I advocate.

Contact Me

If you find what I share of interest and desire more information please email me and I will share more detailed information.

Next week I plan to discussthe damage that is caused by Technology deficiencies – sub-optimal or defective software, hardware, network, etc– the seventhfactor causing failure.

For more information about the services I am offering please visit my website.

For back issues of these articles please visit my blog.

Context for Reference

For ease of reference the full list of factors is as follows:

Factors causing failure

The seven factors causing failure are:
1.           Mythology, hype and tradition – 30%
2.           Inappropriate or ineffective executive custody, governance and corporate policy – 19%
3.           Lack of effective strategic alignment and strategic solution architecture – 16%
4.           Lack of Precision Configuration – 14%
5.           Failure to address soft issues, business engagement and change impacts – 12%
6.           Lack of an Engineering Approach – 6%
7.           Technology Issues – sub-optimal or defective software, hardware, network, etc – 3%
The percentages represent the extent to which each of these factors has played a part in the failed implementations that I have investigated.  It is important to note that the factors with the lower weights are still very important but that if the higher weighted factors fail it does not help to get the lower weighted factors right.

Critical factors for success

The seven critical factors for success are:
1.           Effective Executive Custody – 25%
2.           Effective Strategic definition and alignment – the Essence of the business – 22%
3.           Effective engineering solution design and implementation approach – 17%
4.           Effective Precision Configuration – 16%
5.           Effective Business Simulation Laboratory operation (war games) – 12%
6.           Effective business integration, training, change facilitation, process specification – 6%
7.           Reliable technology – 2%


From consideration of the above it will be apparent that the real issue is not the ERP product, all the mainstream products are capable of delivering a quality outcome, it is the quality of the implementation and therefore the capabilities of the implementer plus the engagement of the business that are critical.
In the weeks ahead I plan to continue to share the headlines of my thoughts on each of the above and the lessons that I have learned in terms of how to implement ERP and other business system projects in a manner that ensures a successful outcome.

My offering

I offer technology agnostic services in terms of:

a. Instruction and training in how to apply these methods. 

b. Troubleshooting projects that are in difficulty and providing guidance to turn them around.

c. Strategic project leadership services achieving a high level of executive engagement and delivering high quality business relevant outcomes.

d. Guidance on “precision configuration” – a very rigorous approach to the detailed content of master data and other validation lists and other elements of the configuration as discussed previously.

e. Comprehensive robust, tender based ERP and other major systems procurement.

If you would like further information please reply to this email and we can get on Zoom to discuss.

As stated previously I am very willing to pay a finders / referral fee for any work referred my way or to sub-contract where this is applicable.

I look forward to being of assistance to you or to any referral that you can make.

Warm regards,

Dr James A Robertson