Your path to a successful ERP switch
Ready set go - a method for success
A couple of years ago, we analysed 30 more or less successful ERP switches. The analysis identified three common root causes of ERP project failure. These are:
- Management's lack of experience with similar complex projects
- Lack of experience of the project team in complex development projects
- The company's lack of a clear vision, scope and link to the corporate strategy
From these root causes we were then able to group actions that need to be taken to put the company in the right position for an ERP change. The actions are grouped into 5 different areas:
- Scope, objectives and vision
- Project governance and ownership
- Change management
- ERP project expertise in the project team
- IT and solution architecture and technical expertise
So where do you stand today?
To start with, talk to key people in your organisation if they have experience with an ERP change and if they think you need to prepare. If you hear people saying "How hard can it be?" that's the first warning bell that you're not ready. Other warning bells are "How do you start?" or "We'll invite some suppliers to see what they have". Prepare for heartache if this is the situation you find yourself in when you start the switch.
The 'Ready to Start' diagnostic form allows you to try to make an initial assessment yourself.
What does it mean to have Scope, Objectives and Vision in place?
In order to set the boundaries for the upcoming ERP change, you need to have decided what you want and be able to make it clear to all colleagues. In order to be able to convince people of the objectives of the project, it also needs to be clearly linked to the company's strategy. Especially later on when some people find the upcoming changes challenging and you need a clear goal to stick to.
Project management that stabilises progress
Many companies have their own project methodology with which internal development projects are carried out. Some work alternately with waterfall methods and agile methods. Virtually all ERP vendors work with waterfall models, partly because it is their way of controlling their financial risks with the delivery as the delivery agreements almost without exception specify a waterfall-based delivery method. To keep a proper grip on the project over time, you therefore need to find a balance between your own project method and that of the supplier. Careful analysis is the basis for success in this area.
Change management that delivers impact
There is a great misunderstanding about what change management is about when it comes to ERP changes. It is rarely about small changes to be agreed upon, but rather large-scale changes at all levels of the organisation. Not infrequently, the goal is to harmonise working methods between several businesses and/or establish a new operational model that has a different organisation or, for example, a different way of measuring and monitoring performance. First-line employees will be most focused on keeping their jobs when the new is more efficient than the old and trying to understand how to do things in the new system. Middle managers will be thinking about how to keep their business on track and not lose profitability, and management will be concerned that profit and loss accounts look different and that dissatisfaction in parts of the organisation does not take hold. Having said that, there are structured change methods to guide the whole organisation through with limited negative impact. We include this in our methodology. We are strong advocates of not making change management a side activity, but that it is the responsibility of everyone involved to communicate the change and involve colleagues in a good way.
Project team competences and understanding of their role
"You will now be part of project X and be responsible for Y"... it sounds familiar. What is the likelihood of success with such a vague description? We are committed to providing everyone with clear role descriptions and responsibilities. We also put a lot of emphasis on raising members' understanding of what the reality will be during the project and what tools we have at hand to deal with contradictions, ambiguity and decision paths. Without that, it will be all sea storms.
IT and solution architecture
To ensure that there are clear frameworks and conditions for how the new system will be "screwed into" the company, principles are needed regarding architecture, information models, IT security, etc. No ERP project will get very far without this in place. If the expertise in this area is not available internally, specialist expertise in the field needs to be hired to find out how things should be integrated and how master data etc. should be established in the future.
So what can you do now?
For starters, talk to us. If you are in the early stages, you may need to change during the next year because the support expires on the current system, then it is high time to plan for Ready Set Go. Of course, we also help with the purchase of new ERP, we have helped customers with that many times and have well-functioning methods for that as well. As the icing on the cake for procurement, we include several of the preparation activities from the above method to make you as Ready Set Go as possible for the upcoming ERP change. We will be in touch!
Want to know more about Ready set go?
Contact Stefan Schnitzer to discuss your path to a successful ERP switch.
Stefan Schnitzer, Senior Partner
070-3075730
stefan.schnitzer@rededge.se
Surbrunnsgatan 64A, 113 27, Stockholm, Sweden
Book an appointment