Published on February 27, 2012
Change is Hard. ERP is Evolution Team B Assignment for MGT 511 Gregory Theis, Katrina McLendon, Rachael Garling, Michael Seuffert
Enterprise Resource Planning Solution Issue involved Implementation
Enterprise Resource Planning• In our first month we have been on track for the implementation of our ERP integration.• We must now accelerate our integration to be complete in the next twelve months.
Assumptions What do we know now?• We have already selected an ERP vendor, such as SAP, Oracle, or Microsoft Dynamics.• We have created an ERP project implementation team from a cross-section of managers, employees and department heads.• We have identified the goals of the project, including processes that will be streamlined and estimated cost savings.
Issues Involved• A majority of ERP projects fail in terms of meeting deadlines and reaching goals. Reasons for this include: – Lack of top-level commitment – Resistance to change – Lack of training & resources – Unrealistic expectations
This is our time to rally as a team! As a group we will meet this challenge, we willhave our systems automated to facilitate the flow of information between all business functions.
ERP Benefits for Stakeholders• The ERP commercial software will allow integration of all business processes throughout the company.• While the implementation has costs and risks, the technology investment has long-term potential pay-offs.• Stakeholders, such as managers, can reject or adapt to the system.• When implemented corrected the integration of all the aspects of our organization will allow a “seamless” flow of information between all business functions. (Boonstra 2004)
ERP Benefits for Stakeholders• This system will embrace management from finance/accounting, manufacturing, sales, and service with an integrated software application.• The integrated system will support business goals, improve systems and processes, lower costs, empower employees, enable partners, customers, and suppliers.
Timeline The compressed timeframe brings additional challenges and stresses.Management, the project team, and the ERP vendor will all be held accountable for meeting deadlines.
Organizational Behavior Issues• Keeping the team motivated• Keeping conflict to a minimum• Effectively handling stress (DuBrin, 2007)
Staying Motivated• Enrich the ERP task by adding variety, responsibility and managerial decision making.• Empower the team members to make decisions and enhance self-efficacy.• Continually provide feedback to the team members throughout the ERP implementation.• Recognize team members for their hard work and efforts. (DuBrin, 2007)
Reducing Conflict• Identify the source of conflict and work to solve the problems.• Managers must maintain an open door policy in order to allow issues to be solved quickly.• Allow room for negotiation but be plausible.• Stick to deadlines and use them when negotiating.• Compromise when parties cannot come to a solution. (DuBrin, 2007)
Managing Stress• Give employees the emotional and social support they need to stay motivated – Encouragement – Understanding – Friendship• Let employees have a cool down period where they can practice relaxation responses.• Practice control techniques – Practice good work habits – Manage time• Breathe deeply since the time crunch stressor cannot be removed. (DuBrin, 2007)
Emotional Intelligence• Top management must demonstrate their utmost commitment to this project and never waver.• Communicate clearly & convincingly• Believe in your people and processes – show that you care• Be aware of non-verbal cues or dissention• Manage emotions when faced with setbacks
Gaining Support for Change• Allow for discussion • Gain political support for• Allow for participation change• Avoid citing poor • Provide education performance as a reason for • Incorporate the human touch change • Pay attention to the• Point out financial benefit emotional aspects of change Leadership will be the key to success. The company is fully committed to this project. We will focus on the positive aspects of the ERP changes, and express our vision of where the company is headed, and how this project can take us there. (DuBrin, 2007)
SOLUTIONS and IMPLEMENTATION
Implementation “Test & Retest the“Train the trainer” Database”“Develop Standard “Go Live”OperatingProcedures”“Data Organization “Evaluation”& Clean-up”
“Train the trainer”• This will require teamwork and mentoring for each individual.• As teams of five are trained they will be the trainer and coach for the next team.• This method will allow everyone to be part of a team and work together in a systematic way.• This will also require everyone to become a coach/mentor after the training, so everyone will have the opportunity to be trained and subsequently train the next group.
Standard Operating Procedures“If an ERP project becomes too large, it will collapse into a black hole. Time and money are absorbed but nothing ever comes out.” ─ aggyey.blogspot.com• Customizing an ERP system adds cost, time, and greater potential for failure.• Due to our time constraints, this means we have to change the way we operate rather than change the system.
Data Organization and Clean Up• All data is collected from the various systems and is combined in to one database that we will use for the ERP.• The data is sorted and all duplicate records are deleted.• Data is then classified to simplify the record searching process and reporting functions. (panorama-consulting.com)
Test and Retest the Database• Testing and retesting the database allows for our team to make sure the system is working before we go live.• It minimizes the room for error as errors can be caught ahead of time and fixed.• Our knowledge of the database is improved through continuous testing.
Going Live• A specific date is scheduled when the database will be rolled out to the rest of the company.• Everyone will receive hands-on training before we go live to make sure they can navigate the system.• Training documents will be provided for reference.• There is little room for error when going live since this ERP had to be completed in 12 months instead of 18.
Evaluate Progress• The first few months after our ERP implementation date are going to be critical because that is when our new users may experience errors.• We will continuously monitor the progress of our system and provide maintenance and upgrades when necessary.• We will ask for feedback from the company of what we can do to help make their jobs easier.
Maintenance and Upgrades• Launching of the new ERP will include & require routine enhancements and improvements to the functionality of the software.• The 60/60 Rule for Software Maintenance and Enhancements will be followed. – 60% of the software dollar for a given product is spent on its maintenance – 60% of the maintenance dollar is spent on enhancement. (programmer.97things.oreilly.com)
Maintenance and Upgrades Cont.• Once the ERP is successfully launched, management’s focus will shift gears to finding ways to support it: – Internet Sales/Online Orders – Order Status – Invoice Review – Management/Maintenance of Online Catalog• Customization will involve investing in other products offered by the new ERP vendor that relate to specific needs of our organization!
MOTIVATION AND INCENTIVES
Motivation/Incentives• It will take an “All Hands On Deck Attitude” to launch this project in the time frame allotted!• We welcome any ideas from all levels of employees that would enhance or make the implementation process a SUCCESS.
Motivation/Incentives Cont• As a REWARD for your dedication & hard work we will be extending the following incentives: – Employee Stock Ownership/Stock Options – Monthly Recognition Program – Flexibility In Schedules – Employer Paid Medical Benefits – Advancement Opportunities – Increased Pay/Bonuses/Merit Raises• ***Note: Offers are contingent on CAN DO ATTITUDES & Employee Performance!!!!
Next Steps• There is No I in T.E.A.M.• ALL HANDS ON DECK & A CAN DO SPIRIT!!!!• Decreased Cost= Increased Revenues & Increased Pay!!! Empower• Lead By Example & Rely on the Buddy System Enable partners• 2 Heads Are Better Than 1 Enable customers• Remember: The Client Is Always Right!!!!!
Conclusion• The ERP system allows every functional area to share every process and every piece of data.• A change of this magnitude will require not only time and resources, but an understanding of organizational behavior and emotional intelligence.• Faster, leaner, more responsive to customers: this is not just change… it is evolution.
References• Boonstra, A. Interpreting an ERP-implementation project from a stakeholder perspective. International Journal of Project Management 24(2006)38-52.• Dixit, A. (n.d.). Five Steps to ERP Master Data Rationalization | 360 ERP Blog. ERP Software Selection | ERP Implementation | Organizational Change Management. Retrieved February 26, 2012, from http://panorama- consulting.com/five-steps-to-erp-master-data-rationalization/
References• DuBrin, Andrew J.. Fundamentals of organizational behavior. 4th ed. Mason, OH: Thomson/South- Western, 2007. Print.• "The 60/60 Rule - Programmer 97-things." 97 Things Every Programmer Should Know - Programmer 97-things. N.p., n.d. Web. 25 Feb. 2012. http://programmer.97things.oreilly.com/wiki/index.php/The_6 0/60_Rule