Business Led or You're Dead
Somewhere in the midwest, storm clouds are brewing over yet another ERP implementation project. In about six weeks, when the project is expected to go live, the ABC company (name changed to protect the guilty) will learn that many of the process decisions they've made are wrong. The new automated processes will actually be slower and more cumbersome than current processes. Their staff will be completely unprepared. Things will grind to a halt.
It will be an unmitigated disaster.
How do I know this? Unlike the company, I spent an hour or so listening to the Project Manager.
His client company is a leader in its industry. Their past success is making them "hard of hearing". "Just make the system do what we've always done." they say.
Which should beg the question; "Why not stick with the legacy system?"
What they don't understand is that to achieve meaninful improvements, you actually need to change something.
ABC's expectation is that by simply installing a world class ERP system, their processes and operational performance will improve as a result. Nothing could be further from the truth.
That same reasoning would have you purchase a pair of Air Jordan basketball shoes with the expectation that you'll be playing guard for the Chicago Bulls.
Not gonna happen.
Operational excellence is achieved with three ingredents; great people, great processes and the right tools. A new ERP system is just a tool. Just one componant.
Installing a new system is an opportunity to re-examine the way your company does things. A chance to simplify, to optimize, to take a fresh look at the way things are done. It's a chance to re-educate yourself in how your company processes work. If you don't do this on a regular basis, you'll be surprised at the difference in the way you think processes work and they way they're actually done.
Reviewing processes takes a big investment in time and resources - business resources. Unless the project is business led, you simply can't pry loose the key people who can make a big positive difference in the outcome. Everyone is too busy "doing their regular jobs" to devote any time on the project.
It's the Number 1 reason ERP projects fail.
(Shameless plug) If your company is contemplating a major I.T. project in the near future, may I suggest you check out my e-Book entitled; "Lessons Learned from the ERP Frontline".
It's available by either clicking on the Lulu link on this website or by going to http://www.lulu.com/ and searching on my name or the title.
And best of all, it's free.
