Software Implementation
You have probably heard horror stories about system implementations,
especially related to ERP (Enterprise Resource Planning) and CRM
(Customer Relationship Management). Selecting the right system is
no guarantee of a successful implementation. Consider doing the
following:
1. Business Case Foundation. Don't forget what you should
have known during the selection process. You should have already
understood Critical Success Factors (CSFs). CSFs are defined as
those things that you must do well in order to be successful. As
well, you should have defined measurements of success. Before starting
any project, you should know how to measure success. Measurements
of success act as a motivator for staff during the implementation,
and help keep the project on track and focused on CSF's. Even if
you have not done it for system selection, it's not too late.
2. Business Process Improvement. Don't assume that your
existing business process is the best way to get the job done. Even
worse, don't insist on modifying the new system to do exactly what
was done before. First, ensure there is an understanding of existing
business process. Roll up your sleeves and talk to the people who
do the work. Ask them to tell you how much time is spent on activities.
It may not seem serious if 1 person wastes 15 minutes per day -
but what does it cost if there are 10 people doing the same thing
throughout the year? Assuming a rate of $25/hour and 1,800 hours
or work per year, that little problem has cost the company $112,500
for the year.
3. Project Management. Project management is a key factor
in predicting success of any project. Project management includes
management of scope, budget and timing. Rather than using the school
of hard knocks, you should consider working with a structured methodology
such as published by the Project Management Institute (PMI). A good
project manager has support of upper management, and can be tough.
If the project manager wants to please everyone, he/she is not the
right person.
4. Internal Champion. An internal champion must be allocated
to the project. Even the most difficult projects can become successful
when you have an internal champion who is ready to do whatever it
takes to get the job done. It is best to assign the internal champion
at the beginning of the system selection project to ensure their
commitment and agreement with the system selected.
5. Employee Involvement. You need their involvement for
many reasons. Without it, you could risk missing critical business
process that only they know about. And just as important is the
psychological component. People are often threatened by change.
By getting them involved, they are more likely to be supportive.
6. Best People. You want your best people involved in the
implementation. They have the confidence of their colleagues, know
the business well, and usually have the right attitude. The implementation
is going to take time. You must reduce their normal workload.
7. Risk Management. Seek out potential risks, their impact,
and their likelihood of occurring. Encourage all interested parties
to develop strategies to mitigate the risks. Every organization
has at least 1 naysayer, who can cause a lot of problems, but who
is also very knowledgeable. The naysayers must be included in the
risk management process. By getting their input early, you can avoid
problems and you effectively limit their negativity.
8. Communicate. Don't keep people in the dark. Communicate
formally, informally and frequently.
9. Train the Trainer. This is a good way to cut training
costs, and force employees to know the system. The best way to learn
a subject is to teach it.
10. Extensive Prototyping. There are many options in the
setup of a new system including setup options, conversion, integration,
and customization. An iterative process is required until the prototype
is completed. It may take a few times before you get it right. Take
a small, representative sample of transactions through the system
including reports and controls. Don't go live before everyone is
ready.
11. Beware of Customizations. Customizations can bite. The
first bite is that it slows down the implementation and the costs
soar. The second bite occurs when you want to upgrade to the newest
release. This is not to say that some customizations are warranted
and have a compelling business case.
12. Phased in approach. There is also what is called the
big bang theory, when you do it all at once. I think it got its
name because everyone shot each other. Small and mid sized businesses
especially don't have the manpower to do it all at once.
13. Post Implementation Review. Learn from your mistakes
and there's always room for improvement.
14. Seek independent advice. Enough said.
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