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SCOPE AND OBJECTIVES Due to the aforementioned issues, project scope and objectives were limited to the following: • Y2K compliance
(actually the main de facto schedule and objectives driver) Not included, but desired: • business process
reengineering Applications addressed were: • financial:
general ledger, accounts payable, accounts receivable, and financial
planning/budgeting LESSONS LEARNED The company learned some important lessons during this project. Some were relatively painless, some didn't come so easily. To save time, only the ones deemed most important are listed below. Major Executive Involvement Is Crucial to Success Executives control the staff, budget, punishments, and rewards. In the cases where we failed to engage executives, results usually suffered. When engaged and informed, they usually improved the situation. Notable examples: (1) When it became apparent that training was seriously deficient, several VPs and the CEO took decisive steps to alleviate the problem. (2) When we noticed that contingency planning was potentially deficient, the CEO made it a personal crusade and insisted upon a plan before he would approve the implementation go-live date. The steering committee was the principal tool employed for executive engagement. All of the executives whose departments were most affected were on the steering committee, along with the CEO, IT manager (who was also the project manager), and an outside business consultant. As inevitably happens in situations where busy people have multiple priorities, it was a chore to get everyone to show up at meetings, do critical reviews, and make decisions. When it was successful, which it wasn't always, several people had to get together in advance to push an agenda and line up participation. Thankfully, the new CEO, once he got on board and saw how important this project was, proved invaluable with his support when it was most needed, although we had to carefully choose our battles. Business Process Reengineering Should Be Done Up Front The company elected to put the system up first and reengineer later. This was primarily attributable to budget and schedule reasons. The downside is that the system, as implemented, tends to perpetuate the status quo, although certain improvements came about just from installing it. Some minimal reengineering was done where time permitted or where the old procedures were almost totally unworkable. Now, we're going back and working on the processes with the best improvement potential, but not as fast as we'd like. Objectives/Metrics/Issues Should Drive the Project Budget and schedule drove this project, and it showed. Metrics were developed, but key performance reports are still being brought online. In the instances where the objectives were stressed, improvements were made. Examples: the CEO and Finance stressed (1) pricing rationalization. Margin improvements and simplified order processing have already resulted. (2) Inventory accuracy was stressed as a prerequisite to system performance—improvements are gradually occurring. The team did do a good job making business issues drive the project, towards the end, as their expertise developed. One of the main benefits of the project was the training of a cadre of people prepared to run a formal business system. Now they're ready to do a great job on the next implementation! Management is driving needed improvements and forcing the system to adapt. For example, they are addressing customer service and inventory issues effectively. To Be Continued STAY CONNECTED To stay current on Lean Management Basics and Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you our PowerPoint presentation "How to Survive in an Entirely New Economy." All at no cost of course. Your personal information will never be disclosed to any third party. privacy policy
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