ERP Implementation and Change Management

1. Planning Work Process Breakdown Deployment Continuous Improvement ERP Implementation and Change Management 4200 Montrose, Suite 590  Houston, TX 77006 Phone 713/522-9656  Fax 713/522-9661 www.wjmurray-assoc.com

2. IF YOUR ERP IMPLEMENTATION ISNOT: • Driven by a clear, concise business/financial appropriations request • Enabling managers at all levels to fully understand and authentically buy into the necessary work and cultural changes that are required to capture the full benefits of an ERP system • Configuring the new system to accommodate your specific business practices • Engaging process owners in configuration design and in achieving business case goals • Being managed by a comprehensive project plan that is continually updated • Anticipating end user resistance to work process changes and ERP system and properly preparing to minimize these hurdles to success • Continually updating the business case as the work scope changes • Focusing on realizing the full capabilities and benefits of ERP, not just the go live date • Consultants who are committed to stay until the job is done (within the agreed budget) Then It’s Not An ERP Implementation

3. ERP IMPLEMENTATION IS A PROCESS OF: STEP I: PLANNING • Identify and engage work process owners • Establish metrics for work process improvement • Communication plan • Establish work change teams STEP II: WORK PROCESS BREAKDOWN • Define and map the current state • Work process redesign - define the future state • Pilot new work processes • Select and train super users • Inform managers and supervisors of the changes required to achieve the future state • Configure ERP system to support future state processes

4. ERP IMPLEMENTATION IS A PROCESS OF: • STEP III: DEPLOYMENT AND TRAINING • Communicate the big picture; why, what when and who • Train end users in new work processes • Implement the ERP system - GO LIVE • STEP IV: CONTINUOUS IMPROVEMENT • Establish improvement teams • Continuous benchmarking • Establish internet/intranet vehicles • Link to performance appraisal

5. Your People and Processes ERP Technology INTEGRATING PEOPLE, PROCESSES AND TECHNOLOGY Managing Your Business Transformation ERP Benefits: Continuous Improvement of Business Processes

6. THE WJ MURRAY & ASSOCIATES’ IMPLEMENTATION PROCESS DELIVERS: • Informed executives, end users and process owners who are authentically committed to the ERP implementation and its full impact on work processes • Achievement of the business case - ROI, NPV and Payback • Achievement of the future state of work process improvements • Committed end users that drive continuous work process improvements • A process that actively involves end users, doesn’t dominate them • Internet/Intranet vehicle for sharing work process improvement learnings • A process for benchmarking and obtaining best practices information • A process for managing the implementation of large ERP projects • On time, on budget implementation of work process changes • High-performing work groups, a less “frazzled” staff

7. CHARACTERISTICS OF THE WJ MURRAY & ASSOCIATES’ ERP IMPLEMENTATION PROCESS • Driven by the business case, work process owners and end users • Authentically engages senior executives, work process owners and end users in the process of changing work processes and configuration design • Develops partnership with Operations, Human Resources, Accounting, Finance, IT and consultants to achieve business case goals • Maintains robustness of business case as scope changes • Process mapping that is quick and efficient; template driven • Project consultants are principals, not junior level consultants • A proven process driven by specific metrics • Goes beyond effectiveness (Y2K compliant) to business transformation • Comprehensive; integrates people, processes and technology • Consultants stay until the job is done (and costs stay within budget)

8. Actions Management engagement: Scope of business transformation, time frame and costs Extent of work process and cultural change Pre- and post-implementation training Rank order work processes by value added Establish work teams, build partnerships among Operations, Finance/Accounting, Human Resources, IT and consulting partner Establish metrics for work process improvement Develop and execute communication plan: What, why, when and who Complete project plan in Visio or MS Project Develop preliminary measures of success Update business case Results/Outputs Management at all levels buy in and support scope of business transformation, organizational change, training, costs results, time and risks Consensus on ERP implementation outcomes Solutions to overcoming barriers are identified Project plan approved: Resources needed are identified Time schedule Budget is set Budget approved: Business case updates Work process improvement teams are established Preliminary measures of success established BUY IN, WORK PLAN, MANAGING EXPECTATIONS Planning

9. Actions Current state: Map roles to existing processes Map people to roles Define system changes System disconnects and shadow systems Future state: Legacy system interface Define need for for shadow system, e.g., work around or temporary systems and when they will expire Benchmark for best practices Map roles to ERP processes Map people to roles Work flow analysis Pilot new work process Configuration changes needed to eliminate shadow or work around systems Set future state performance metrics Train managers and supervisors in changes required to reach future state, costs benefits impact on personnel and consequences Assess training needs (see training brochures) Update business case Configure ERP system: Test/validate; Deploy Results/Outputs Current and future state defined People assigned to roles and roles to process Consensus and buy in on work changes, personnel issues and solutions Performance improvements identified and accepted by process owners, senior managers, managers and supervisors Training plan established Deployment plan established and agreed upon: Department Timing Business case updated Planning Work Process Breakdown WORK PROCESS BREAKDOWN

10. Actions Communicate the big picture The business case, broad brush changes What will happen - timing How to get help and support Performance expectations Help desk support is activated: Super users available for staff support Implement training on new systems: Classroom Computer-based Go live date: Identify configuration changes needed to eliminate shadow or work around systems Change over to new work processes Feedback from Managers and Supervisors One-on-one training HR intervention Track progress and status Online auxiliary support functions in place Chat rooms Results/Outputs ERP system live End users possess core ERP skills Workforce takes ownership of business/ERP initiatives Progress to future state on plan Project is on time and on budget Performance metrics achieved Shadow systems expiration date achieved Information accuracy meets expectations Planning Work Process Breakdown Deployment DEPLOYMENT AND TRAINING

11. Actions Establish work process improvement teams Charter Goals Work processes Continuous benchmarking comparison with process owners from other companies Establish internet/intranet vehicle for best practice sharing Link results to individual performance appraisals Provide training on an ongoing basis Super users Tech support New employees Internet/Intranet Posting of problems, questions Posting of solutions Posting of upcoming training programs Results/Outputs Number of end users reaches or exceeds goal Deeper level benefits and capabilities of ERP system is realized Business case is exceeded Ongoing training is established Benchmarking performed to evaluate performance CONTINUOUS IMPROVEMENT Planning Work Process Breakdown Deployment Continuous Improvement

12. CONCLUSION WJ Murray & Associates will facilitate a successful ERP implementation through validating and integrating the new business processes, ERP software, supporting technology, processes and systems security, and organizational infrastructure and workforce changes People Processes Technology