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Five Key OCM Challenges with ERP Implementations

Five Key OCM Challenges with ERP Implementations. Eric Kimberling President and Chairman Panorama Consulting Solutions. www.Panorama-Consulting.com Phone: 720-515-1ERP Twitter: @erickimberling. Agenda. 1. 2. ✓. Brief Introduction of Panorama Consulting . Purpose of the Webinar. 6. 3.

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Five Key OCM Challenges with ERP Implementations

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  1. Five Key OCM Challenges with ERP Implementations Eric Kimberling President and Chairman Panorama Consulting Solutions www.Panorama-Consulting.com Phone: 720-515-1ERP Twitter: @erickimberling

  2. Agenda 1 2 ✓ Brief Introduction of Panorama Consulting Purpose of the Webinar 6 3 ERP Implementation CSFs OCM Tools to Mitigate the Challenges 4 Five Common OCM Challenges Questions and Answers 5

  3. About Panorama Consulting Solutions

  4. Some of Our Clients

  5. Some of the 150+ different ERP software packages we have evaluated and implemented for our clients Broad and Deep ERP Expertise

  6. Agenda 1 2 Brief Introduction of Panorama Consulting Purpose of the Webinar ✓ 6 3 ERP Implementation CSFs OCM Tools to Mitigate the Challenges Five Common OCM Challenges 4 Questions and Answers 5

  7. Purpose of this Webinar • To compare the benchmarks from ERP projects that succeed vs. from those that fail • To discuss ERP Implementation CSFs (Critical Success Factors), especially in OCM • To discuss five common OCM challenges • To recommend OCM tools and approaches to deal with these challenges

  8. OCM Definition • Organizational Change Management supports and compliments the project management team as they focus on the technical implementation of the ERP solution • The OCM team assesses, plans and directs actions designed to ensure a successful human interface during and after the ERP project • The human interface includes system users and non-users • It includes both internal and external constituents • It includes training, communications, evaluation, development, reporting and any other investment in human capital

  9. Guiding Philosophy • Software does not deliver benefits or performance improvements – people do • OCM is therefore not optional on an ERP project, it is an integral Critical Success Factor (CSF) • The orientation of OCM is toward people • The foundation principles for effective OCM are alignment and accountability

  10. Agenda 1 2 Brief Introduction of Panorama Consulting Purpose of the Webinar 6 3 ✓ ERP Implementation CSFs OCM Tools to Mitigate the Challenges 4 Five Common OCM Challenges Questions and Answers 5

  11. Top Reasons for ERP Failures • Lack of purpose for implementing ERP • Not going into the project with “eyes wide open” • Lack of executive and management buy-in • Not leveraging the “A-Team” from the business • Not choosing software that is aligned with the business and key requirements • Misalignment between software configuration and business processes/workflows • Lack of effective OCM and training • Weak internal and external project management • Underdeveloped business case to manage business benefits Items in blue are directly or indirectly mitigated by an effective ERP OCM methodology

  12. Top ERP Implementation Challenges Source: Panorama’s 2011 ERP Report

  13. Why the Need for ERP OCM • ERP typically affects an entire organization, no matter how large or small the company • As a result of ERP, end users are often overwhelmed with changes to their jobs, including: • A new system to perform their day-to-day jobs • New processes and way of doing business • More exposure to and interaction with new business processes and data • People cannot embrace what they don’t understand. OCM addresses this through communication. • Need to balance between the need for OCM and: • Appropriate timing for messages (e.g. layoffs) • Working within the constraints of budget, time/duration, people, etc.

  14. Why the Need for ERP OCM • Employees about to migrate to ERP need to be presented with information and knowledge to ease the transition • More than just training them how to use ERP • In addition to system training, employees also need to understand: • Why the organization is switching to ERP • How and when ERP will affect their jobs • How ERP will improve their jobs (what’s in it for me?) • How ERP will make the overall company more effective

  15. Truth • Full Disclosure • Open Dissent • Accountability • R&R Clarity • Consequences • Leadership • In Fact • In Appearance • Engagement • Participation • Priority OCM CSFs • Alignment • Goal Alignment • Action Coordination

  16. Agenda 1 2 Brief Introduction of Panorama Consulting Purpose of the Webinar 6 3 ERP Implementation CSFs ✓ OCM Tools to Mitigate the Challenges 4 Five Common OCM Challenges Questions and Answers 5

  17. Five Common OCM Challenges • The Conspiracy of Silence • We Go-Live When ?!?! • Time to Process • Bottlenecks • Walking the Talk

  18. Five Common OCM Challenges The Conspiracy of Silence Challenges • No open dissent • Hostile withholding of information • Passive aggression or covert resistance • Procrastination and/or continuous crisis as cultural norms Mitigation Strategies • Look for the origin • Create a safe place to share • Identify the sources and try to turn them • Confront resistance and deal with it • Consequences for non-participation

  19. Five Common OCM Challenges We Go-Live When ?!?! Challenges • Limited time to accomplish essential OCM tasks • Not enough time to do it right (plenty of time to do it over) • Flexing scope rather than go-live date Mitigation Strategies • Resolve competing priorities • Do critical path planning • Prepare and follow testing scripts • Have a “Plan B”

  20. Five Common OCM Challenges Time to Process Challenges • Late, incomplete, inadequate communication with the organization • No time to process • No time to respond • Loss of confidence and engagement Mitigation Strategies • Communicate early and often • Promote inbound communication; 1-on-1s, stand up/town hall meetings • Respond to feedback • LISTEN, LISTEN, LISTEN

  21. Five Common OCM Challenges Bottlenecks Challenges • Single group of multipurpose resources • Pinch points in the process • Consolidating power and control, losing quality and efficiency Mitigation Strategies • Separate technical and OCM core teams • Segregate and articulate responsibilities • Position OCM in an integral, helping role

  22. Five Common OCM Challenges Walking the Talk Challenges • Communicating priorities and following through • Sheltering core team resources • Resolving competing priorities Mitigation Strategies • Look for an excuse to reinforce the message • Make the hard choices • Remember that a picture is worth a thousand words, so is a decision

  23. Agenda 1 2 Brief Introduction of Panorama Consulting Purpose of the Webinar 6 3 ERP Implementation CSFs ✓ OCM Tools to Mitigate the Challenges Five Common OCM Challenges 4 Questions and Answers 5

  24. OCM Tools The Conspiracy of Silence • Organizational Readiness Assessments • Online Surveys • Focus Groups • 1-on-1s We Go-live When?!?! • Change Impact Assessment (CIA) • Training Needs Analysis (TNA)

  25. OCM Tools Time to Process • Communication Plan • OCM Charter Bottlenecks • RACI Chart (Responsible, Accountable, Consulted, Informed) • OCM Charter Walking the Talk • Milestones & Metrics Charts

  26. OCM Tools

  27. OCM Work Streams

  28. OCM Work Streams

  29. Summary of Lessons Learned • OCM can be the difference between success and failure on an ERP project • OCM can deliver on-going benefits to organizations, both for ERP and creating culture change • It is important to keep your eyes (and ears) wide open during the process • Independent and external expertise can support the technical implementation and help avoid some of the common OCM pitfalls

  30. Five Key OCM Challenges with ERP Implementations Questions ? Eric Kimberling President and Chairman Panorama Consulting Solutions Eric.Kimberling@panorama-consulting.com 720-515-1ERP Twitter: @erickimberling Brian Potts Sr. Manager, Business Development Panorama Consulting Solutions Brian.Potts@panorama-consulting.com 720-515-1ERP

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