8 Steps to successful ERP Change Management

All implementation project managers must focus on people, processes and technology. It is the people aspect that is often the most complicated. Any enterprise software endeavor creates a wave of resistance. The difference between success and failure is determined by how you manage the change process.

There are many methods, but one useful method is the Kotter Change Management Methodology. This method was developed and documented by John Kotter, a noteable professor at the Harvard Business School. According to Mr. Kotter, the Eight Steps to a successful change are:

1. Create a Sense of Urgency
2. Pull Together the Guiding Team
3. Decide What you will do
4. Communicate for Understanding and Buy-in
5. Empower others to act
6. Produce Short-term wins
7. Don’t let up
8. Create a New Culture

His latest book, shown here uses a fable to illustrate how to manage change is a wonderful book that gives the high-level understanding of change management. Using a penguin colony in Antarctica as the setting, the author uses this analogy to any change occurring with groups of people. It is worth a read, but more importantly it is worth your project team reading and discussing together. Using the eight steps outlined above, with a cohesive understanding of how change affects teams, together you can undertake any enterprise software rollout.

Be sure to read John Kotter’s other books on Leading Change.

Simplifying IT

In this month’s Harvard Business Online, there is a fascinating article on how one bank in Japan rolled out a new business system successfully by breaking all the rules.  By adapting a modular approach and leveraging technologies such as the Internet, they were able to take a dying business and revamp it into a major player in their market.  The article requires accepting their terms of use, but is really worth reading for anyone who plans, manages, or deploys systems.

Radically Simple IT

By designing and deploying enterprise systems in a different way, Japan’s Shinsei Bank turned IT from a constraint into a launchpad for growth.

by David M. Upton and Bradley R. Staats

Enterprise IT projects—both custom and packaged “one size fits most” systems—continue to be a major headache for business leaders. The fundamental problem with these systems is that for the most part, they’re constructed using what programmer and open source champion Eric Raymond dubbed a cathedral approach. Like the great edifices that Europeans erected in the Middle Ages, enterprise IT projects are costly, take a great deal of time, and deliver value only when the project is completed. In the end, they yield systems that are inflexible and cement companies into functioning the way their businesses worked several years ago, when the project started. Despite recent improvements in the flexibility of packaged software, companies often find it exorbitantly expensive and difficult to modify their enterprise systems in order to exploit new business opportunities.

Read the full article here

7 Free and Indispensible ERP Sites you can’t implement without

When entering into an ERP selection and implementation, the more you understand what you are getting into, the better. We have collected a few key sites that give a great basis for understanding and are resources we turn to now and again. We have also conscientiously stayed away from vendor references. What we show below are references to help you before you start talking with vendors.

1. CIO.com ABC An Introduction to ERP – This is an detailed article on all facets of an ERP undertaking. Looking at the cost factors, the project aspects, and the realities of ERP.

2. The ePMbookThe FREE ePMbook by Simon Wallace is a great resource for project management concepts. Broken into two sections – the Day Job and the Night Job; the Day Job is an exhastive look at project management and the Night Job is a quick guide to concepts such as Program Management. Well worth a read.

3. Software Advice – This is a very detailed synopsis of various ERP, CRM, BI, and other enterprise solutions. The site goes into detail as to what the software is, who it is targeted at, and provides contact info for each of the vendors. Get free demos, information, and price quotes.

4. Bridgefield Group ERP/Supply chain Glossary – A detailed glossary of terms for ERP and the Supply Chain.

5. ERP @ IT Toolbox – A great collection of articles and information. There are also discussions and various white papers. Just be careful of all the vendor sponsored information.

6. ERP Graveyard – You can’t keep track of the players without a scorecard. This site sizes up the acquisitions and mergers of all the ERP companies. You will be surprised at the long list of players in the Graveyard Scorecard!

7. ERPandmore.com Books – If you are going to attempt an ERP roll-out, you will want to read even more in depth than even these brief articles.

Shaklee Cleans Up with SAAS

Software as a Service is an emerging method of utilizing software.  Rather than buying a license and installing it on your own servers, you, in a sense, lease it and access it via the web.  ERP vendor Netsuite is one example. CRM vendor Salesforce.com is another. 

The following article looks not only at how a company implemented SAAS, but did it as a complete strategy.  Up until now, only a particular application has typically been run as an outsourced web tool.  With the advent of Google Docs, Windows Live, and other forms of SAAS, companies may be outsourcing their entire IT software platform.  The next few years should be quite interesting…

Shaklee looks to the cloud to effectively align IT with business requirements.

Shaklee was green before green was cool. Now the company is applying that forward-thinking philosophy to SAAS.

Shaklee, based in Pleasanton, Calif., has been around for more than 50 years. What started with a vitamin formulation developed by Dr. Forrest Shaklee has evolved into a broad spectrum of all-natural cleaning, nutritional and skin-care products that have recently won accolades from no less than Oprah Winfrey and nods in Time, Woman’s Day and In Style, among many other magazines.

This is something of a resurgence for the company, which was taken private almost four years ago by Roger Barnett (now the company’s chairman and CEO) and private equity organizations. In 1982, Shaklee was a Fortune 500 company, but between then and 2004, when the company was acquired, Shaklee had been shrinking, according to the company’s CIO, Ken Harris.

Shaklee’s new owners brought in a management team to turn the company around, including Harris, who was formerly CIO of companies such as Gap, Nike and PepsiCo.

One key objective for the company’s new management was to make Shaklee relevant to a new generation of consumers, as well as to a new generation of independent sales representatives—the major channel through which Shaklee products are sold.   Read the rest of the article here.

Tags: SAAS, ERP, CRM, Software as a Service

What ERP info are you looking for?

ERPandmore.com has for the past couple years been your site for ERP, CRM, and PLM related information.  We try not to take a vendor slant at this information and have tried to focus in on process information. 

We now have Software Reviews  and are working on other useful things.  The key question though is what is it that you the readers want?  What type of questions do you have about ERP that we could answer?

Please comment on this post and help us to understand what would help you in better understanding your Enterprise Software applications.  Thank you.

Tags: , , ,