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Atricle Dump - The 12 Cardinal Sins of ERP Implementation
During my career as a manager and since I myself became a consultant in 1987, I have had many colleagues and acquaintances move into the consultancy profession. Sometimes this move was by choice as a genuine career move. In the late 90s however, the proliferation of consultants was exacerbated by the downsizing of organisations and so, people who had been “cut” and who were unable to find a similar role in another organisation tried the consulting path – often with little success and a great deal of pain.The following suggestions on becoming a consultant have been developed as a result of my own experience, my advice sessions with colleagues starting out on their consultancy career journey and the lessons I have learned from watching people either succeed or fail to make the grade as a consultant. My belief is that there are at least four things that one must do to develop a successful career as a consultant:Firstly, decide on an area of expertise and "research it to death!". Become a real "expert" in your chosen field. Organisations are looking for people as consultants to fill a gap in their skill base, knowledge, expertise etc and that's why they go to a consultant (otherwise they would find the expertise internally).When starting out as a consultant, it's tempting to be able to say "Yep, I can do that" when a prospective client asks for help, even though you may not have a great deal of expertise in that area. Sometimes the need to keep an income coming in can be a very tempting reason to take these type of
(1) Lack of Top Management Commitment
The propensity of top management to delegate the oversight of an ERP implementation to lower management levels often results in (1) being "out of touch" with critical events, or (2) the lack of understanding of the size, scope, and technical aspects of the project, and subsequently, the lack of proper commitment of time and resources required for a successful implementation. The result is a failure waiting to happen.
(2) Inadequate Requirements Definition
Surveys have shown that inadequate definition of functional requirements accounts for nearly 60% of ERP implementation failures. This is simply a matter of not comprehensively and systematically develo
Benefits are important to everyone. Everything we do, we do for a reason. Most of the reasons we do things, or benefits we desire, can be summed up in one word: SUCCESS. Success is a fascinating word. It is something that everyone wants. Is there anyone out there that does not want success? It is the Great American dream. It is the reason we work, learn and achieve. As you look at this word, what does it mean to you?As you begin to look at success and examine the many things you have listed, you begin to realize that success is not any one thing. It is not a point out in space or a rung on a ladder, but it is a combination of things, a way of living, a never ending journey. If you look at it this way, you can begin to define it as continually achieving predetermined goals.In other words, a successful life is based on goals and planning. However, it has been my experience that for the most part, people spend more time planning for a two week vacation than they do planning their business and personal life.The exciting part of this concept is that it means that the moment you define what success is to you and the moment you begin to work toward its achievement, you become successful. With that in mind, let’s plan for your future!The first step is to see what you want to become. The vision is going to guide all of your daily decisions with your business and life. An effective vision encompasses all areas of your life. The different areas to think about are: community, health/fitness, work/career, p
Enterprise Resources Planning (ERP) is an outgrowth of Material Requirements Planning (MRP) initiated in the 1970's as a new computer-based approach to planning and scheduling of material requirements and inventory, featuring the time-phased order point. MRP evolved to MRP II (Material Resources Planning) the "closed loop" process, to Business Requirements Planning (BRP) and eventually to ERP. As MRPII came into vogue in the late 1970's and early 1980's, software companies began to develop software packages around MRPII concepts.
At the same time, research of integrated data bases was in progress at a university, and out of that research emerged data base management systems (DBMS). One of the earliest successful commercially-produced data base management systems was IDMS (for IBM-based systems) and DBMS (for DEC-based systems) produced by Cullinane, who's company name was later changed to Cullinet. IMS, a structured data base management system for high transactions, was another data base management system produced by IBM.
The idea of the integrated data base as the engine for fully integrated software was probably one of the greatest outgrowths of Ollie Wight's and Dave Goddard's MRP. Eventually, the acronym ERP was conceived to represent what had already been developed by software companies.
The early software packages were developed by way of a transactional approach, and were highly unfriendly to a user. With the advent of the personal computers, the development of Microsoft's Windows NT, and the mid-range IBM AS/400 computer, client-server systems began to emerge. Windows, used as the base operating system, allowed software packages to become more and more user-friendly.
Today, ERP systems have proliferated extensively, and have reached a stage where development has become industry specific. Thus it is plausible to search for an ERP package developed for one's specific industry idiosyncracies.
The Issues
The biggest single issue in ERP is the failure of a successful implementation. It is mind-boggling to continually encounter companies who make major ERP gaffes in this day and age, especially since most of the trials and tribulations of MRPII implementation were suffered and learned from in the early 1980's with alpha, beta and gamma releases.
So what constitutes failure? Several thing come to mind:
(1) Not making the promised return on investment,
(2) Inordinately extending the implementation schedule and start-up date,
(3) Running over budget by unconscionable variances,
(4) Grinding the organization to a crawl pace, or the severest of all consequences,
(5) Stopping production and/or not delivering orders to your customers.
Industry statistics show that >60% of ERP implementation starts historically fail. Does this mean that you are doomed from the start? Of course not, if you learn from the mistakes of others. So the pertinent question is what are the main causes of ERP failure and what can be done to prevent this from happening to you?
The 12 Cardinal Sins of ERP Implementation
There are twelve major reasons for why companies get bogged down or fail in implementing ERP.
(1) Lack of Top Management Commitment
The propensity of top management to delegate the oversight of an ERP implementation to lower management levels often results in (1) being "out of touch" with critical events, or (2) the lack of understanding of the size, scope, and technical aspects of the project, and subsequently, the lack of proper commitment of time and resources required for a successful implementation. The result is a failure waiting to happen.
(2) Inadequate Requirements Definition
Surveys have shown that inadequate definition of functional requirements accounts for nearly 60% of ERP implementation failures. This is simply a matter of not comprehensively and systematically develop
Recently I read an article about tipping and it triggered me to elaborate on the subject, because it offers many possibilities.In this view the idea of tipping is compared with performance management. The client is the one who evaluates the performance. And as tipping is often used in restaurants and bars, the client is the customer who is receiving the service.When comparing the tip as an incentive for the performance the first question to answer by the one who is offering the service, or who is evaluating the service is: “how do you do your job?”One. On average. This means that – in a normal distribution - nearly 70 percent of the cases the client receives an average attention. This is nothing more than the average (attention) of all people who serve in restaurants. Should the receiver of the service tip in this case?Two. Below average. Same setting, but the attention is below every expectation. In this case the client should not receive a tip, but issue a complaint. It will probably do neither, but the guest in question will probably not return.Three. Your service if above expectations. Should you receive a tip? Yes, but remember that this view on tipping is highly dependent on culture. In performance-cultures you should receive a tip, otherwise you won’t have to.This view on tipping is probably not extensive enough, but it serves as a good starting point.Another interesting view would be the parallel of give-and-take tips in the area of article marketing. If you apply the same performa
The idea of the integrated data base as the engine for fully integrated software was probably one of the greatest outgrowths of Ollie Wight's and Dave Goddard's MRP. Eventually, the acronym ERP was conceived to represent what had already been developed by software companies.
The early software packages were developed by way of a transactional approach, and were highly unfriendly to a user. With the advent of the personal computers, the development of Microsoft's Windows NT, and the mid-range IBM AS/400 computer, client-server systems began to emerge. Windows, used as the base operating system, allowed software packages to become more and more user-friendly.
Today, ERP systems have proliferated extensively, and have reached a stage where development has become industry specific. Thus it is plausible to search for an ERP package developed for one's specific industry idiosyncracies.
The Issues
The biggest single issue in ERP is the failure of a successful implementation. It is mind-boggling to continually encounter companies who make major ERP gaffes in this day and age, especially since most of the trials and tribulations of MRPII implementation were suffered and learned from in the early 1980's with alpha, beta and gamma releases.
So what constitutes failure? Several thing come to mind:
(1) Not making the promised return on investment,
(2) Inordinately extending the implementation schedule and start-up date,
(3) Running over budget by unconscionable variances,
(4) Grinding the organization to a crawl pace, or the severest of all consequences,
(5) Stopping production and/or not delivering orders to your customers.
Industry statistics show that >60% of ERP implementation starts historically fail. Does this mean that you are doomed from the start? Of course not, if you learn from the mistakes of others. So the pertinent question is what are the main causes of ERP failure and what can be done to prevent this from happening to you?
The 12 Cardinal Sins of ERP Implementation
There are twelve major reasons for why companies get bogged down or fail in implementing ERP.
(1) Lack of Top Management Commitment
The propensity of top management to delegate the oversight of an ERP implementation to lower management levels often results in (1) being "out of touch" with critical events, or (2) the lack of understanding of the size, scope, and technical aspects of the project, and subsequently, the lack of proper commitment of time and resources required for a successful implementation. The result is a failure waiting to happen.
(2) Inadequate Requirements Definition
Surveys have shown that inadequate definition of functional requirements accounts for nearly 60% of ERP implementation failures. This is simply a matter of not comprehensively and systematically develo
We have all heard in recent years that the need for a substantive policy of conducting pre-and post-employment background checks exists in more than just defense contractor and fiduciary-based enterprises. Today, with the overwhelming preponderance of employer liability litigation, and with negligent hiring being the focal point of round-table discussions of some of the plaintiff’s firms, the need for thorough background checks has been substantiated. This is a common sense perspective, not only from the standpoint of getting the best possible people for the job, but also to protect a company form this type of litigation.In 1979, our company set out to learn how to not only provide the best possible background checks, but also to determine just where “factual employment screening” would fall in the scheme of things. To understand why “screening” is where it is today, one needs a little history of the subject.In the beginning, screening usually started with the security department. These were typically highly qualified, deeply motivated, wholly energetic, recently retired law enforcement professionals who were completely inundated. After being given the entire responsibility for the safety and security of the company, its executives and their families, they were given the task of qualifying those who would pass through the gates each day as employees. Since these individuals were for the most part “old boys,” they sometimes used, in today’s politically correct terminology, “improper” methods of “checking out” the applicants.
Today, ERP systems have proliferated extensively, and have reached a stage where development has become industry specific. Thus it is plausible to search for an ERP package developed for one's specific industry idiosyncracies.
The Issues
The biggest single issue in ERP is the failure of a successful implementation. It is mind-boggling to continually encounter companies who make major ERP gaffes in this day and age, especially since most of the trials and tribulations of MRPII implementation were suffered and learned from in the early 1980's with alpha, beta and gamma releases.
So what constitutes failure? Several thing come to mind:
(1) Not making the promised return on investment,
(2) Inordinately extending the implementation schedule and start-up date,
(3) Running over budget by unconscionable variances,
(4) Grinding the organization to a crawl pace, or the severest of all consequences,
(5) Stopping production and/or not delivering orders to your customers.
Industry statistics show that >60% of ERP implementation starts historically fail. Does this mean that you are doomed from the start? Of course not, if you learn from the mistakes of others. So the pertinent question is what are the main causes of ERP failure and what can be done to prevent this from happening to you?
The 12 Cardinal Sins of ERP Implementation
There are twelve major reasons for why companies get bogged down or fail in implementing ERP.
(1) Lack of Top Management Commitment
The propensity of top management to delegate the oversight of an ERP implementation to lower management levels often results in (1) being "out of touch" with critical events, or (2) the lack of understanding of the size, scope, and technical aspects of the project, and subsequently, the lack of proper commitment of time and resources required for a successful implementation. The result is a failure waiting to happen.
(2) Inadequate Requirements Definition
Surveys have shown that inadequate definition of functional requirements accounts for nearly 60% of ERP implementation failures. This is simply a matter of not comprehensively and systematically develo
When Keisha Case decided it was time to go back to work and join the legion of working mothers, it wasn’t whether or not to return that was the tough decision – it was what to do.“My decision to get back in the workplace was mostly financial but when I look back I realize it had much to do with my education, too,” said Keisha, a working mother of one and former globe-trotting student and educator. “I wanted to be able to contribute to our family income but still stay at home during the day with my son. Some of my suggestions got shot down by family but other ideas got a better response.”So Keisha began a job working from home managing a company called About Town Moms, a tight-knit organization that led moms and their wee ones on historical neighborhood walks, private museum tours and other cultural adventures. Then Keisha added another job to her already hectic day, delivering ads as a field representative for a company called News America; she landed the gig through SnagAJob.com.“The major challenge is time,” Keisha said of her new life. “I feel like I run around all day but by the end of the day I sleep really well knowing that I am helping my family financially, raising my son during the day and staying in the workforce. Many people call me a super mom but I have always been happiest when I feel like I’m helping others.”Keisha’s story is echoed around the country as moms look for jobs for reasons ranging from financial to self-improvement. And there’s one common theme among all these diff
(1) Not making the promised return on investment,
(2) Inordinately extending the implementation schedule and start-up date,
(3) Running over budget by unconscionable variances,
(4) Grinding the organization to a crawl pace, or the severest of all consequences,
(5) Stopping production and/or not delivering orders to your customers.
Industry statistics show that >60% of ERP implementation starts historically fail. Does this mean that you are doomed from the start? Of course not, if you learn from the mistakes of others. So the pertinent question is what are the main causes of ERP failure and what can be done to prevent this from happening to you?
The 12 Cardinal Sins of ERP Implementation
There are twelve major reasons for why companies get bogged down or fail in implementing ERP.
(1) Lack of Top Management Commitment
The propensity of top management to delegate the oversight of an ERP implementation to lower management levels often results in (1) being "out of touch" with critical events, or (2) the lack of understanding of the size, scope, and technical aspects of the project, and subsequently, the lack of proper commitment of time and resources required for a successful implementation. The result is a failure waiting to happen.
(2) Inadequate Requirements Definition
Surveys have shown that inadequate definition of functional requirements accounts for nearly 60% of ERP implementation failures. This is simply a matter of not comprehensively and systematically develo
When I met my husband Blair Osborn in 1975, I had no idea that our chance encounter would fuel a 30-year partnership in life and business.As marriage and business partners, we understand that stress, aches, pains, and other consequences of busy lives give us all pause to seek more relaxation and rejuvenation in our lives. Making time for both is essential for us and the customers we are committed to serve.Through countless ups and downs over the years, there are several skills vital to the smooth functioning of any partnership. In no other endeavor is it more important to understand and master these skills than in a business relationship with your spouse. To follow are our hard won lessons that will serve others seeking to get into business with a marriage partner without sinking either the marriage or the business in the process.Commitment is the cornerstone. When Blair and I started our business, most people thought we were crazy. Still, we remained committed to our mission and vowed to stay with it. We quickly discovered that running a business required knowledge and resources we hadn’t yet acquired. We were generalists on a straight up learning curve to acquire instant expertise in everything.Our success also required a large amount of start-up capital. Acquiring these funds was risky and stressful. Other obstacles like emerging competition could have easily prompted us to throw in the towel, yet our commitment kept us afloat. Woody Allen once quipped that 80% of success is just showing up. Blair
(1) Lack of Top Management Commitment
The propensity of top management to delegate the oversight of an ERP implementation to lower management levels often results in (1) being "out of touch" with critical events, or (2) the lack of understanding of the size, scope, and technical aspects of the project, and subsequently, the lack of proper commitment of time and resources required for a successful implementation. The result is a failure waiting to happen.
(2) Inadequate Requirements Definition
Surveys have shown that inadequate definition of functional requirements accounts for nearly 60% of ERP implementation failures. This is simply a matter of not comprehensively and systematically developing a quality set of functional requirements definitions. This leads to the second greatest cause of ERP implementation failures: poor package selection.
(3) Poor ERP Package Selection
Poor package selection occurs when a company has inadequately developed functional requirements definitions. It also occurs when staff members assigned to ERP projects do not take the time to run the screens of the new system, as they would during their daily work tasks, to find out if the software package features are adequate for their needs.
Another reason we have found is executives, familiar with an ERP system from a last job they held, implement the same system in their new company without defining functional requirements. We have also encountered companies who made major gaffes by selecting a package at the top levels of a company without intimately knowing its characteristics. What often results from this is the ERP package doesn't fit the organizational needs, or that the package selected takes longer to process daily work tasks.
We have also seen executives select a distribution package for a manufacturing environment, or a manufacturing package for a distribution environment, for obscure reason, such as liking one salesman over another.
(4) Inadequate Resources
The third greatest reason for ERP implementation failures is inadequate resources. Many companies will attempt to "save dollars" by doing everything on an overtime basis, whether or not there are adequate skills within the company, extending individual work loads to 150%. This approach can be a "kiss of death" for the program. Time and time again we run across this mistake in ERP implementations. The financial and emotional drain of what seems sometimes to be perpetual extensions, reschedules and delays of implementations takes its toll. People burn out after having put in extensive hours over a long period of time.
(5) Resistance to Change/Lack of Buy-in
The lack of a change management approach as part of the program can prevent a program from succeeding. Resistance to change is quite often caused by (1) A failure to build a case for change, (2) Lack of involvement by those responsible for working with changed processes (3) Inadequate communication (4) Lack of visible top management support and commitment, and (5) Arrogance. A lack of buy-in often results from not getting end-users involved in the project from the very start, thereby negating their authorship and ownership of the new system and processes.
(6) Miscalculation of Time and Effort
Another cause of ERP implementation failure is the miscalculation of effort and time it will take to accomplish the project. Companies who treat an ERP selection, evaluation and implementation comparable to buying a washing machine are doomed to failure.
(7) Misfit of Application Software with Business Processes
One of the main causes of ERP implementation failure is the misfit of application software with the company business processes. This failure -- to examine underlying business process flaws, and integrate the applications with the business processe
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