In our prior post, we introduced you to Panorama Consulting’s 2012 ERP study, which reported that roughly half of all ERP projectS go over budget, over time, or both. In our prior post we listed 3 key action items (“Benefits Realization Activities”) suggested by their staff. Today, we’ll cover the remaining 7:
4. Operational Metrics and Benchmarks: After you develop your high-level business metrics (key performance indicators, or goals) translate those metrics into operational numbers to which executives are held accountable.
5. Design Detailed Business Processes: This process is begun during the initial Business Process Analysis. Once that’s done, take this modeling to the next level and develop more detailed documentation to ensure that teams clearly understand their roles, responsibilities and key processes.
6. Group Metrics, Processes and Benchmarks: While departmental metrics are useful, these must be translated to an individual level to gauge performance person-by-person.
7. End-User Training: Use the process models detailed above to develop end-user training that not only helps employees understand how to use the new technologies but also how to perform new processes and job functions. Many training programs underestimate the value of the latter.
8. Benefits Measurement: Here’s where real value is found. Measure actual benefits after implementation and compare the results to projected departmental and individual metrics to identify any potential benefits gaps. But don’t expect full benefits to be achieved for some time.
9. Root Cause Analysis of Benefit Gaps: Work to understand why gaps exist between potential and actual benefits realization. Are workers reverting to workarounds because they understand how to use the technology, but not the importance of doing so?
10. Implementation of Corrective Action: Follow-up training, enhanced communications, focus groups and process control and governance are some common ways to bridge gaps and enhance ROI. Remember, it’s part of your Lean process, and thus, it’s all about continuous improvement.
Apply this thinking and these action items as you roll out your ERP implementation and you’ll be making serious inroads toward improving your ERP return on investment. Better still, keep it up, and you’ll be maximizing that return for years to come.
As we noted previously, the Panorama White Paper can be found here (registration may be necessary).