Presentation on theme: "ERP Implementation Best Practices : A Success Story Copyright, Roger Rigelhof. This work is the intellectual property of the author. Permission is granted."— Presentation transcript:
ERP Implementation Best Practices : A Success Story Copyright, Roger Rigelhof. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.
Implementation Best Practices EDUCAUSE –A Survey found similarities and differences in CFOs’ and CIOs’ perceptions of Best Practices Pollyanne S Frantz, Arthur R Southerland and James T Johnson, ERP Software Implementation Best Practices, EQ, 25 (4), 2002
Agenda The ERP Implementation Implementation Best Practices –How they were viewed by CIO and CFO –How we implemented them –Effectiveness (subjective) What is success, anyway?
ERP Implementation McGill University, Montreal Canada –30,000 students –Research intensive SCT Banner –Finance June 2000 –General Person Aug 2001 First module for Student –HR/Payroll January 2002 –Student Web Registration April 2002
Implementation Best Practices Definition –A best practice is what results when qualitative comparisons are made between similar organizations business practices. OR –A best practice is any activity that an organization finds successful in accomplishing a task.
Best Practice 1 Executive management should endorse the ERP project. –High ranking by both CFO and CIO (mean above 4.6 on a 5 point scale).
Best Practice 1 Implementation Project Sponsors – VPs –Provost and VP Academic –VP Finance –Deputy Provost and CIO Subjective Assessment: Essential to success
Best Practice 2 Executive management should remain actively involved throughout the implementation. –Mean ranking below 4.6 on a 5 point scale
Best Practice 2 Implementation Executive Policy Committees –VP, AVP, DP-CIO, Director / Registrar, Project Director and Project Manager –Project Governance
Project Governance Project Manager Project Services Team Project Manager HRIS/Payroll Team Project Manager SIS Team Project Manager FIS Team CSA FIS PolicyHR Policy SHARD SIS Policy CIO Project Sponsor HRPM PMG Project Director
Best Practice 3 ERP software implementation responsibilities should be shared between the information technology department and functional areas where the software is being implemented. –High ranking by both CFO and CIO
Best Practice 3 Implementation Policy committees involved senior management in the implementation Implementation teams consisted of functional and IT people Subjective Assessment: Essential
Best Practice 4 Executive management should be cognizant about the institution’s ability to adapt to the organizational changes that occur when ERP software is implemented. –High ranking by both CFO and CIO
Adapting to an ERP “Go-live” Productivity 18 Months ? ImplementationERP “Shock” Time Benefits 3 month preparation period
Implementation ERP Shock Relief SIS and FIS specialists Funded by IST, coordinated by project manager and training specialist Hired by colleges to support Faculty Training, liaison, advocates Subjective evaluation: Important
Best Practice 5 A project manager should be assigned full-time to the implementation. –High ranking by both CFO and CIO
Best Practice 5 Implementation That would be me! – An Academic with some previous experience with projects Subjective Assessment: Essential
Best Practice 6 The project team composition should represent all functional areas where the software will be implemented. –Perceptual difference between CFOs and CIOs –CIOs significantly more likely to agree
Best Practice 6 Implementation Finance System: –Core team of managers from Accounting Broad consultation within the entire financial community – esp for CofA –Functional specialists in Purchasing, AP, AR, Budgeting, Grants
Best Practice 6 Implementation Student System –Managers from Admissions, Registrars, Student Records Officers from Colleges of Arts, Science, Grad Studies –SROs used to test “mock” registration –Students used for communication plans etc.
Best Practice 6 Implementation HR/Payroll –HRPMC (HR Project Management Committee) met regularly. Subjective Assessment: Essential
Best Practice 7 Project team members’ normal job responsibilities should be reassigned to other employees for the project duration. –Perceptual difference between CFOs and CIOs –Lowest ranking by CFOs
Best Practice 7 Implementation Temporary promotions and backfilling Replacements were trained before Implementation started Finance and HR systems –Managers spent 4 days/week at Project HQ Student System –100% at Project HQ Subjective Assessment: Essential to do one or the other. Advantages/disadvantages either way.
Best Practice 8 Employees should receive training on how to work as a team on a project before implementation begins. –Perceptual difference between CFOs and CIOs –CIOs significantly more likely to agree
Best Practice 8 Implementation Partially implemented –We did a relatively small amount of team training –In Finance and HR we had existing teams
Best Practice 9 The institution should retain ownership of the implementation process. –High ranking by both CFO and CIO
Best Practice 9 Implementation Project Definition Document Consultants were used, but the emphasis was on skills transfer
Best Practice 10 A separate dedicated work environment specifically created for the project team aids implementation. –Perceptual difference between CFOs and CIOs –CIOs significantly more likely to agree
Best Practice 10 Implementation Project headquarters –Functional and technical users brought to a work environment specifically dedicated to the project team and to building the system. Subjective Assessment: Essential
Best Practice 11 All employees who will use the software should receive thorough training. –High ranking by both CFO and CIO –Perceptual difference between CFOs and CIOs –CIOs significantly more likely to agree
Best Practice 11 Implementation Training room and training team (approx 6 trainers – as many as 30 at times!) Basic Navigation course plus: –Finance: 5 courses –HR: 3 courses –Student: 23 courses 4,840 Employees attended 1 or more sessions As of May 2003: –Total number of sessions:1,166 –Total number of attendees:7,094
Best Practice 11 Implementation Detailed instructions for each and every form Banner Help Desk –FAQs, How-tos Hands-on obligatory sessions –You only get access to the forms for which you have had training Drop-in labs (bring in your real work)
Best Practice 12 Executive management should help employees network with peers at other institutions undergoing similar implementation initiatives. – Mean ranking below 4.6 on a 5 point scale
Best Practice 12 Implementation User Group Conferences Summit Active participation Subjective Assessment: Improves quality and efficiency of the implementation
Best Practice 13 It is often necessary for an institution to change its administrative processes to fit the software. –Mean ranking below 4.6 on a 5 point scale
Best Practice 13 Discussion Vanilla or Vanilla with sprinkles System must be acceptable to end users HR, Finance more likely to change processes than Student Records
Best Practice 14 Outside consultants can facilitate implementation efforts. –Mean ranking below 4.6 on a 5 point scale
Best Practice 14 Implementation Vendor Consultants for hands-on training of implementation team, technical team Consultants were used to facilitate and validate Process Improvement Assessment Total Consulting: About 4,000 hours Subjective assessment: Essential
Best Practice 15 Implementation information should be continuously communicated to the campus community. Mean ranking below 4.6 on a 5 point scale
Best Practice 15 Implementation BannerSpeak – quarterly newsletter Website Information sessions before each go-live Information reports to Deans, Senate Committee on Student Affairs, Senate Committee on Information Systems, Computer Users Committee Subjective Assessment: Essential
Best Practice 16 Conversion of data from the old software system to the new should begin early in the implementation process. –Mean ranking below 4.6 on a 5 point scale –Lowest ranking by CIOs
Best Practice 16 Implementation For student system: –Converted all electronic “person record” – 450,000 records –Converted all electronic Student records - 250,000 Financial data was partially converted HR Legacy system ( a relatively new system) was converted.
What is success, anyway? Possible Definition Success is realizing your vision.
What is success, anyway? We stated our vision in a Project Definition Document in 1999: Our vision is of a McGill in which the constituents - faculty, students and support staff, have direct access to secure data, and the means to accomplish certain administrative tasks. Thus students and staff would maintain the appropriate parts of their own records directly. Students, for example, would apply to McGill, be able to track their applications, register for their courses, request student aid, examine their records, via a form of universal access such as the Web. Academic staff would receive course rolls, submit marks, and receive support for academic advising via the Web.
What is success, anyway? Possible criteria –On time, on budget Only if the scope doesn’t change! Only if Technology doesn’t change! –Are all end users happy Unthinkable at an Institution where critical thinking is valued –Are they using the system? If yes, the implementation is a success!
Banner Stats Cumulative Client User Logins: 1,165,323 Distinct Client Users : 2,695 Current client logins (11:00 Monday): 492 Distinct Web Users: 78,891 Distinct student registrations: 46,882 Cumulative course registrations: 380,779 Current web logins (11:25 EST): 269