systematicHR

Eric Kimberling recently wrote about increasing success factors in an ERP implementation ((Thanks to the Oracle Apps Blog for pointing this one out.)) Each section has Eric’s personal commentary, but here’s the list without it. Link to his article for the full version please.

1. Focus on business processes and requirements first.
2. Focus on achieving a healthy ERP ROI (Return on Investment), including post-implementation performance measurement.
3. Strong project management and resource commitment.
4. Commitment from company executives.
5. Take time to plan up front.
6. Ensure adequate training and change management.
7. Make sure you understand why you’re implementing ERP. ((Kimberling, Eric, February 20, 2006. “How To Increase ERP Success.” Retrieved from http://blogs.ittoolbox.com on March 19, 2006.))

As usual, here’s my commentary – the reordering of these success factors is intentional.

1. Make sure you understand why you’re implementing ERP. We’ve written a lot about point solutions here at systematicHR.com. There are tradeoffs whether you go with an integrated ERP, or if you go with a core HRMS plus point solutions. How you deploy specific systems and why is core to your strategy.
2. Commitment from company executives. Executive sponsorship was almost #1 on my list. Too many projects fail due to the lack of good sponsorship from the top. As you implement ERP HRMS (core, talent, recruiting, learning…) you are touching enough of HR that you really need the top supporting you.
3. Take time to plan up front. I’ll be honest. Numbers 3, 4, and 5 were tied on my list. Planning is obvious, not just in terms of the project plan, but aligning process with your strategies. All too often planning means what modules go live when. Implementations need to ask the critical questions of why and how the new functionality and processes affect the core strategy.
4. Strong project management and resource commitment. Commit your core resources full time and don’t underestimate the resource requirements. Not only do you need some of your best resources, but you need them thinking about the implementation full time – not their regular jobs.
5. Ensure adequate training and change management. Training isn’t so high on my list unless you’re calling it a part of your change management strategy. All change management should focus on adoption of the new systems, not just from a HR user perspective, but from all employees and managers who will be touching self service processes. Don’t get caught up in thinking that training is enough.
6. Focus on achieving a healthy ERP ROI (Return on Investment), including post-implementation performance measurement. ROI is important, but if you don’t get #1-5 right, ROI will never happen. It’s still important though – if you don’t measure it, nobody will believe you and all you are left with is better process. Keep in mind that the measurement is not only after implementation. You have to understand your environment before implementation or you won’t have anything to benchmark against. Understanding your current environment also allows you to identify the areas needing most attention.
7. Focus on business processes and requirements first. Why did I cross this out? See number 3. Don’t worry about what the “business process” and exactly how things route through the system. Instead, focus on your strategy furst and build process and requirements around that.