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GoodbyeMicromanagement
- 1. 1 Goodbye Micromanagement A HollandSystems whitepaper GOODBYE MICROMANAGEMENT Ensuring vision fidelity throughout your SAP project
- 2. 2 Goodbye Micromanagement If you’reconsidering a move to SAP, you know that big ERP projects have a dismal reputation. All too often, these endeavors begin as a dream of streamlined business processes and end as a nightmare of lost revenue, missed deadlines, cost overruns, and finger pointing. A dizzying number of large-scale IT projects are started each year, but a study by Gartner revealed that just three causes — functionality issues, quality issues, and substantially late delivery — are responsible for almost 50% of project failures. Here’s the puzzle — if we know those three factors so frequently cause failure, then why are they still so frequent? Functionality, quality,&late deliveryare responsiblefor 50%offailures. The answer is that they’re symptoms of a deeper problem, and that problem is a failure of vision. Even when the master plan is perfect, the vision behind it can get lost in translation as it is communicated down through an organization. Our goal is to demonstrate that today’s most popular ERP planning method is not only outdated, but also a contributing factor to these failures. It leaves team members with an unclear understanding of the project’s guiding vision, and causes needless confusion and re- work. We’ll describe a new methodology for planning, managing, and evaluating your SAP projects that keeps your team focused on the high-level vision. SYSTEMIC MYOPIA Our goal is to demonstrate that today’s most popular ERP planning method is a contributing factor to implementation failures.
- 3. 3 Goodbye Micromanagement If you’vebeen a part of ERP implementations before, you know that they’re typically planned and written in a WBS format. The WBS format breaks a project down into a hierarchy of tasks and deliverables, from the general down to the specific. If the executive responsible gets everything he wants worked into the plan, he should see his vision realized at the end of the project. So why, after such careful planning, is the project still vulnerable to breakdowns? The answer lies in the realities of delegation. The executive cannot make every decision in the project himself. He doesn’t have the time or the technical expertise to do so, so he must rely on his team for execution. The problem with the WBS format, however, is that it lacks a clear way of putting individual tasks into a larger context. As instructions filter down through the organization, the original vision can easily get distorted or lost. If that doesn’t seem like a big deal, imagine a movie director who sets out to make a dark, gritty Batman sequel — but doesn’t make that vision clear to his team. Instead, he uses a WBS-style approach and starts delegating tasks. He tells them that he wants an all-star cast, an iconic CGI monster, physics- defying vehicles, and an award-winning soundtrack. He ends up with Steve Carell as Batman, Betty White as Catwoman, and a climactic scene in which the pair chases Shrek through the streets of Gotham in Fred Flintstone’s car — all set to a Broadway score. The director’s team followed his instructions perfectly, but because only he understood the vision, he got what he asked for — not what he wanted. This example may sound fatuous, but the WBS format leaves its creators vulnerable to the same sort of breakdowns, because it doesn’t have an organized way of spelling out the value that each task is supposed to deliver. THE B MOVIE Sometimes you get exactly what you asked for— not what you wanted.
- 4. 4 Goodbye Micromanagement THE WBSMODEL The WBS format is designed to convey a series of requirements, organized as components of larger requirements. The ‘what’ is clear, but the ‘why’ is hard to decipher. The thinking behind each task is rarely provided — and if so, only as part of the requirement’s description. But perhaps even more concerning is the lack of defined hierarchy. Each action item sits untethered to the overarching vision, its relationship to the larger picture unclear. WBS # Item Title Operation Q-Gate Deliverable Work Stream 1.1 Prepare Team Onboarding Document Prepare the onboarding package for external consultants from SAP and partner companies. Project Guideline PM 1.2 Project Governance Ensure that an efficient management framework is in place for successful project execution. PM 1.2.1 Define Project Organization The purpose of this task is to define the organizational structure, roles, and responsibilities of the project team. Steering Committee Definition, Roles PM 1.2.2 Communication Management Plan Complete the communications management plan. Outline the processes required to ensure distribution, storage, and retrieval of project information. Communication Plan PM Project Launch WBS # Item Title Description Q-Gate Deliverable Work Stream 2.1 Prepare Project Charter Document Collect all input required for the project charter and document it. Format suitable for both communication and sign-off. Project Charter PM 2.2 Identify Stakeholders Ensure that the correct groupings of stakeholders have been identified for the project. Organizational Change/PM 2.3 Obtain Project Charter Sign-off Achieve a formal sign-off of the project charter. PM 2.4 Kick-Off Workshop Kick-off the project/phase and ensure that all needed information is shared with the resources. Phase Kick-Off Meeting PM Project Charter 2 1
- 5. 5 Goodbye Micromanagement All executivescommunicate their vision at kickoff. But when their team is down in the weeds, it’s easily lost— especially if it’s not baked into how the plan is documented. The visionaries are playing a high-stakes guessing game, describing their goal as a series of actions and hoping their team can figure out what they want. For example, when setting up a new SAP system, many visionaries want to standardize their business practices across the organization and request that all units use “out of the box” software, but soon discover that a large number of customized objects have slipped into the project scope. This happens because low-level managers have competing requirements to juggle. They’re accountable for making sure their unit transitions smoothly from the old system to the new one, and it’s tempting to request customization so they don’t have to learn a whole new set of practices. The vision is lost when they prioritize requirements rather than the values behind them. Projects managed by the traditional method can and do succeed, but they require a significant degree of micromanaging. The purpose of creating a plan in the first place is so that everyone can do their part without constantly having to go to the visionary for guidance. Instead of describing the vision as a collection of requirements, and hoping those requirements are correctly interpreted, wouldn’t it be great if plans could have that vision built in? As it turns out, they can. Instead of merely listing action items, consider a value- cognitive approach to project planning. A value-cognitive plan includes most of the same information that a WBS plan contains, but tasks are organized into a hierarchy according to how they contribute to the overall vision, and this thinking is spelled out explicitly at every level. MAKING THE SHIFT Instead of merely listing requirements, consider a value-cognitive approach to project planning.
- 6. 6 Goodbye Micromanagement THE VALUE-COGNITIVEMODEL You’ll notice a few things are different in the value- cognitive model. First, the rationale behind a particular task isn’t hidden somewhere in the description — it’s the first thing you see, and it’s in the same place for every task. Second, the hierarchy is clearly laid out. A reader can see at a glance how each element relates to the bigger picture — creating value, and supporting the vision — so it’s easy to understand what to prioritize when interpreting instructions. Third, the value-cognitive model offers a flexible system for communicating business requirements. Each requirement can map to one or more operations, creating an additional layer of insight for team members as they navigate tough decisions. Rationale Increasing market share will generate capital to form a new business division Rationale We’ve lost business to our competition because we can’t fulfill orders Rationale We have too many vendors in our supply chain, and can’t enforce standards Vision Strategy Operation Increase market share by 15% over a five-year period Address supply chain deficiencies Rationale CRM processes are failing because the master data is inaccurate, preventing us from opening new accounts Strategy Improve accuracy of our sales data Consolidate vendors to improve pricing and demand faster turnaround Rationale Our internal procurement process is time consuming and prone to errors Operation Simplify our lengthy workflow process for procurement Rationale Duplicate data is causing our reports to generate inaccurate numbers Operation Centralize our master data management across the enterprise Rationale Existing business systems is a hybrid of ERP and non-ERP systems. Business Requirement Business Requirement Must support a data model of both ERP and non-ERP systems Rationale Sales teams have lost prospects because of inability to convert a prospect into a customer rapidly Integration to business systems must be near-real time Value Defined Value Planned Value Executed Value Ensured
- 7. 7 Goodbye Micromanagement Value-cognitive planning offersa number of benefits. First, it reduces uncertainty by explaining the purpose of every requirement. Second, it streamlines decision making. For instance, if a team member is choosing between a customized solution with more functionality or an off-the-shelf solution that will plug right in, he can check the plan to see which one is more in line with the project’s underlying goals. ASAP 8 recommends value- based deliverables instead of technical deliverables, so value-cognitive planning is philosophically consistent with ASAP 8, and maps smoothly onto SAP’s recommended implementation strategy. Finally, it’s a useful tool as part of a larger organizational strategy to empower your team members to act if they see a better way of contributing to the vision, or if circumstances change. With a clear understanding of the overall picture, they can adapt and respond intelligently. By organizing a clear hierarchy and making it integral to the plan, value- cognitive planning gives a clear understanding of the rationale for every task — and it does so without changing the way you use any of your existing planning tools. It empowers your team to make vision-based decisions in your absence, and makes everyone accountable for delivering what’s needed, not just what was asked for. In both cases, a subtle change in focus produces a dramatic improvement in results. SAP’s new methodology, ASAP 8, offers a new way of running projects. Instead of tracking technical deliverables, we now look at business processes holistically, and what value they bring to the table. Today Using the new ASAP framework Testing Yesterday Project Mgmt Configuration Enhancements Solution Mgmt Value Mgmt Business Process Mgmt Program & Change Mgmt
- 8. 8 Goodbye Micromanagement WBS #Item Title Q-Gate Deliverable Work Stream 1.1 1.2 2.1 Allocate Resources Prepare Team Onboarding Document Define Project Organization Project Guideline PM Project Guideline PM Project Guideline PM Supply Chain Reform 1 Rationale Increasing market share will generate capital to form a new business division Rationale We’ve lost business to our competition because we can’t fulfill orders Rationale We have too many vendors in our supply chain, and can’t enforce standards Strategy Operation Vision Increase market share by 15% over a five-year period Address supply chain deficiencies Rationale CRM processes are failing because the master data is inaccurate, preventing us from opening new accounts Improve accuracy of our sales data Consolidate vendors to improve pricing and demand faster turnaround Rationale With millions of records, we don't have the man-power to analyze records by hand Technology must support automated consolidation, based on business rules Rationale Our internal procurement process is time consuming and prone to errors Simplify our lengthy workflow process for procurement Rationale Duplicate data is causing our reports to generate inaccurate numbers Centralize our master data management across the enterprise Rationale Existing business systems is a hybrid of ERP and non-ERP systems Business Requirement WBS # Item Title Q-Gate Deliverable Work Stream 2 Strategy Operation Business Requirement Must support a data model of both ERP and non-ERP systems Rationale Sales teams have lost prospects because of inability to convert a prospect into a customer rapidly Integration to business systems must be near-real time It’s important to note that value-cognitive planning is more than just a philosophy. It’s a strategy that can be dovetailed with your existing suite of tools. Whether you use Microsoft® SharePoint®, spreadsheets, or another system altogether, you can apply this approach to flesh out your plan into a living, tangible asset—one that ferries your vision to final success, not a string of dead ends.
- 9. 9 Goodbye Micromanagement When writinga value, keep in mind that their purpose is to empower team members to make the decision you would make if you were in their place. In general, it’s better to define each element as broadly as possible, because it gives your team more freedom to pick the solution that best advances the vision. “I want to be focused and alert when I get to work” opens up a lot more options than “Make coffee by 6:45 am.” That said, don’t be afraid to be very specific if that’s what the vision requires. Rationale Being alert will increase productivity and decrease stress Rationale My circadian rhythm is out of balance making restful sleep difficult Rationale I tend to stay up reading for too long Rationale Reading is more relaxing than watching TV Vision Strategy Business RequirementOperation 1.1 I want to be focused and alert when I get to work Standardize sleep regimen Strategy Use caffeine to boost alertness... Rationale An extra .5 hours of morning sleep can be gained Make lunches the night before Read book before bedSet a reminder alarm to get ready for bed at 11pm Rationale School cafeteria food is expensive and low in nutrition Business Requirement Make lunch for kids Operation 1.2 Value Defined Value Planned Value Executed Value Ensured WRITING IT DOWN
- 10. 10 Goodbye Micromanagement ORGANIZATIONAL IMPACT We’veoutlined the benefits inherent to value-cognitive planning. By clarifying the rationale for each task, it helps the team accurately deliver results that are consistent with the overall vision. It also streamlines decision making by organizing these elements into a hierarchy, so it’s clear how to prioritize alternative courses of action. But value-cognitive planning offers other advantages as well. An implementation partner who can skillfully execute a value- cognitive plan can eliminate needless re-work and delays by building deliverables that fit the guiding vision on the first try. With their specific technical experience, they can propose alternative solutions that may deliver better results than the method outlined within the plan. Most of all, they can smoothly adjust to changing circumstances by keeping the overall vision in mind, and adjusting methods accordingly. Unfortunately, not every implementation partner is optimized for a value-cognitive approach. Most consultants are honest, hard-working people, but as long as they are providing their deliverables, they get paid whether the overall project succeeds or not. Consultants prefer projects planned in the traditional format because it generates a straightforward list of tasks to fulfill. But as we’ve previously demonstrated, this approach leaves the project vulnerable to many preventable errors. Changing your planning format can be daunting, particularly when it requires a bit more legwork at the outset. However, the simple act of defining and organizing your vision will bring immediate, tangible benefits. Your implementation team will have a clear understanding of the bigger picture, they’ll be able to make the correct calls without having to consult you directly, and they’ll be empowered to capitalize on available opportunities and respond intelligently to unexpected challenges. Use value-cognitive planning to define your vision, and watch that vision become a reality.
- 11. 11 Goodbye Micromanagement Ready. Set.Go Live. www.hollandsystems.com 454 Irwin Street NE Suite #5, Atlanta, GA 30312 How do you align the executive vision with detailed deliverables in your project plan? How can you ensure that your proposed SAP roadmap is in line with the vision statement? What are the key elements to executing change management during an SAP implementation? If adjustments to the project plan and/or scope are necessary, how is this managed to ensure quick but accurate changes? How do you identify problems with the project execution? Here is a list of questions you can ask prospective partners to help determine if they are able to execute value-cognitive plans.