Work Through the Steps For Business Process Transformation
When we think about the steps, it takes to implement an ERP system for true transformation, further effort is required to set the enterprise metrics that may monitor success.
Establishing Key Performance Indicators
When assessing the steps, it takes to implement an ERP system, measurement is significant.
So far, we’ve outlined our imaginative and prescient and created a restricted variety of clearly outlined objectives. How will we decide the success of our journey as we proceed by means of the yr? To accomplish our objectives, we’ll want some measurement milestones all year long.
These milestones must be primarily based on realizing the alternatives that have been quantified in your Business Case for Change.
At the company degree, our key efficiency indicators (KPIs) will likely be centered on monetary metrics. Some examples embody:
- Revenue development
- Market share
- Inventory worth
The Steering Team ought to overview these company degree KPIs a minimum of as soon as a month. Members of this group will be capable to join efforts in their very own areas of duty. Many occasions, these KPIs are shared commonly with everybody in the corporate.
“It’s vital to maintain these metrics at a excessive degree of the organization.”
We don’t suggest protecting them secret throughout an ERP implementation, however most mid-level and decrease ranges of the organization simply wish to know that the company is financially steady and is rising. Too many high-level details are simply complicated and never useful in making every day selections.
At decrease levels of the organization, KPIs must be centered on aspects of the enterprise that may be impacted and controlled, corresponding to:
- Schedule attainment/On-time supply
- Process cycle time
- Inventory value and accuracy
- Employee turnover
KPIs masking these measures ought to have aggressive month-to-month targets and weekly “flash” stories to maintain everybody on-track.
“Just having month-to-month targets is just not sufficient, although.”
The most efficient use of those KPIs that I’ve skilled concerned a proper month-to-month workers assembly. This assembly was chaired by a senior member of the Operations group and concerned plant managers or space managers reporting on their group’s efficiency.
Meeting the month-to-month objective goal resulted in a pat on the again. Missing a month-to-month goal or reporting a seamless negative pattern required the supervisor to obviously outline the three actions being taken to turn-around the unit.
These conferences have been required attendance for all plant/space managers. Needless to say, offering a efficiency report back to your friends was extremely motivating. Having your three restoration actions scrutinized by your friends was one thing you’d reasonably keep away from. The results have been impressive.
Finally, as a part of an enterprise software program implementation, pull collectively the primary three steps with a strong communication program.
Most corporations have a month-to-month e-newsletter. This is an effective begin, however solely a start.
I’ve seen corporations produce interim communiques displaying steady enchancment success tales with a lot of photos, or particular stories highlighting extracurricular actions of group members. These may very well be digital or printed. There are execs and cons to each.
Formal small group conferences between group members and senior administration are good, however should be clearly outlined and should lead to a dedication by the senior managers to handle any questions or considerations which might be raised.
An even extra important communication software is managers in any respect ranges simply assembly informally with the group, at lunch, in break areas and of their work areas.
“This casual communication helps to construct a sense of transparency and belief all through the organization.”