Monday, May 25, 2009

People drive ERP systems performance

People drive ERP systems performance

Why do people who ostensibly have the same start in the career race perform at different levels? Despite the same standards of academic achievement, similar backgrounds, the same training, shared social skills and work experience, some individuals perform much better than others. Recent studies have shown that our natural and learned skills through training and experience - the basics - only represent at best a 20% contribution to our performance. The remaining 80% which affects our performance comes from our personal skills - those crucial other elements such as our thinking and our behavioral aspects. Including but not limited to:
  • Decision making ability and judgement
  • Leadership
  • Assertiveness
  • Coping with stress
  • Enthusiasm and energy (Passion)
  • Motivation
  • Team building
  • Self-confidence
  • Initiative


These are the drivers for successful personal performance. It explains why some professionals with less academic achievement outstrip their better qualified peers. Perhaps acquiring the basics will ensure satisfactory performance - but it’s the drivers that deliver superior performance.

In a recent poll on the value of ERP systems as seen by business professionals on the social networking website LinkedIN.com the results were as follows:

32% - Real Cash Benefit / Can’t Live Without It

68% - Too Complex / Little Value / In Learning Mode

So why are so many organizations failing to perform to a high level in automating processes, informing stakeholders (reporting), educating users and managers, and transforming they way business is done? Surely these are the key objectives for all ERP systems. I believe we can learn a few things from people performance when we analyse the shortcomings of ERP systems performance.

Many of these organisations share the same basics including: the technical infrastructure; qualified IT and Applications staff; competent users; the project methodology; implementation integrator and the same ERP application itself which is in use in many global organizations.

Organisations which fail to maximise the potential of ERP systems display similar problems such as heavy customizations, a lack of planning and management, disgruntled users, ad hoc ancillary systems in MS Excel and MS Access, an array of reporting tools; problematic interfaces and are often IT driven. There is a big gap between the users and the applications team in IT.

Could it be that just like people, ERP systems need behaviors and attributes to drive them to success? Does the ‘Go live’ signal the end of the process or merely a point in the journey. I believe even in successful ERP implementations the ‘Go Live’ is the half way mark at best.

So what are the drivers for ERP performance success? In my experience I would suggest the following:

  • Actually Managing Oracle Applications – as an investment
  • Successful Change Management - people are key
  • Leading a Support Team – proactive not reactive
  • Measuring Success and Value for Money – monitoring performance
  • Data and Information – planning and managing
  • Customers and Collaboration – working together for the benefit of all
  • Reporting and Business Intelligence – the right tools for the job
  • Empowerment and Super Users – unleash skills and passion
  • Change Control and Value for Money – cost benefit analysis
  • Project Management Kept Simple – the short and long term view
  • Process Improvement – continuous and alignment with applications
  • Management Information Systems – efficient and effective systems

These are all people centred activities required for better ERP systems performance. Fundamentally, ERP systems are investments. They need plans, actions, energy, rules, policies, analysis, management, customer focus, leadership and lots of passion to drive performance. The drivers of people and ERP systems performance have striking similarities.


I wonder if there is a link between highly performing ERP management and highly performing ERP systems…..

www.DriveERP.com

http://twitter.com/John_McGrann