Saturday, July 25, 2009

Howdy Partner


If she said it once she said it 10 times....”I’m a customer and this isn’t good enough.”

It was early days and I had been warned...but my blood pressure was rising. The ‘evidence’ was turned out on the table. It was like a legal battle...the whole history, dates, places, statements, escalations, disappointments etc. It went back years and it was all very fascinating but hardly relevant to me - the new kid on the block. I wanted to know what the issues were now and if I could help. Her attitude was poor and on par with her competence.

It was one of those rare occasions when I led the ERP applications team in a meeting with a senior manager from the business side and despite our best efforts, it was impossible to make it in anyway a productive meeting.

There were a number of factors which I had quickly gleaned that would prevent this lady leaving the meeting entirely satisfied.

Firstly, her demands were totally unreasonable in terms of resourcing them.

Secondly, her proposed solutions were highly inefficient or unworkable.

Thirdly, she had managed her functional area side for more than 5 years and it was a mess.

Fourthly, after a few chats with people I realised that many user tasks were being performed by my own team. That would change.

Fifthly, there was a record of the lady going outside IT and ERP applications support to implement an array of inefficient application and reporting tools.

She was out of control and the executive had done little to redress the situation in the interests of the organisation. Politics ruled not professionalism.

But what really riled me was the statement that she was a ‘customer’. In fact, she was a manager in the same organisation as me. It seemed only IT had ‘customers’. The other functional areas were not suppliers as we were, although HR did have business partners which seemed very positive.

The ‘customer’ philosophy applied to those receiving services from the IT department. It also included the whole array of service delivery managers, customer support, liaison people etc. etc. None of whom added any real value and often promised what they themselves could not deliver. It was chaos and those who ranted the most got a bigger slice of the cake. IT project managers were reduced to order takers. There was no partnership. It wasn’t even customer service as is applied to ‘real customers’. It was pure servility.

It is so important to clearly define your customers. They will have a big impact on your ERP systems performance as they consume your resources. So what is the traditional view of a customer?

  • Consumer of your goods and services

  • They pay for your goods or services

  • They are able to choose other suppliers

  • Unprofitable or troublesome customer relationships can be terminated

  • There is a legal agreement

In an enterprise-wide system the only group that would fit the criteria as customers are those at the executive level. They are as near as possible to real external customers. Senior and middle managers do not have the enterprise view or responsibility - yet can often cause strains on ERP resources and performance.

The so called internal ‘customers’ can exert an undue influence on the ERP applications teams. The system can become inefficient, yet the responsibility is totally blurred in the chaos. Internal customer demands are rarely scrutinised and override organisational needs. Customisations are many and costly. ERP resources are misused and sometimes abused by ‘customers’. And the latter can make decisions around technology and service provision about which they know little.

If you are not a customer then you are a user, albeit you may be very senior in your organisation. Users can be supported professionally and it should not matter whether they come from within or outside your organisation.

Especially in large organisations it is important the right ERP project and/or support team members meet the right business users at the right levels in the same organisation. The frequency, content and reporting of those meeting should be pitched at the appropriate levels. Action points rather than minutes should be the output. Set up an Engagement Model to deliver it all.

A Custodianship Model defines roles, responsibilities, duties, and relationships between the applications team, the users, all levels of management, Super Users and other stakeholders. Without it - chaos reigns.

Some of the key principles of a Custodianship Model internally should include:

  • Overall priority is the interests of organisation
  • Equal partners in all dealings – a parity of esteem
  • Business Partner analysis evaluates services and costs for each partner
  • Escalation to IT senior managers and Business Partner senior managers
  • ERP team challenges all Business Partner requirements for value for money
  • Exploitation of ERP modules via ERP Super User Groups
  • Joint work delivering efficiency savings
  • Reciprocal services afforded to ERP team by Business Partners
  • Agreed Code of Conduct
  • Business Partners own business processes and controls
  • ERP teams implement and maintain agreed controls in ERP modules
  • Business Partners authorise access to their modules
  • ERP teams grant and monitor that access
  • Business Partners own the application data
  • ERP teams monitor and report on data quality
  • ERP teams are custodians & managers of live ERP applications
  • ERP team authority is delegated from the executive via the IT Senior Leadership Team
  • All actions are aimed at benefiting the whole of the organisation
  • Reporting Strategy – constant agenda item for partnership meetings

A mature, professional and ultimately beneficial relationship can arise from a well defined internal Custodianship Model. People know their roles and responsibilities. IT, ERP and business resources do what they do best and collaborate on areas that require partnership with other stakeholders.

The organisation is the winner and the cowboys can ride off into the sunset ...

www.DriveERP.com

http://twitter.com/John_McGrann

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


Tuesday, April 21, 2009

Oracle ERP Reporting Overview

What is ‘Oracle ERP Reporting’?

In any company there are 2 clear aspects to reporting – namely the definition and the technology.

The definition of reports required for internal and external customers is entirely a matter for the business managers. For example, Finance teams define what reporting is required to meet statutory and regulatory requirements. They define what information is included, who receives the report and when the report is delivered to the customer.

The IT team is responsible for advising on, developing and supporting the technology used to meet the needs of business reporting. The IT role is to focus on how reports are delivered effectively and efficiently using the most appropriate reporting tools.

A partnership is required to meet the reporting needs of the business. Too often those roles are blurred and confused with the result being inefficient delivery.

The IT team should have a clear strategy for delivering reporting including:

  • Align with the company Reporting Strategy
  • Top down…bottom up approach
  • Utilise best practice
  • Deploy appropriate Oracle tools
  • Baseline current reporting
  • Customers define requirements - the WHAT
  • Change request raised and fully scrutinised for value for money
  • Service provider - the HOW
  • Detailed analysis
  • Agreed solution - effective and efficient
  • Controlled development
  • Fully tested
  • Deployed in production
  • Maintained and supported
Oracle ERP Reporting tools

There are a number of Oracle reporting tools deployed in the ERP arena. Often companies have no clear strategy for reporting then it is easy to conclude that their deployment has been supply rather than demand driven.

The reporting tools include:
  • Standard reports – out of the box and reliable
  • FSG - user defined in Oracle Financials but needs control
  • Customised reports - costly and high maintenance
  • SQL ad hoc queries - risky but quick
  • Oracle Discoverer - good ad hoc tool needs control
  • Business Intelligence.- needs a full strategic analysis
These tools may have been deployed without aligning: it to any business reporting strategy; or analysing demand; or by structuring appropriate support and expertise in the business side or IT teams.

As one senior business manager told the author recently: “I asked 3 Oracle tools the same question and got 3 different answers.“

Security

The ownership of Oracle reporting necessitates access to live production systems and sensitive HR, Contracts, Projects and Payroll data.

A great deal of work is needed in restricting and managing access to these areas with customers' consent. The IT team should be the custodian of Oracle ERP applications on behalf of the company. They should manage access for users, databases, and applications' security, menus, responsibilities and functions

Skills

The business side rarely has the skills long term to develop reports at the correct standards, although Super Users should be encouraged to be actively involved in design, development, testing, deployment and support.

Cost

The IT team need to prioritise development working with the business. Their aim should be to meet all current and future support, development and reporting needs of customers with the current established numbers of analysts and absorbing new requirements by eliminating wasted efforts.

They need to be flexible in working across projects and support areas; seek to manage a robust change control for reporting including value for money; and have a mix of permanent staff supplemented by short term contractors to satisfy periods of high demand and backlogs.

Reporting Strategy

The IT team should identify the need for an Oracle ERP Reporting strategy with the following highlights:

  • Oracle applications customers
  • Start with a blank sheet of paper
  • Top down …bottom up approach
  • Challenge all current reports
  • Select appropriate reporting tools
  • Minimise customisations
  • Deliver efficient and managed reporting
  • Deliver’ One Truth’ reporting
  • Empower users
The strategy should be led by the business and supported by the IT team. There are huge potential benefits to successfully managing Oracle ERP reporting delivering correct, timely useful management information in a more efficient manner than the ad hoc supplementary tools often used in organisations.

www.DriveERP.com

http://twitter.com/John_McGrann

Sunday, March 29, 2009

Mission: Drive ERP..

My goodness Oracle applications have given me some great experiences over the years but left me with an underlying sense of frustration.... In today's recession, it's even more important than ever that clients secure value for money from their investment in Oracle.

My background as a management accountant and general manager combined with my functional and technical knowledge has certainly helped me manage ERP systems. As a contractor I've had project, support and change management roles in the UK, Europe and the Middle East; both public sector and multinational corporations.

I'm on a mission now at www.DriveERP.com to address these frustrations... Questions I need to answer.. I believe to the benefit of our clients.

Why are Oracle applications rarely managed as a business unit, or cost or profit centre? Does it really fit in IT? Or should it sit between the business and IT? How much is your organisation spending over the next 10 years? Time to give it some focus.

How many organisations monitor and report on the performance of their Oracle systems? I don't just mean database and transactional performance. What about customer service? The efficiency of the support system? Measuring the success of project objectives? Internal and external benchmarking? The measurement of solutions delivered after the implementation can raise the profile.

Why are some businesses driving business intelligence initiatives when their basic reporting capability is mediocre? Why are Oracle clients still heavy reliant on Excel and Access databases? Why do reporting and intelligence tools give different results to the same query? Let's get the basics right and ensure the business drives BI rather than the technology.

Why do large Oracle implementations fail to meet expectations? And fail to deliver the desired benefits to the business? Is it enough just to tick boxes for training, communications, and documenting process and job description changes? There must be more to successful change management.

Why are support teams often restricted to being a purely reactive force? What real value can and should they add to Oracle applications? Is there room for a more proactive approach here? Time to empower the professionals and the users.

Why is there such a heavy focus on data rather than on information? Isn't data management merely preparation for the added value product of delivering information? Is data an IT issue? And information one for the business only? Information is to key to business success.

Who are our customers? Is the internal customer really 'king'. Does this premise drive Oracle applications successfully? I believe a more realistic view of internal customers will bring improvements.

Are we really delivering the full potential of Oracle applications? Is the 'go live' an end date or the start of a much bigger process ? How do customers or users know what else Oracle applications can deliver? Too often the 'go live' signals the end of planning and progress.

I'll continue to articulate these questions. I have some answers and I'll be looking to test those solutions in the future:

  • Actually Managing Oracle Applications
  • Successful Change Management
  • Leading a Support Team
  • Measuring Success and Value for Money
  • Data and Information
  • Customers and Collaboration
  • Reporting and Oracle Technology
  • Empowerment and Super Users
  • Change Control and Value for Money
  • Project Management Kept Simple
It's a huge challenge which I am relishing. Contributions are invited from business and IT managers; ERP functional and technical consultants; subject matter experts; and Oracle applications users.


Enterprise Resource Planning: a business management system that integrates all facets of the business,

Supported by Oracle applications and driven by people.

www.DriveERP.com

http://twitter.com/John_McGrann

Saturday, March 21, 2009

Outsourcery...

We are in a global recession. The future is unclear. Sales and revenues are declining. Profit margins are under attack. Costs need to be cut. The The drama begins....

Even before recessionary times of course, outsourcing has been a legitimate tool for Oracle applications implementations, development work and support services. I could put a good case for outsourcing, but I'm not going to...

I have witnessed outsourcing in various guises: Competing for Quality; Market Testing; Private Finance Initiative; et al. What grinds with me is the unfairness at times to the client's in-house team. The guys and girls who have been doing the job for years, albeit maybe not as efficiently as is possible. Suddenly, they feel they are under attack and for good reason.

So just in case you find yourself in that position I've made a shield...

In summary, the quoted advantages of outsourcing are:

24 x 7 application support
Clients focus on their core business
Cost savings
In-house staff risks such as holiday/sickness/leaving
Access to a large pool of Oracle skills
Improved customer service

24 x 7 application support

I have yet to see effective 24 hour cover provided by a supplier support team. Quite often you either get the company help desk which is not very helpful, or it fails to send the message on to the right analyst or DBA. The alternative is to talk to the guy directly who is often out of the office or home and away from his computer until later. Additionally, they usually know little about your company or the urgent issue. Language and communications are further difficulties at times too.

Very frustrating and and a lots of wasted time.

Client focus on their core business

Ah OK so we concentrate on producing, packing, marketing, distributing and selling our widgets then. Fine. Except that we inevitably want to do all these activities much better. To do that we need meaningful information. Which in turn means we process huge amounts of data, refine it and the end product is company information.

Our information is therefore very near the core of our business.

Do we need to pay out large fees to outsourced consultants to constantly enhance and optimise reporting and intelligence. Can we afford to trust them to deliver and secure company data and information?

Cost savings

These are likely to be short term only. The supplier will press for a short term contract. The client company will lose is own experienced resources and the next time the contract negotiation comes up there will be a big hike in price.

Make sure you have a good accountant look at the costs of the rival camps. For decision making purposes, only in-house 'avoidable costs' should be considered rather than total costs for the in-house team. Basically these are the client company's cash savings as a result of outsourcing.

The vast majority of Oracle internal applications services are for internal use only. They don't need to make a profit. The supplier should be at a distinct disadvantage here. A rough guide would be that the service provider needs to be 25% more efficient on cost than the in house team.

In-house staff risks such as holiday/sickness/leaving

Get yourself some staff turnover figures for IT companies and you will probably find the in-house team fares better than most of them. A well managed and flexible applications team can cover sicknesses and holidays and a fall back position is to employ contractors on short term engagements.

Access to a large pool of Oracle skills

Another myth in my opinion. Only the very biggest companies have such a pool and many of the smaller and medium sized companies engage contractors on individual projects.

Cover this risk with an Oracle Support contract.

Improved customer service

It is hard to see how remote working can improve the service offered to users and ultimately the customer. The warm approach engendered by working for the same company is lost and the supplier's team will be pressurised to deliver new pieces of work at a significant cost to the end client.

Offshore support and development can be particularly difficult especially around communications. Many times in the past I have had to replicate discussions about issues during a telephone call by email because the analyst's English just wasn't good enough.

World class organisations will always treat their employees in a fair manner. Executives and managers responsible for the past performance of their in-house teams should not be allowed to shop internal resources. In-house teams can offer an efficient and effective Oracle applications service given a level playing field.

Otherwise they may well have an axe to grind...

www.DriveERP.com

Thursday, March 12, 2009

A Numbers Game...

The best job interview I ever had was laying on the sofa watching television. Shorts and tee shirt was the attire. It was a telephone interview of course. The client was a large multi-national and 'needed someone like me asap'. Two days later I had seven face-to face interviews with the IT and Finance teams at their EMEA HQ in a beautiful European capital city. Three days later I was in at the deep end...

There was much to do. A large and diverse professional user community was very demanding, Super User groups needed to be established, new modules to implement and upgrade, and an EMEA project on the horizon. Great stuff I thought and a big challenge. Especially, trying to keep up with the Harvard and Oxbridge starlets that swarmed around the place. Everyone had to add value at SUPER ORG PLC, and egos reigned supreme.

I managed to build a bridge between the IT and Finance teams – no mean achievement. I translated and interpreted, and kept the 'company interest' as the focal point. Super User groups were set up and were driving value out of the applications. Everyone seemed content, even happy, except the IT director one day....

“John this is your No. 1 priority this week. There is a top management graduate from the USA who is torn between two offers of management positions. One in Finance and one here in IT. He must end up here working on Oracle applications. Joe will give you all the details and I've agreed with the Finance Director that you will talk to the graduate and after that we need a decision from him. The right decision John.”

“ OK I understand” I said. “He must end up in IT to massage your ego and it's one in the eye for Finance. And it won't look too bad for you back in CORP HQ .“

“ Correct, and it must be in the company interest of course” he concluded with a wink.

The young guy was a fast-stream candidate with many connections back in the USA. He enjoyed his time in Finance and IT as part of his graduate programme and had a degree in accountancy. He understood the challenges and rewards within the company. They were virtually the same whether he was in Finance or IT.

I spoke to him for less than 3 minutes. He joined IT and the director was ecstatic...in the company interest of course.

“Brilliant John! How did you manage it?“ asked the IT Director.

“ I told him there was a world outside of SUPER ORG PLC and it was full of opportunities. And it was a fact that 70% of graduates left the company within 5 years of becoming managers.”

“ And?” he asked.

“ I asked him a question. 'If I could show you a way of earning $1000 per hour would you join the IT team?' He agreed he would if I could show him how to achieve it.”

“ And”, he pressed me.

“ Well we agreed that he would probably leave SUPER ORG PLC by the age of 30. And he would work for 30 years in the 'other world' outside SUPER ORG PLC. Where, and I showed him the research, Oracle applications staff earn at least $10,000 per year more than the accounting and finance equivalents.”

“And?”..

.“ He knew that training and development would mean him spending personal time on it also. About 300 hours was our agreed estimate. The rest was simple maths. Total additional lifetime income of 30 years x $10,000 a year divided by the number of additional training/development hours on Oracle”.

“Being?”...

“ $300,000 / 300 or $1000 per hour”.

“ Excellent John! Well they didn't teach us that one at Harvard! Where did you pick it up?” he grinned.

“ Bootle Tech......”.

www.DriveERP.com