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Chapter 5: Constructing an agile implementation plan

erpnext.com/erp-guide/constructing-agile-implementation-plan

Assembling the team

Identifying the Project Champion

At a long, drawn-out meeting that takes place at the Spindl office, Saf is leading the
discussion about assigning a Project Champion for the ERP implementation project. There
are two ways to go about it: either they hire an external PC, or pick someone from their own
team. While Saf is in favor of the former, Mel seems to be leaning towards the latter.

Saf points out that implementing an ERP is not an area of expertise for people in the
company, and there may be oversights that they cannot—in a metaphorical and literal
sense—afford to have.

Mel is quick to counter; picking someone who knows the company itself is more important
than knowing an ERP, as they’ll be the person who has a good hand over the operations of
the business.

Neither are bad approaches, Dex (from manufacturing) points out. There are pros and cons
to both; however, in both cases, the PC absolutely must be someone who is enthusiastic
about the task at hand, and it must be an explicitly defined role. There are many risks of an
implementation failing if there’s any ambiguity of who the Project Champion is, or if they lack
the drive to see the implementation all the way to completion. Building on Dex’s comments,
Saf points out that the teams at Spindl will consistently communicate with the Project
Champion, whether internal or not. It is best to hire someone who knows the ins and outs of
something that is unknown to them and then communicate their needs to the PC. It seems
like this person is the single most important factor in the success of their ERP
implementation.

Mel concedes. Aware of the importance of a Project Champion, Spindl decides to hire Lyn,
an ERP Expert, and Project Manager, to help them undertake this Herculean task. They

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communicate their requirements and goals to Lyn and trust them to spearhead their ERP
implementation. Lyn, who brings years of experience to the table, is confident about the
project and stresses the importance of getting things up and running. Saf seems a bit unsure
about the approach. There are aspects of modules that might require customization, and Saf
believes it should be made a priority. While that seems sensible on the surface-level, Lyn
explains the benefits of an iterative, early adoption and introduces Spindl to the earlier-
discussed Agile implementation method.

Why you need a Project Champion

One of the biggest reasons for failed implementations is user resistance towards new
software. It forces users out of their comfort zones when they must unlearn what they’ve
been doing for a while. And to top it off, they also need to learn something new.
Understandably, it’s something people find themselves averse to, especially with the lack of
any apparent incentive and visible value.

But it’s exactly why a good Project Champion is necessary—they’re the one who’ll be
encouraging and pushing users to overcome this. Nurturing acceptance also produces
valuable feedback from people who will, after all is said and done, use the software.

The Project Champion also acts as the single-point-of-contact (‘SPOC’) between your
business and the software provider/implementor. This helps to maintain a clear line of
communication and ensures nothing falls through the cracks.

Identifying the Team

Lyn begins assembling a team of people from the various departments of Spindl to represent
the various modules being implemented. Ren from accounting, Lia from QA, Dex from
manufacturing, Max from procurements and inventory all sign on to the team to make
sure the modules being implemented do everything their departments need them to.

If the Project Champion is the Superman of the implementation, these folks are the Justice
League. For every module being implemented, there’s a corresponding department. Each
department should identify a team member to represent their respective ERP module. This
person becomes the DRI (‘directly responsible individual’) in ensuring that all master data is
supplied, UAT (‘user acceptance testing’) is conducted and signs off on the live version of
the module.

Forming an Escalation Matrix

Accountability makes things work. Having a defined escalation matrix helps in raising
matters related to implementation if things are not headed in the right direction. Typically, if
an employee responsible for any actionable (e.g., providing master data) is failing to do so,

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the DRI for the module can step in and help move things along.

Not only does this save time, but it also creates a clear channel of communication between
the people involved in the implementation process.

Revisiting your goals and setting Key Performance Indicators (KPIs)

"Everything depends upon execution; having just a vision is no solution."

-Stephen Sondheim (Composer, Lyricist)

Mel, Saf, and their team have already set their goals for their ERP implementation. Let’s
quickly revisit them:

1. Organize and manage their purchases

2. Categorize and track their inventory and stock
3. Create a quality assurance management pipeline
4. Streamline their production for quicker deliveries
5. Focus on increasing their revenue and profit

Lyn explains that while these goals are attainable, there is no current way they can calculate
whether or not these goals have been met. That’s why they require Key Performance
Indicators (or KPIs). KPIs, Lyn goes on to explain, are measurements they can use to
gauge whether or not they are fulfilling their goals. This will not only ensure that they’re going
in the right direction but also help them make smarter business decisions. Simply put, KPIs
exist to evaluate the success (or failure) of any given project.

While goals are arbitrary, KPIs bring metrics into the picture. They are necessary to make
sure you get the best out of your ERP implementation. The Return of Investment (or ROI) is
not the only thing to consider. It is necessary to delve into more nuanced metrics to truly
gauge what’s changed over time.

Business Goals

A target is any prediction or expected outcome from a given process. It helps to look at your
ERP implementation according to the different functions and departments of your enterprise.
However, while setting targets is necessary, it is also important to prioritize which KPIs are
more important indicators of the success of your implementation.

Lyn proposes the following KPIs to Spindl:

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1. Cycle Time: The cycle time is the most important metric for Spindl. It’s representative
of how fast the business responds to orders and demands. It measures the time it
takes for them to produce a batch of clothing, and deliver it to their
distributors/customers. Faster cycle time is indicative of more effective processes,
which will address all their goals.
2. Demand Forecast Accuracy: Once an ERP has been implemented, it should allow
Spindl to use their existing data to accurately forecast demand for their products (while
taking into account safety stock, sales projections, product life-cycles, and other
variables).
3. Schedule Adherence: Maintaining a production schedule is another effective way of
studying how well Spindl is able to manage its resources using an ERP.
4. Customer Satisfaction: Another significant metric is whether or not their newer
process is leading to greater customer satisfaction. Quality assurance, better service,
on-time deliveries, etc. are all indicative of this KPI.
5. Labor Benefits: The ERP Spindl implements will, at the end of the day, be used by its
employees. So an important KPI is whether or not it is positively impacting the
workforce. Are they satisfied with the new process? Are they taking less time than they
used to accomplish tasks? Are things being done more effectively? These are all useful
metrics in gauging success as well.

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