Tiffin University team project - MGT 511: Individual and Teamwork, Spring 2012

1. Change is Hard. ERP is Evolution
Team B Assignment for MGT 511
Gregory Theis, Katrina McLendon, Rachael Garling, Michael Seuffert

2. Enterprise Resource Planning
Solution
Issue involved Implementation

3. Enterprise Resource
Planning
• In our first month we have been on track for
the implementation of our ERP integration.
• We must now accelerate our integration to
be complete in the next twelve months.

4. Assumptions
What do we know now?
• We have already selected an ERP vendor, such as
SAP, Oracle, or Microsoft Dynamics.
• We have created an ERP project implementation
team from a cross-section of managers, employees
and department heads.
• We have identified the goals of the
project, including processes that will be streamlined
and estimated cost savings.

5. ISSUES INVOLVED

6. Issues Involved
• A majority of ERP projects fail in terms of
meeting deadlines and reaching goals.
Reasons for this include:
– Lack of top-level commitment
– Resistance to change
– Lack of training & resources
– Unrealistic expectations

7. This is our time to rally as a team!
As a group we will meet this challenge, we will
have our systems automated to facilitate the flow of information
between all business functions.

8. ERP Benefits for
Stakeholders
• The ERP commercial software will allow integration of all
business processes throughout the company.
• While the implementation has costs and risks, the
technology investment has long-term potential pay-offs.
• Stakeholders, such as managers, can reject or adapt to the
system.
• When implemented corrected the integration of all the
aspects of our organization will allow a “seamless” flow of
information between all business functions. (Boonstra 2004)

9. ERP Benefits for
Stakeholders
• This system will embrace management from
finance/accounting, manufacturing, sales, and service with
an integrated software application.
• The integrated system will support business goals, improve
systems and processes, lower costs, empower
employees, enable partners, customers, and suppliers.

10. Timeline
The compressed timeframe brings additional
challenges and stresses.
Management, the project team, and the ERP vendor
will all be held accountable for meeting deadlines.

11. Organizational Behavior
Issues
• Keeping the team motivated
• Keeping conflict to a minimum
• Effectively handling stress
(DuBrin, 2007)

12. Staying Motivated
• Enrich the ERP task by adding variety, responsibility
and managerial decision making.
• Empower the team members to make decisions and
enhance self-efficacy.
• Continually provide feedback to the team members
throughout the ERP implementation.
• Recognize team members for their hard work and
efforts.
(DuBrin, 2007)

13. Reducing Conflict
• Identify the source of conflict and work to solve the
problems.
• Managers must maintain an open door policy in order
to allow issues to be solved quickly.
• Allow room for negotiation but be plausible.
• Stick to deadlines and use them when negotiating.
• Compromise when parties cannot come to a solution.
(DuBrin, 2007)

14. Managing Stress
• Give employees the emotional and social support they need
to stay motivated
– Encouragement
– Understanding
– Friendship
• Let employees have a cool down period where they can
practice relaxation responses.
• Practice control techniques
– Practice good work habits
– Manage time
• Breathe deeply since the time crunch stressor cannot be
removed.
(DuBrin, 2007)

15. Emotional Intelligence
• Top management must demonstrate their utmost
commitment to this project and never waver.
• Communicate clearly & convincingly
• Believe in your people and processes – show that you
care
• Be aware of non-verbal cues or dissention
• Manage emotions when faced with setbacks

16. Gaining Support for Change
• Allow for discussion • Gain political support for
• Allow for participation change
• Avoid citing poor • Provide education
performance as a reason for • Incorporate the human touch
change • Pay attention to the
• Point out financial benefit emotional aspects of change
Leadership will be the key to success. The company is fully
committed to this project. We will focus on the positive
aspects of the ERP changes, and express our vision of
where the company is headed, and how this project can take
us there.
(DuBrin, 2007)

17. SOLUTIONS and IMPLEMENTATION

18. Implementation
“Test & Retest the
“Train the trainer” Database”
“Develop Standard “Go Live”
Operating
Procedures”
“Data Organization “Evaluation”
& Clean-up”

19. “Train the trainer”
• This will require teamwork and mentoring for each
individual.
• As teams of five are trained they will be the trainer and
coach for the next team.
• This method will allow everyone to be part of a team and
work together in a systematic way.
• This will also require everyone to become a coach/mentor
after the training, so everyone will have the opportunity to be
trained and subsequently train the next group.

20. Standard Operating
Procedures
“If an ERP project becomes too large, it will
collapse into a black hole. Time and money
are absorbed but nothing ever comes out.”
─ aggyey.blogspot.com
• Customizing an ERP system adds cost, time, and
greater potential for failure.
• Due to our time constraints, this means we have to
change the way we operate rather than change the
system.

21. Data Organization and Clean
Up
• All data is collected from the various systems and is
combined in to one database that we will use for
the ERP.
• The data is sorted and all duplicate records are
deleted.
• Data is then classified to simplify the record
searching process and reporting functions.
(panorama-consulting.com)

22. Test and Retest the
Database
• Testing and retesting the database allows for our team to
make sure the system is working before we go live.
• It minimizes the room for error as errors can be caught
ahead of time and fixed.
• Our knowledge of the database is improved through
continuous testing.

23. Going Live
• A specific date is scheduled when the database will be
rolled out to the rest of the company.
• Everyone will receive hands-on training before we go live to
make sure they can navigate the system.
• Training documents will be provided for reference.
• There is little room for error when going live since this ERP
had to be completed in 12 months instead of 18.

24. Evaluate Progress
• The first few months after our ERP implementation date are
going to be critical because that is when our new users may
experience errors.
• We will continuously monitor the progress of our system and
provide maintenance and upgrades when necessary.
• We will ask for feedback from the company of what we can
do to help make their jobs easier.

25. Maintenance and Upgrades
• Launching of the new ERP will include & require routine
enhancements and improvements to the functionality of the
software.
• The 60/60 Rule for Software Maintenance and
Enhancements will be followed.
– 60% of the software dollar for a given product is spent on its
maintenance
– 60% of the maintenance dollar is spent on enhancement.
(programmer.97things.oreilly.com)

26. Maintenance and Upgrades
Cont.
• Once the ERP is successfully launched, management’s focus
will shift gears to finding ways to support it:
– Internet Sales/Online Orders
– Order Status
– Invoice Review
– Management/Maintenance of Online Catalog
• Customization will involve investing in other products offered
by the new ERP vendor that relate to specific needs of our
organization!

27. MOTIVATION AND INCENTIVES

28. Motivation/Incentives
• It will take an “All Hands On Deck Attitude” to
launch this project in the time frame allotted!
• We welcome any ideas from all levels of
employees that would enhance or make the
implementation process a SUCCESS.

29. Motivation/Incentives
Cont
• As a REWARD for your dedication & hard work we will be
extending the following incentives:
– Employee Stock Ownership/Stock Options
– Monthly Recognition Program
– Flexibility In Schedules
– Employer Paid Medical Benefits
– Advancement Opportunities
– Increased Pay/Bonuses/Merit Raises
• ***Note: Offers are contingent on CAN DO ATTITUDES &
Employee Performance!!!!

30. Next Steps
• There is No I in T.E.A.M.
• ALL HANDS ON DECK & A CAN
DO SPIRIT!!!!
• Decreased Cost= Increased
Revenues & Increased Pay!!!
Empower
• Lead By Example & Rely on the
Buddy System Enable partners
• 2 Heads Are Better Than 1 Enable customers
• Remember: The Client Is Always
Right!!!!!

31. Conclusion
• The ERP system allows every functional area to share every
process and every piece of data.
• A change of this magnitude will require not only time and
resources, but an understanding of organizational behavior and
emotional intelligence.
• Faster, leaner, more responsive to customers:
this is not just change…
it is evolution.

32. References
• Boonstra, A. Interpreting an ERP-implementation project
from a stakeholder perspective. International Journal of
Project Management 24(2006)38-52.
• Dixit, A. (n.d.). Five Steps to ERP Master Data
Rationalization | 360 ERP Blog. ERP Software Selection |
ERP Implementation | Organizational Change Management.
Retrieved February 26, 2012, from http://panorama-
consulting.com/five-steps-to-erp-master-data-rationalization/

33. References
• DuBrin, Andrew J.. Fundamentals of organizational
behavior. 4th ed. Mason, OH: Thomson/South-
Western, 2007. Print.
• "The 60/60 Rule - Programmer 97-things." 97 Things Every
Programmer Should Know - Programmer 97-things.
N.p., n.d. Web. 25 Feb. 2012.
http://programmer.97things.oreilly.com/wiki/index.php/The_6
0/60_Rule