ERP Implementation Overview

Embarking on a Journey

GOAL: The successful implementation of an integrated ERP system to support Harris County’s compliance with applicable statutory requirements.

Project Objectives • Enhance the user’s experience through secure self-

service options • Ensure that Executive Sponsors and stakeholders

understand and support the business value • Keep Executive Sponsors and stakeholders updated and

engaged in project activities • Identify and document business process improvement

opportunities, and perceived constraints • Prepare a formal strategy that illustrates how the

implementation process aligns with the project’s strategic vision

Business Drivers • Simplify, automate, and integrate business processes in a

system framework • Optimize the fully-integrated ERP system:

– One system-of-record for county records – Sharing of information between operational areas (e.g., Human

Resources and Payroll, ITC, Purchasing, Budget & Finance, and Auditor’s Office)

– Integration between the core ERP system, interfaces, and applicable shadow system solutions

– Improve efficiency of business processes through uniform systems solutions

– Support data capturing at point-of-entry to minimize duplication and redundancy

Business Drivers (cont’d)

• User-friendly reporting and interactive query tools

• Facilitate management of information, including decision support, managerial, costing, and commitment information

• Enforce acceptable levels of security over data, functions, and processes

• Flexibility to modify or develop functionalities to correspond with changing conditions

Challenges & Opportunities

“All good software and hardware in the world is useless unless people can and do use it.” -Elliot Masie, The Computer Training Handbook

“When you move to ERP, you are changing the way people work. You are challenging their principles, their beliefs and the way they have done things for many, many years.” -JD, CIO of Fortune 500 Company

A recent survey of ERP projects revealed that companies listed their top two barriers to success as change management (73% ) and training (44% ).

-Benchmarking Partners Survey

It’s a challenge to get to the top…

…but when you reach it, a new world awaits…

Key Considerations • Upfront planning

• Early identification of gaps and issues • Early participation • Early management of organizational change

• Understanding of the bridge from “as-is” to “to-be” business processes

• Timely completion of deliverables

Major Change

• Excitement

• Interest

Design Build & Test Train & Deploy Go-Live/Support

• Executive support

• Volunteerism

• Safe environment

• Achievable goals

Creating the Pathway for Success

Expected Reactions During Major Change Efforts

• Conflicting requests

• Realization of impact

• Need for affirmation

• Place like projects on hiatus

• Recognize cooperation

• Prioritize spending

• Define rewards linked to project success

• Top-down communications

• Resistance to change

• Confusion

• Unrealistic expectations

• Mitigate risks

• Execute change actions

• Manage the “end run”

• Acknowledge contribution/ implement rewards

• Communication of upcoming changes

• Lower productivity (initially)

• Desire to revert

• Learning curve

• Focus on achievements

• Celebrate success

Implementation Lifecycle

Evaluate

Project Planning

Business Design

Build & Test

Train & Deploy

Go-Live Support

Sustain

Evaluation Phase GOAL: Define business processes and future business needs to select the right-fit ERP system and implementation partner.

• Business review workshops

• Business and technical requirements

• Validation of software functionality

• Implementation partner

Evaluation Phase (cont’d) Key Milestones • Document and analyze as-is business processes • Business needs assessment • Business case • ERP software RFP • ERP software evaluation and subsequent selection • Integrator RFP • Integrator evaluation and subsequent selection

Key Deliverable ERP Software and Implementation Partner

Representative Work Products / Deliverables / Outputs • Assessment of current administrative systems • As-is process maps with supportive narratives and analysis • Needs assessment report • Business case • ERP implementation duration estimate • Specifications and RFP for ERP software and final selection • Specifications and RFP for implementation partner and final selection

Evaluation Phase (cont’d) Your Role • Confirm documented processes are complete

• Attend interviews on current business processes

• Give input for business requirements

• Identify improvement opportunities that can happen “now”

• Identify and document master data issues

Project Planning Phase GOAL: Document initial project plans.

• Detailed planning

• Detailed scoping

• Defining process review workshops

• Defining implementation methodology: o Multiple release strategy by module o Multiple wave implementation by department

Project Planning Phase (cont’d) Key Milestones • Detailed project scope signed-off by project sponsors • Detailed project plan: release strategy, business process design standards, development standards,

configuration guidelines • Project team to support design • Project Documentation Strategy and Standards completed and signed off by project sponsors • Project kick-off meeting held • Quality check completed

Representative Work Products / Deliverables / Outputs • Project team organization structure • Steering Committee organization structure • Updated project scope • Inventory and review planning deliverables and work products • Testing strategy • Technical architecture strategy • Organizational Change Management (OCM) strategy • Initial communications plan / framework • Issue resolution procedures and risk management plan • Complete ERP jumpstart training • Scope control / procedures

Project Planning Phase (cont’d) Your Role • Review plan key dates to ensure availability for:

– Blueprint workshops – Testing – Training

• Define master data cleanup activities and incorporate into project plan

• Ensure team member availability for project (all jobs backfilled)

Business Design Phase GOAL: Document implementation requirements. • Detailed description of business requirements

• Defined technical requirements to enable those business

requirements

• Defined organizational impacts

• Action plan for implementation of approach to manage impacts to organization

This includes: • Creating system technical design

• Defining required custom programming

• Establishing development system ready for prototyping

Business Design Phase (cont’d) Key Milestones • Development technical environment installed • Business process workshops completed • Business processes designed and documented • Interfaces, conversions, enhancements, bolt-ons defined • Proof of concept built and demonstrated • Business design/blueprint created and approved by project sponsors • Reconfirm scope of project • Quality check completed

Key Deliverable for this Phase: • Business blueprint document Representative Work Products / Deliverables / Outputs • Updated communications plan • ERP organizational structure • Business Process Definitions (PDDs) • Business Process Master List • Business Process Flows • Business Process Procedures (BPPs) • Business Requirements (Validation) • Documented gaps between requirements and baseline • Technical Design – Reporting, Interface, Data Conversion, Enhancement, and Forms (RICEF) Inventory and

Detailed Definition Documents • User roles / authorization profiles

Business Design Phase (cont’d) Your Role • Participate in workshops • Identify:

– Missing functionality – Opportunities for automation – Key reporting requirements – Business process implications to be addressed during the build/test phase:

Process Change: Closing Schedule Skill Change: Greater Responsibility Organizational Change: Standardized and Centralized Master Data Cultural Change: Reporting

• Capture impacts from end user perspective (for Change Implication Matrix):

– New or changed activities – Work steps

Change Implications Collected During Business Design

Change Implications

Assessments

• Change Readiness Assessments • Leadership Alignment Assessments

End User Training

• Terms and Concepts • Business Process Training • System Training

Communication Plans

• Broadcast Communications • Deployment Network key messages • Targeted User Group specific

messages • Customization of Roadshows

Organizational Changes

• Organizational Impacts • Job / Role Impacts (RtPM) • Labor Relations Issues • Policy & Procedure Adjustments

Leadership Action Plans

• Managerial Changes and Executive Support

• Risk Mitigation Plans

Build & Test Phase GOAL: Configure system to specifications of business and process requirements documented in Business Design/Blueprint. Verify system is:

• Complete

• Stable

• Ready for transfer into production

Build & Test Phase (cont’d) Key Milestones • Baseline configuration and confirmation completed • Final configuration and confirmation completed • Conversions programs developed • Application interface programs built • Enhancements completed • Bolt-on configuration and enablers built • Reports created • Layout sets created • System integration test completed • Quality check performed • End user training developed Key Deliverable • Final Configured Enterprise System

Representative Work Products / Deliverables / Outputs • Production Support Plan • Cut Over Plan • System Test Plans: Integration, Volume, Stress, Failure • Test Results and Test Problem Reports • Updated Business Process Procedures • Custom Development / RICEF • User roles / authorization management • End user training materials

Build & Test Phase (cont’d) Your Role • Identify and assign users appropriate access

• Ask certain users to attend training classes

• Complete translation tables and data cleansing

• Participate in cutover rehearsals and approve data validations

• Identify and communicate key business changes

• Define test data sets, test conditions, and scenarios

• Participate in testing activities (try and break the system)

• Sign off on final integration test

And, finally, become a super-user

Train & Deploy Phase GOAL: Resolve crucial open issues. Validate the readiness for go-live: • End user training

• Site preparation

• System management

• Cut over activities

Train & Deploy Phase (cont’d) Key Milestones • Conversions completed • Testing completed • End user training delivered • Help desk established • Technical environment tested • Final approval for go-live agreed

Key Deliverable • Cut-over to the production system

Representative Work Products / Deliverables / Outputs • Production ready checklist • Approval for Cutover • Go-Live Assessment • Benefits Realization Testing Plan • End user education materials • COE procedures • Help Desk procedures • Data conversion checklist • Updated Cutover and Production Support Plan • Go-Live checklist • Contingency plan

Train & Deploy Phase (cont’d) Your Role • Ensure attendance at training sessions

• Participate in final cutover

• Continue department specific communications and change management activities

• Ensure transition sheets (old way vs. new way) are adequate to perform the job

• Play in training environment (get ready)

• Confirm data is ready for conversion

• Document SOD conflicts and verify that mitigating controls are in place

• Identify any issues before go-live:

– All users have been trained – All data is cleansed – All transition documents are adequate – Your department is ready to go!

Go-Live Phase GOAL: Move from a pre-production environment to a live production operation. This includes:

• Defined hyper-care support for the organization

• Defined long-term support for end users

• Daily go-live status update calls

This phase is used to: • Monitor system transactions

• Optimize overall system performance

• Perform break/fix

Go-Live Phase (cont’d) Key Milestones • Go-Live completed

Key Deliverable • Stabilization of live system

Representative Work Products /

Deliverables / Outputs • Project review • Support Effectiveness Report • Approval for production • Enterprise scorecard • Business Process Validation • Training Effectiveness Report

Go-Live Phase (cont’d) Your Role • Ensure all users have signed in to check connectivity

• Begin transacting in new system

• Validate post go-live conversions

• Attend daily go-live meetings

• Bring forth constructive feedback on:

– System issues – Security issues – Process improvements – Additional functionality

• Be available for break/fix testing

And most of all, be patient. Don’t expect perfection.

Stabilization Phase GOAL: Identify and implement additional functionality or refine business processes from go-live. This phase is used to (if needed): • Rectify errors in ERP system or IT infrastructure

• Modify business routines

• Improve system performance

• Repeat training or provide additional training

• Implement updates or new releases

• Perform continuous improvement and system

tailoring

Stabilization Phase Your Role • Identify business routines that can be modified further with new system

• Perform repeated or additional training for users that may need more time

• Test new functionality for roll-out

• Communicate new functionality

And, finally, leverage the tools and technology to refine business processes and perform continuous improvement for the Auditor’s Office.

CONTINUOUS IMPROVEMENT

Things to Consider User communities that live on ERP systems have managed the change.

Benefits • Unprecedented collaboration and communication across departments • A single integrated solution (ERP) results in:

– Tight integration between HR, procurement, payroll, and finance – Transformation from transactional processing to analytical process (automated accruals,

etc.) – A cleansed Chart of Accounts – Focus on more strategic business activities

• Real-time access to data Challenges • Steep learning curve for system and new business processes • Requires knowledge of end-to-end business processes to

understand downstream impacts

Leverage Lessons Learned History repeats itself. User communities live on ERP systems and share their insights: • General Observations

– Value and importance of Super User Program – Involve your Super Users early – Leverage insights and lessons learned – Anticipate initial drop in productivity at Go Live – Learn full end-to-end business process – Leverage real-life business scenarios provided during training

• Data Cleansing & Cutover – “Data cleansing is a must for the department.” – Make resources available to devote time to data cleansing – Ensure validity and consistency of the data – Start dialogues now on balance conversions – Leverage expertise of available project resources for assistance

Lessons Learned (Cont’d) • Testing

– Plan and prioritize resources to participate in testing and other project activities – Assist in customization of department specific scenarios and thoroughly test department – Drive understanding between system solution and business process changes

• Training – Understand correlation between user roles and training courses – Don’t overmap (not everyone has to be a user at Go-Live) – Create training plan – Use specific business process scenarios for your department – Take advantage of project team knowledge early – Complete the hands-on exercises during class to facilitate learning

Lessons Learned (Cont’d) • Super Users

– Support Super Users in project activities as soon as possible – Encourage Super Users to use project tools to familiarize themselves with the system

and business unit processes

• Deployment & Communications – Dedicate resources that can assist with disseminating department-specific messages to

users – Set up SWAT Room to give users one central place for training and support – Create department-specific user guide:

• Key support contacts (including Super Users) • Department-specific policies (such as Procurement) • Project types and coding • Chart of Accounts • Company Code • Cost/Profit Centers

Questions