Managing a Business Plan Systems Application

This is an excerpt from a document originally written by George Miller, founder of ProAction. It has been modified and updated by Paul Deis, ProAction CEO. Best Practices This article is also available on our website: ProAction – Generating

Overview

Success or failure of a major business systems project is often doomed by the way the foundation was laid. Management efforts of big changes, such as ERP, Supply Chain Management and Electronic Commerce is often virtually the entire enterprise, involving multiple processes and departments. This document focuses on how to avoid some of the pitfalls through improved project planning. Quite simply, do not rely on sophisticated tools and methods. It is written as if to a project manager.

Topics covered will be an overview of: Letter, objectives, priorities, rules of the project, communications, education, the project plan, resources and organization, members of the descriptions of the team, personnel management, management support, budget, financing, third party involvement, hardware, software, policies, procedures, definition of tasks, sequencing, and estimating resources.

What is a "system"?

Before trying to plan and manage systems from a leading company the project would be desirable to reach agreement on a definition of the word:

System – an organized manner to achieve an objective. A system consists of missions, leadership, goals, targets, indicators, policies, procedures, education, training, organization, personnel, tools-that is not primarily one IT project, but modern enterprise systems tend to rely on information technology.

Address all elements of the system is shown above the plan and successfully manage a business system project.

Paving the way

Management Support

Most of us are aware of the importance of "management support" of a large business change effort in an organization. This support should be reflected in the writing and the visibility of the project charter, is described in the following section. It should also be exercised by each key management once the project is questioned for resources, focus, or leadership. Because of the breadth and number of functional areas involved in implementing a complete business system, was compulsory for achieve understanding at the executive level for what should be done, why and how they will do. At least one executive sponsor true (definition of a sponsor true: someone who controls the resources and whose work may depend on success) is needed to increase the chances of success at a tolerable level. Sponsor is necessary to promote, defend, counsel and provide resources for the team. This is definitely not something to delegate to lower level people.

Charter

The "Letter" is a clear mandate for the project team, generally consisting of the mission, objectives, scope, direction and authority. This is an agreement between senior management and project management. For best results, it must be repeatedly communicated throughout the organization and respected.

The letter should be brief, preferably one or two pages. Its mission statement is to be a powerful, yet easy for all employees, suppliers and clients could relate to, such as: "Being the industry leader in quality automotive wire and customer service. The objectives should be clear, concise and measurable, such as "offer same day service on stock themes of 12-31-96", "Achieving Six Sigma quality in the assembly by 6-30-97, "or better, however," Glasses in an hour. "A major project will probably have multiple objectives.

"Scope" account the computer (and elsewhere) how far they should go. "Reengineering the laboratory test operations for the next millennium", for example, seems give the team a little more latitude to "replace the outdated laboratory computer system."

Address and statements of the authority help to make clear to all concerned to get it done and how far. Example: "The project team comprises representatives Comet direct each division general manager who shall have full authority to formulate and adopt policies and operations of changes within the scope of the project charter ". Try to discuss with you at the next staff meeting, especially when that statement comes directly from the President and signed by all of staff / her.

Priorities

The major change efforts, such as business systems projects, consume a large share of resources organization and "Mindshare". There are a limited number of similar outreach efforts, to be carried out simultaneously. This project should be in the first three or four of the priorities of the organization at runtime, if it is to have a reasonable chance of success. If no more than 4-5 major company priorities change, the probability of success is much greater.

Project Planning Phase

Then the team can proceed with the definition of products, activities, performance standards and resource requirements needed to carry out the mission and objectives of the project. More specifically, this involves creating a justification for the project, Project Work Plan, Communications Plan, Education Plan, Budget, funding and Member of Task Descriptions. . . .

Project Justification

No matter what he tells you, be sure to make a project of "justification", "business case" or "cost / benefit." If this is not done, it is much harder to defend its priority projects and funding for other worthy efforts that compete for the same resources, or the end, the first of the month of "crisis" requiring attention. You may have to make an approximate cost / benefit analysis before receiving funding at all.

No matter what you call, the justification must describe all costs attributable to the project, including people. Opportunity costs should be listed separately. All benefits should be cited, whether or not easily quantified or translated into dollars. "Soft" benefits need to be stated as "in need to survive, since competitors probably more than 75% of your Internet business within two years. "skeptics and fans need to" wash "the analysis, as well can be scrutinized later.

It's a good idea to run multiple scenarios based on different business conditions and levels of success. Skip fancy mathematics justifications are not all that accurate anyway, even if they were, most people do not understand or care to read a great complexity. One justification is more like a reference point of a micrometer.

Project Work Plan

Despite all the books, training and software tools developed to assist project managers in wonderful performance of his duties as appointed, the project planning is still hard work, not often enough is done well. While these aids are useful, are no substitute for experience, trial and a good methodology. Draft basic plan elements to be included are: deliveries, activities, description of activities, sequencing, responsibilities and resource requirements, and Timing. Due to the difficulty of dealing with a large number of tasks on a major project milestones should be included in the plan. These are the main things that most of the People will be looking to measure progress. Do not get stuck in the minutiae of detailed tasks.

Start with the supplies, which can be derived from the Charter. Example: An application, working order on-line collection system input specifications. Activities to be developed then it will lead to the fulfillment of benefits. A characteristic of an inexperienced project manager is the development of excessive activity detailed list then create a reporting nightmare and make it more difficult for others to follow to understand the plan and its status.

How to simplify the plan: 1) – identify and show the plan of major milestones, such as "Go live" with the new inventory system. Show dependent activities necessary to achieve each step. 2) – Ensure that activities contained in the plan do not get too detailed. For example, "load existing inventories" is probably enough. List of existing inventories, " key existing inventories, "" Check that the details are correct "and" correct and re-enter items wrong "are probably too detailed. These should appear in descriptions of independent activities, "to be administered by designated persons responsible for carrying out.

To give an example, we had to participate in a very nice plan for a global project systems business for $ 100M + discrete manufacturer. It had with 32 stages, 340 activities in the plan. There were a total of about 2400 individual steps in the description of the activity to support the lists used by members team to manage its activities. Note that these steps were not used as nodes of the network planning.

Sequencing and timing may be better shown graphically in the plan and could include the start and end dates.

Each activity must be assigned to a specific person responsible for carrying out it. In recent years, project managers have succeeded in assigning tasks to smaller teams, if said teams are small, cohesion, and the corporate culture is conducive to it.

Resources required should be estimated for each activity. Definition of resources must be sufficiently detail to identify constraints, but not so detailed that it becomes a major task that was just created and maintain the plan. In a draft business systems, the key people are often the most difficult to program resources. Dollars and teams are most other resources. Once the resource estimates are complete, perform a time-phased resource load to determine the likely bottlenecks. Remember that this is based on estimates that resources can not cooperate, and the things can not happen as predicted or when. Therefore, being flexible!

The project managers each have their own draft format of the planning system, the type and software preferences. Some use simple Gantt charts, while others prefer sophisticated "impertinent" (Program Evaluation and Reporting Technique), CPM (Critical Path Method) or others. We recommend you choose the appropriate style and organization as well as the size and complexity of the project.

Contemporary software usually provides the capability for calculating calendar dates, critical paths, the total resource, helping to identify problem areas, and providing various levels of reporting.

Advice on the activities of the organization-not get them to agree to the team of modules, no matter what software and hardware people will say. In most cases, the organization of the modules of suppliers does not refer as well to its actual need of business process or sequence of execution. To keep the tail wagging the dog, find out how to run the business first, then how would on the implementation of the project. Hopefully, the selected software will have some relation to defined business processes, but this is far from precise.

Sequence of tasks according to the priority of the desired results, and to some extent, the priority tasks must be completed to provide final results. For example, if the priority is to improve order processing out first, do not let the software vendor or other person will say that the bill-of-material must fully implemented first. In fact, it may be necessary to implement part of it first, ie the part and description files.

A plan typical set could be organized something like this:

1. Project Organization (bases, planning)
2. Education
3. The definition Requirements
4. Improving existing systems
5. Cross link project
6. Software / hardware selection / procurement
7. Conference room pilot, training
8. Application (main process)

Communications Plan

Understanding Peoples and perceptions of the impact, progress and success of a project have a significant impact on project success. In this age of "media" and "PR", it is surprising to see the lack of skill and attention to planning of communications systems in large enterprises or change management projects.

A good communications plan keeps all stakeholders informed of what to do and what the status of the project is, and helps motivate them to be part of success. It may consist of notes, bulletin boards, newspaper articles, newsletters and presentations to employees, suppliers, customers, press, including T-shirts. Do not overdo with hokey trinkets. Project staff and sponsors must participate in the management of communications. Department meetings, the "open house" and "day provider "are examples of communication tools to be used.

Even competitors can be targets of a communications plan for the "misinformation" to demoralize or even hire your people!

Education Plan

Make a major change in an organization means that people need to do things differently. Doing things differently means that people should know what to do differently and why, if they will accept the change. This learning a broad scope of the business plan can not simply be left to chance but must be part of a coordinated, integrated education. It covers the philosophical changes and conceptual, as well as details of work performed. Executive can span across blue-collar levels of the organization as well as going out to get suppliers and customers.

For example, a new order entry system field may include salespeople, sales management, customers can use direct the new systems, internal order management, engineering, procurement, planning and accounting personnel. All these people need more or lesser degree, to understand what is being done, how it will affect them, and what specifically to do differently.

Educating systems of users and their managers is the task not only education. It will also be necessary to educate executive sponsors, steering committee and team members project, and perhaps even customers and suppliers. Do not make the mistake of falling behind, because it is later realized that team members need education and training before they can perform many of their assigned tasks.

Real education activities can be delivered by resources inside and outside, including project staff, trainers, representatives of third parties such as consultants, software vendors, academics, clients, or even NGOs.

Budget / Funding

Chances are, at least part of the budget and funding will be required before there is a detailed work plan and defining resources. The money for the project plan in detail may not be available until some budget materializes. The amount of the budget can always be done little to do with the resource requirements, but may be based on available funding, politics, external pressures, or how well the project is sold.

How the "budget" is only part of the struggle. In fact, get money, approvals and people is another matter, especially in large bureaucratic organizations, and especially if multiple organizations have provided or must approve the budget disbursement.

Member of Task Descriptions

People often are assigned to project teams, without a clear understanding of why they are there or how to conduct themselves after arrival. Another way to improve performance is to prepare job descriptions for all involved, from executive sponsors and project managers, down to the members individual team and department links. Job descriptions should contain objectives, relationships of dependence (where part-time or "matrix" team members, it is most necessary information to clarify the relationships), rights, qualifications. Use them to structure the activities of team members, to communicate with their responsibilities to the organization, and to assess the team members, if applicable. If possible, try to be applicable, as this is one of the levers Some project managers have in this era of "matrix" organizations.

Getting It Done

With proper planning, implementation is much easier. This section deals Resources and Organization and managing the agenda to help improve performance.
Organization / Resources

People, money and equipment are the main resources needed. People are the most difficult, so let's concentrate on them. Even in large organizations, there seems to be a surprising lack of people with:

• leadership talent, the ability to motivate people and make things happen
• broad knowledge and understanding of business processes. "Rightsizing and organizational" flattening "in recent years have fact that shortage worse in many companies.

Thus, people who have these attributes are the hottest commodity around, because they are scarce. The project aims manager will probably spend more time and effort trying to obtain, maintain, manage and motivate people than anywhere else.

The needs of people:

• Leadership – A project sponsor (s) is the first requirement. A major systems project business change probably will not even leave the gate without one and will not succeed without a good specific sponsor.
• Project Manager – Ideally, someone with a good reputation, well connected within the organization, leadership skills and deep business knowledge and systems desired knowledge.
• The project team members – people with the background and skills necessary to perform the various tasks required to achieve the objectives. This includes a mix of people with business, industry and technical equipment and technical skills.

Therefore, you do not have many these people? You are not alone. The above desired attributes of the sequence of priority, as a compromise accordingly. Look real "newcomers" showing signs of becoming what it takes, and which will become the paper over time, mentoring, education, experience and education free.

Once a project manager is, locate the project team members with complementary skills. Request the best people available. If a good job of "selling" the need for the project and benefits to the constituent organizations is done, the recruitment will be easier. Unfortunately, not all executives who share the same perception of the importance of this project, and may try to "dump" less competent people in the project. This is another project of "make or break" question. Few incompetent can be absorbed, fatally, without compromising quality, productivity, and even the credibility of the overall effort.

In terms general internal candidates is preferable, especially as Project Manager. A few new hires or consultants can be absorbed, in fact some new blood is desirable. Be careful to put in too much of a place. For example, the author witnessed a power struggle between the residents, "Homies" and boys "GE", which became destructive – Corporate gang warfare.

By Structure / Reports relations, a number of possibilities. For example, manufacturing companies do tend to have an executive director of the project a steering group composed of other executives with skills or interest in it is made. This group is responsible for see that the correct address is set, resources are provided, and that things happen as desired.

The steering group normally appoints a director project and a project team is formed. This team should have people who can do the planning and implementation to achieve the project objectives. Here different opinions about the time if the team should be full, part time, external or internal. We have found that a small core team of full-time or at least full-time Project Manager it is only mandatory for the success of a major project systems business in all but the smallest organizations. Other members are often on the sale of their "services", either full or part time. Although it seems that a team of full-time members would be the ideal case, in practice, which seems to be the case. This is probably true, because members with close ties to their areas for improvement, "shop" in the department of its components and be closer to the "real world".

Larger teams sometimes appoint people to the quality of supervision, different control, special and administrative positions. Do not overdo this. It's easy to kill large numbers of people in support "for the positions of other team members, who, now that I think her, who are themselves supporting people. Smaller organizations, however, tend to combine positions. Recently, we found a promoter who also was the project manager and team member materials management.

External resources are almost always used to fill nonrecurring skill needs, to educate and train people in the company, to provide advice, counsel and audit the system. There is nothing magic about the participation and management of outsiders, while recognizing the differences in motivation, compensation, and organization.

For example, management consultants, though, are professionals Objective. They are motivated to do good work be recognized, be independent and make money. The good work of you, not for you. The recognition that the subtle difference can make a more successful manager of the project. Management consultants may inform the project manager, but often there is value in having to report the steering committee or in another part of the executive management. Some project managers do not like this, but often there are advantages to offer this high level of visibility.

Developers often take great pride in their work, technical skills, and can take pride in being different from the types of businesses that run the program. Listen their concerns, learn from them, give her space, but the trains on time.

Sellers may assign "project managers" or "managers accounts "to help. Make sure they know which" tells "what really is. Usually there is no need to make a big deal about who is dependents, unless they are extremely dense or selfish. In fact, they may know more than you about their areas of expertise, which is why we paying the big bucks. Get the value of their money, and remember, these people often are under increased pressure to bring in "billable hours" for their companies to carry in your project on time and on budget. Not only are we getting from vendors, the same is true of almost all foreigners, including consultants. They should always Clear objectives, schedules, results, budget, business liaison / driver, and performance metrics.

Management Agenda

Much time and effort can be wasted if the project is not implemented effectively. Good people, organization and planning projects go a long way to help achieve this. Beyond that, the Rules of the project, issues lists, and list management activities can further improve a project.

Draft Rules of

Performance standards help to structure the process and make things work well, but do not overdo it. There must be certain customs, methodologies and tools used. These should be communicated in a specific way. If left to chance and informality, these default to practice usual, it's something that might need a conscious effort to change. The rules must include rules for the meeting, the approval process, procedures for making things, quality standards, etc, or problems will occur. For example, one of the clients of the author had a habit of making big changes without further procedural formally write the procedures, gaining consent, or evidence first. After a disastrous experience, this unwritten policy was finally reversed and a formal process of change introduction took place.

Questions Lists

One way to better manage the project and meetings more productive is to use the Work Plan and a draft list of issues as the implementation of the priority agenda items for meetings of the project. Many projects have meetings that are largely a waste of time because the team does not stay focused on work that is assigned to do-finish the project. Most meetings the project should focus on outcomes, tasks and issues with them.

During the course of any project, team members and other parties interested perceive different problems and opportunities. These should be recorded in the list of issues and assigned: those responsible for solving the priority, timing, and an explanation each subject. The project team is based here and the work plan to help focus their energies on what to do.

As more is learned about problems and solutions are developed, updating the list. Closed issues remain for the resolution recalls and issues need not be 'solved' more than once.

Activity List Management

Make sure the job gets done right is one of the most difficult tasks for a project manager, especially in a major project business systems, often across a number of departments, functions, processes and techniques. The first problem is being able to recognize if something is done and well done.

The second is how much has been completed in the allocated resources (earned value), and if the resources actually spent. This is especially important when a team member "Department" is charging the project for their time.

The third problem is how to communicate through diplomatic channels need to do better or faster than what has been done, especially if there is a dispute as to value and quality cattle the work done. This reality has become more difficult in the current era of "empowerment" and "equipment", when the efforts of a manager projects are more likely to be interpreted as micro-management.

The recommendations of the review sessions, have the team member sub team or walk through what has been achieved through presentations, write-ups, or demonstrations. If the project manager is not technically competent in the area under discussion, providing a peer review group, as users, external experts, or "clients" of the process under consideration. If no specifications or requirements, control work against these. Ask that examine how far along they think they are, how long it has invested, and the estimated balance to go. Ask about any unforeseen problems, or recommended changes. Ask respondents to the same questions, possibly later. Check the weather working against value claims to cattle, compared to original estimates, and compare with what you observed. For example, if someone believes that spent 10 hours a week at his task, but reported 35 hours a week, and has not seen her around much, and work is well behind the power curve, can be a problem.

Initially give members Team (s) for the benefit of the doubt, since they usually have other responsibilities, or volunteers who have taken on more work to help with your project.

The True nature of a Business Systems Project

We have heard about or encountered a number of projects that went bad because the management was not aware of the true nature of the tasks. A draft business systems is not primarily about computers or software. Of course, they play an important role in the companies now, but not the main challenge. The main challenge is, simply said, getting people to realize what has to change, then change to adapt to it. If there is still doubt about this, go back and reread the definition of a system near the top of this document. These are people, leadership, policies, procedures, etc. If you still have doubts, interview executives of companies that succeeded or failed in large projects. They often speak of commitment, people and education as essential-win or lose.

A word of advice on the selection of hardware and software for the most important business applications. First, is too important to leave to hardware and software people. Today, these options can help make or break a company. Embedded in the software and hardware management philosophies and emphasis implicit decisions about the company, the response times and industry standards. People directing the company must be involved to ensure that these elections are made, even if only to help instill "ownership" of his party and of those who use these new tools. You still need experience, but do not let them turn the selection into a contest to find the striking "platform" or more "efficient code." For more tips on selecting, on the website ProAction find excellent information on the process of SoftSelect, our best practices in the area of enterprise software management and selection.

Then you can not understand how or even if the software will work for your company without a test drive intensive, usually referred to as a pilot, "the Chamber". This is not just a brief demonstration of Razzle Dazzle provider, or even halt efforts to play with the screens on their own, but it is a sophisticated business simulation, in charge of your company and with the support of training competent technical resources, you can read the article on this subject free ProAction website or the purchase of our best golf practice – Conference Room pilot.

In summary

The main management systems of a draft business plan is a very important undertaking. Hopefully, we helped to broaden their understanding of the scale, scope and complexity of the task, although it is only possible to summarize some important points in this short article. You probably has noted that the basic principles of project management were adapted to suit the nature of the company throughout the change project management business systems. The author uses a manufacture of a model, but this approach can be easily adapted to other situations. It is recognized that there are other possible approaches, or perhaps both longer valid.

ABOUT THE AUTHORS

George J. Miller, CFPIM, is founder of ProAction. Before you sell the company to Paul Deis, George had worked with dozens of companies in assignments involving productivity, quality and service improvement, business systems, change management, acquisitions, divestitures, expert witness testimony, and others. ProAction Before founding in 1986, was Vice President of Marketing for Western Data Systems, Director of Planning and Development and the Assistant Director of Operations for Purolator Technologies (PTI), Consultant for Booz-Allen & Hamilton, and Manufacturing Systems Manager for Becton-Dickinson.

Paul Deis, CFPIM, is CEO, ProAction. He brings over 25 years experience consulting and executive to their work, including detailed work with nearly 60 companies. Before the acquisition of ProAction, Paul's experience includes managing a small business ERP software, which refer to other companies, the previous work with ProAction, Manager, Deloitte & Touche, VP Manufacturing Raypak, Inc., where he was very successful, with Lean initiative management principles, and dozens of projects in the areas of enterprise software, operations management, crisis resolution, in a wide variety of industries, business types, and scales. Our website: ProAction – Generating Best Practices

About the Author

Paul Deis, CFPIM, is CEO, PROACTION. He brings over 25 years of consulting and senior executive experience to his work, including detailed work with nearly 60 companies. Prior to acquiring PROACTION, Paul’s experience includes running a small ERP software company, leading other consulting businesses, prior work with PROACTION, Manager at Deloitte & Touche, VP Manufacturing at Raypak, Inc., where he was very successful with an early Lean management initiative, and dozens of projects in the areas of enterprise software, operations management, crisis resolutions, in a wide variety of industries, business types, and scales.