ERP Implementation Best Practices A Success Story Copyright

ERP Implementation Best Practices : A Success Story Copyright , Roger Rigelhof. This work is the intellectual property of the author. Permission is granted for this material to be shared for non-commercial, educational purposes, provided that this copyright appears on the reproduced materials and notice is given that the copying is by permission of the author. To disseminate otherwise or to republish requires written permission from the author.

Implementation Best Practices • EDUCAUSE – A Survey found similarities and differences in CFOs’ and CIOs’ perceptions of Best Practices • Pollyanne S Frantz, Arthur R Southerland James T Johnson, ERP Software Implementation Best Practices, EQ, 25 (4), 2002

Agenda • The ERP Implementation • Implementation Best Practices – How they were viewed by CIO and CFO – How we implemented them – Effectiveness (subjective) • What is success, anyway?

ERP Implementation • Mc. Gill University, Montreal Canada – 30, 000 students – Research intensive • SCT Banner – Finance June 2000 – General Person Aug 2001 • First module for Student – HR/Payroll January 2002 – Student • Web Registration April 2002

Implementation Best Practices • Definition – A best practice is what results when qualitative comparisons are made between similar organizations business practices. OR – A best practice is any activity that an organization finds successful in accomplishing a task.

Best Practice 1 • Executive management should endorse the ERP project. – High ranking by both CFO and CIO (mean above 4. 6 on a 5 point scale).

Best Practice 1 Implementation • Project Sponsors – VPs – Provost and VP Academic – VP Finance – Deputy Provost and CIO Subjective Assessment: Essential to success

Best Practice 2 • Executive management should remain actively involved throughout the implementation. – Mean ranking below 4. 6 on a 5 point scale

Best Practice 2 Implementation • Executive Policy Committees – VP, AVP, DP-CIO, Director / Registrar, Project Director and Project Manager – Project Governance

Project Governance CIO Project Sponsor Project Director PMG SIS Policy Project Manager SIS Team CSA SHARD FIS Policy Project Manager FIS Team HR Policy Project Manager HRIS/Payroll Team HRPM Project Manager Project Services Team

Best Practice 3 • ERP software implementation responsibilities should be shared between the information technology department and functional areas where the software is being implemented. – High ranking by both CFO and CIO

Best Practice 3 Implementation • Policy committees involved senior management in the implementation • Implementation teams consisted of functional and IT people Subjective Assessment: Essential

Best Practice 4 • Executive management should be cognizant about the institution’s ability to adapt to the organizational changes that occur when ERP software is implemented. – High ranking by both CFO and CIO

Adapting to an ERP “Go-live” Productivity 18 Months Implementation 3 month preparation period ? ERP “Shock” Time Benefits

Implementation ERP Shock Relief • SIS and FIS specialists • Funded by IST, coordinated by project manager and training specialist • Hired by colleges to support Faculty • Training, liaison, advocates Subjective evaluation: Important

Best Practice 5 • A project manager should be assigned full-time to the implementation. – High ranking by both CFO and CIO

Best Practice 5 Implementation • That would be me! – An Academic with some previous experience with projects Subjective Assessment: Essential

Best Practice 6 • The project team composition should represent all functional areas where the software will be implemented. – Perceptual difference between CFOs and CIOs – CIOs significantly more likely to agree

Best Practice 6 Implementation • Finance System: – Core team of managers from Accounting • Broad consultation within the entire financial community – esp for Cof. A – Functional specialists in Purchasing, AP, AR, Budgeting, Grants

Best Practice 6 Implementation • Student System – Managers from Admissions, Registrars, Student Records Officers from Colleges of Arts, Science, Grad Studies – SROs used to test “mock” registration – Students used for communication plans etc.

Best Practice 6 Implementation • HR/Payroll – HRPMC (HR Project Management Committee) met regularly. Subjective Assessment: Essential

Best Practice 7 • Project team members’ normal job responsibilities should be reassigned to other employees for the project duration. – Perceptual difference between CFOs and CIOs – Lowest ranking by CFOs

Best Practice 7 Implementation • Temporary promotions and backfilling • Replacements were trained before Implementation started • Finance and HR systems – Managers spent 4 days/week at Project HQ • Student System – 100% at Project HQ Subjective Assessment: Essential to do one or the other. Advantages/disadvantages either way.

Best Practice 8 • Employees should receive training on how to work as a team on a project before implementation begins. – Perceptual difference between CFOs and CIOs – CIOs significantly more likely to agree

Best Practice 8 Implementation • Partially implemented – We did a relatively small amount of team training – In Finance and HR we had existing teams

Best Practice 9 • The institution should retain ownership of the implementation process. – High ranking by both CFO and CIO

Best Practice 9 Implementation • Project Definition Document • Consultants were used, but the emphasis was on skills transfer

Best Practice 10 • A separate dedicated work environment specifically created for the project team aids implementation. – Perceptual difference between CFOs and CIOs – CIOs significantly more likely to agree

Best Practice 10 Implementation • Project headquarters – Functional and technical users brought to a work environment specifically dedicated to the project team and to building the system. Subjective Assessment: Essential

Best Practice 11 • All employees who will use the software should receive thorough training. – High ranking by both CFO and CIO – Perceptual difference between CFOs and CIOs – CIOs significantly more likely to agree

Best Practice 11 Implementation • Training room and training team (approx 6 trainers – as many as 30 at times!) • Basic Navigation course plus: – Finance: 5 courses – HR: 3 courses – Student: 23 courses • 4, 840 Employees attended 1 or more sessions As of May 2003: – Total number of sessions: 1, 166 – Total number of attendees: 7, 094

Best Practice 11 Implementation • Detailed instructions for each and every form • Banner Help Desk – FAQs, How-tos • Hands-on obligatory sessions – You only get access to the forms for which you have had training • Drop-in labs (bring in your real work)

Best Practice 12 • Executive management should help employees network with peers at other institutions undergoing similar implementation initiatives. – Mean ranking below 4. 6 on a 5 point scale

Best Practice 12 Implementation • User Group Conferences • Summit • Active participation Subjective Assessment: Improves quality and efficiency of the implementation

Best Practice 13 • It is often necessary for an institution to change its administrative processes to fit the software. – Mean ranking below 4. 6 on a 5 point scale

Best Practice 13 Discussion • Vanilla or Vanilla with sprinkles • System must be acceptable to end users • HR, Finance more likely to change processes than Student Records

Best Practice 14 • Outside consultants can facilitate implementation efforts. – Mean ranking below 4. 6 on a 5 point scale

Best Practice 14 Implementation • Vendor Consultants for hands-on training of implementation team, technical team • Consultants were used to facilitate and validate • Process Improvement Assessment • Total Consulting: About 4, 000 hours Subjective assessment: Essential

Best Practice 15 • Implementation information should be continuously communicated to the campus community. Mean ranking below 4. 6 on a 5 point scale

Best Practice 15 Implementation • • Banner. Speak – quarterly newsletter Website Information sessions before each go-live Information reports to Deans, Senate Committee on Student Affairs, Senate Committee on Information Systems, Computer Users Committee Subjective Assessment: Essential

Best Practice 16 • Conversion of data from the old software system to the new should begin early in the implementation process. – Mean ranking below 4. 6 on a 5 point scale – Lowest ranking by CIOs

Best Practice 16 Implementation • For student system: – Converted all electronic “person record” – 450, 000 records – Converted all electronic Student records 250, 000 • Financial data was partially converted • HR Legacy system ( a relatively new system) was converted.

What is success, anyway? • Possible Definition Success is realizing your vision.

What is success, anyway? • We stated our vision in a Project Definition Document in 1999: • Our vision is of a Mc. Gill in which the constituents faculty, students and support staff, have direct access to secure data, and the means to accomplish certain administrative tasks. Thus students and staff would maintain the appropriate parts of their own records directly. Students, for example, would apply to Mc. Gill, be able to track their applications, register for their courses, request student aid, examine their records, via a form of universal access such as the Web. Academic staff would receive course rolls, submit marks, and receive support for academic advising via the Web.

What is success, anyway? • Possible criteria – On time, on budget • Only if the scope doesn’t change! • Only if Technology doesn’t change! – Are all end users happy • Unthinkable at an Institution where critical thinking is valued – Are they using the system? • If yes, the implementation is a success!

Banner Stats • • Cumulative Client User Logins: 1, 165, 323 Distinct Client Users : 2, 695 Current client logins (11: 00 Monday): 492 Distinct Web Users: 78, 891 Distinct student registrations: 46, 882 Cumulative course registrations: 380, 779 Current web logins (11: 25 EST): 269

Questions roger. rigelhof@mcgill. ca