THE IMPLEMENTERS’ DILEMMA

In the chapters to come, we’ll talk a lot about the “Proven Path,”
which is the implementation approach we recommend. The company
that follows the Proven Path can be virtually assured of a successful
implementation. The dilemma is that some companies may
not be able to follow the Proven Path, and the reason has to do with
software.
Let’s look at the three types of companies wanting to implement
enterprise resource planning:
Enterprise Resource Planning 19
2 Some call this a “second wave” implementation.
The first type of company has already installed enterprise software.
Now it wants to improve its business processes by implementing
ERP, and thus capitalizing on the ES investment. The Proven Path
will work very nicely for this company, probably in the Quick Slice
variant discussed in Chapters 13 and 14.
The second category of company has not yet installed a complete set
of enterprise software (although it may have installed a few modules
of an ES). ERP is a higher priority than ES; thus software issues
will be subordinated to the ERP initiative. This company has
what we call a “clean sheet of paper” and the Proven Path applies
completely.
In the third case, the company has already begun installing enterprise
software or is about to do so. ES is the priority. This company
may not be able to simultaneously implement ERP using the
Proven Path. Here’s the dilemma: workload. Installing enterprise
software can be an enormous task. Even with lots of people from
outside consulting firms, the time requirements for the company’s
people are very large.
Later we’ll discuss in detail why implementing ERP cannot be subcontracted
to outsiders. For now, take it on faith: An ERP implementation
is a do-it-yourself project; it requires intimate knowledge
of your business. The essence of implementing ERP is to acquire better
business processes, and these must be implemented by the people
operating the business.
That said, if these folks are pretty much overwhelmed with a) doing
their day-to-day jobs and b) participating heavily in an ES installation,
they won’t have the time or mental energy necessary to do
the hard work involved in implementing ERP. Thus this company
will not be able to follow the Proven Path. They may pay it lip service.
They may pretend they’re following it. But they can’t. They don’t
have the horses.
We call these companies “dilemma companies” and our advice to
them is simple: Don’t try to implement ERP simultaneously with installing
an enterprise software system if you aren’t convinced that
your people have the time to do it justice. Rather, we recommend that
you:
20 ERP: M I H
• recognize the dilemma,
• complete the ES installation,
• start to make a limited number of process improvements during
the ES installation, ones that won’t consume large amounts of
peoples’ time. (One excellent process that applies here is Sales &
Operations Planning, covered in Chapter 8. Another opportunity
is data integrity, discussed in Chapter 10.) As you make
these improvements, recognize that you are not following the
Proven Path, but rather that you are doing things that are consistent
with it and that will make the task easier when you begin
an ERP implementation.
Then, following the ES installation, you will have ceased being a
dilemma company and have migrated to the Type 1 company previously
identified. You have implemented ES software, and are now in
a position to initiate a Proven Path implementation of ERP. Bob
Stahl, a highly successful ERP consultant based in Attleboro, MA,
says it well:
The Proven Path was sound 15 years ago, before the onset of enterprise
software. It’s every bit as sound today. However, given today’s
very complex, hard-to-install software, it’s more important
than ever to follow the Proven Path correctly and with the right
timing.
Coming up in the next chapter: a closer look at the Proven Path.