Overcoming the challenges in deploying Dynamics AX 2012A recipe for a successful implementation

Joanne Green, OptimumPhilip StrideJohn Rosbotham, PwC

Philip Stridepstride@infodatasolutions.co.uk

OVERCOMING SOME OF THE “PEOPLE” CHALLENGES

“When he set off from the shore the sea seemed so nice...”

Management

Training & Skills

Product Delivery

Solution Development

Cost & Budget Planning

Why do projects not always succeed?

People

Process

Expectations

Summarised View

People Issues

• Lack of Training & Education

• Lack of Understanding of New Processes

• Lack of Buy-In from Staff

• Inadequate Resources

• Intra-Departmental Politics & Rivalries

• Lack of Senior Management Support

• Poor Leadership

SKILLS

MANAG-EMENT

BUY-IN

STAGES FOR BUILDING PERSONAL COMMITMENT TO CHANGE

T I M EStatus Quo Vision

CO

MM

ITM

EN

T

High

Awareness Individuals have heard

about Project Low

General Understanding Individuals are aware of benefits, basic scope and

concepts of Project

Personal Understanding

Individuals understand how the Project

Implementation impacts them and their job

Willing to AcceptIndividuals understand

and are willing to acquire skills required to

adopt the Project

Buy-InThis is the way work

is done - the new status quo

OwnershipIndividuals make the Project their own and

create innovative ways to use and improve

The Human Commitment Curve

Make sure the Board are driving it (& seen to be) & INVOLVED

Full Management Feedback Process

Keep the end objective in mind – ALWAYS

COMMUNICATION from the start

HR have a BIG role

It’s not an IT project

It’s not even a business project

It’s a PEOPLE project

Up-Skilling & Training – KEY One of the biggest areas of failure

Some Simple Solutions

Sure Step and Training

• Super User Training

• Staff profiling

• Final Trainer Training

• Define Training Process

• eLearning Development

• Quick Card Production

• Documentation Creation

• Training Centre Set-up

• Skill the Trainer

Catch up Training • .

User Self Revision • .• .• .• .

• Start Trainer Training

End User Trg • .• .• .• .

Define Trainers by Process/Site • .Define Training Programme • .

• Training Materials Development

Pre Go-live Audit • .

• Skills Audit

When in the project should we…

Understand Training Options

Employee Training Options: - • Train internal staff to train (TTT)

• Train internal HR Trainers (TTT)

• Buy-In skilled trainers

Other things to take Account of: -

• Training is a skill

• Trainers are required when

resource demands for testing and

go-live prep are at their highest.

Most partners just offer Train the Trainer (TTT) - WHY ?

• Don’t know who, what, when how much…• Don’t have the skills• Don’t know what the client has• It’s EASY to “pass the buck”• Don’t want to increase the Implementation Cost• Some do believe it’s best

What’s their “official reason”• Say client staff have “process knowledge”• Client's staff – know the people

Two different types of training: - 1. Super users, Project Team – Product

related2. General employees – Specific

Process related

Employee Training Options: - • Train internal staff to train (TTT)

• Train internal HR Trainers (TTT)

• Buy-In skilled trainers

TTT Consultancy Costs

Back-fill Staff

Inefficient Training

Understand TCO of Training

Ineffective Training

Loss of best resources

Unhappy Customers Disillusioned Employees

Catch up Training

Follow up Process Costs (NOT Support)Things to take account of: -

• Training is a skill

• Trainers are required when

resource demands for testing and

go-live prep are at their highest

• How will you avoid Knowledge

Degradation?

Training Materials

“It's unwise to pay too much, but it's also unwise to pay too little. When you pay too much, you lose a little money - that's all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing what it was bought to do.

The common law of business balance.

The common law of business balance prohibits paying a little and getting a lot - it can't be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that you will have enough to pay for something better.”

John Ruskin – Late 19th Century Poet, Writer and Philosopher.

Quality Assurance

www.pwc.com

PwC

PwC Risk Assurance - Our Dynamics Pedigree

• Independent – we do not implement

• We are Microsoft UK’s preferred independent QA partner for Dynamics projects

• Mature team – had Dynamics focus for past 4 years

• We know the market, solutions, and Microsoft better than anyone else

• We are experts in Dynamics project assurance, and rescuing projects in distress

• We can use our technical centres of excellence in India and South Africa for detailed analysis

• We have specific tools on AX for security and process optimisation

• Over-complex solution – 70% of projects had too much customisation

John Rosbotham Director, Project & IT Assurance

PwC

Recent PwC Survey of AX projects (2010-12)

KEY FINDINGS

• 85% of projects failed to meet objectives

• Flawed Project Management (70+%)

• No post go-live monitoring of system use (100%)

• Poor reporting (75%)

• Over focus on system rather than business process, including training (60+%)

• Lack of focus on security and business process controls (75%)

• Over complex solution – 70% of projects had too much customisation

PwC

Risk profile of a Dynamics AX projectWhen things go wrong

Sus

tain

abil

ity

&

App

etit

e

Time

Pre-implementation

Implementation Post-implementation

• Project has to be set up for success early on - Diagnostic phase independent review

• Strong direction needed at time when requirement/process gaps appear

• Benefits of new system are lost after go-live

• Partner focused on license sale

• ‘Valley of despair’ during Analysis

• System use drops away after go-live.

PwC

Project Management – the right mix is key

Supplier Focus

AX Partner project manager

“We need to manage our own position here.”

“We need to reduce cost to manage our risk”

“I’m not managing the project. I’m focused on our tasks and resources”

Is Green the real picture?

Risks reported early with

recommendations

Is Green the real picture?

Independent focus

Experience / Project Assurance

THE BRIDGE

“This is where you should be according to our experience”

“You need to do A, B, C etc now..”

“We report it as it is, against where you should be.”

Client Focus

Client project manager

“Not sure where we are at.”

“I’m relying on the AX partner to be on top of things”

“My aim is to deflect blame to the AX partner. I must protect my position.”

PwC

Cost vs Risk profile of project management

Cost

Project delivery risk

Client PMProject

Assurance

Supplier PM

Key Aspects• Client-side PM is cheapest

resource. Experienced independent will reduce the risk

• Supplier PM focuses on AX partner tasks/risks and therefore has little impact on delivery risk beyond basic duties. Beyond 1-2 days p/w is of little value

• Project Assurance is most expensive but is focused on reducing risk. Used at key points and meetings gets most value out of it.

• Optimum mix is:

Client side PM with experience

Supplier PM part-time

Project Assurance for key meetings and health-checks

PwC

The core models for project governance

Traditional approach

• AX partner takes majority of risk

• AX partner assumes majority PM responsibility

• AX partners do not take client risk

• AX partners are stretched – client gets team B or C

Client PM(part-time)

AX Partner (PM and AX

skills)

Client-Side PM AX partner or

independent AX skills

Assurance partner

Alternative approach -Independent with Assurance

• Client-side PM with ERP/Dynamics experience (reports into client)

• AX skills from best available

• Independent assurance from experienced team

PwC

Process and system compliance - what’s the issue?Post go-live – when the system is not used as designed

SoD

& P

roce

ss C

om

pli

an

ceP

roce

ss E

ffic

ien

cyIn

tern

al

Con

trol

Data

Qu

ali

ty

Time

User Provisioning Passed to Sys Admin Team

Inconsistent Data Input Methods

Process & Control Workarounds / Key Users

Leave

Str

on

gA

vera

ge

Poor

Spreadsheet Proliferation

Monitoring Controls Stop Operating

AX Not Used as Designed

PwC

Process optimisation and controlsWhat we see on every implementation

• Process maps are key but they get stuck in a draw post go-live

• Their value is reduced virtually to nil after go-live

• There is a lack of focus on process controls on implementation

• No mechanism to ensure process control and system utilisation to support designed processes

• Processes become more manual over time and open to lack of control and efficiency

• 70% of perceived benefits are lost after go-live

PwC

Embed process KPIs into your organisationUsing Dynamics AX to control and improve processes

• Design Process KPIs whilst designing your processes – these will measure whether a process is being performed well

• These KPIs are based on data from the Dynamics AX system

• Build an evidence-based ‘controls dashboard’ to help enforce process compliance and control

• Dashboard becomes alert mechanism for management by business area

• The dashboard is a key tool to help embed process change and ‘make the change stick’

PwC

Process KPI DashboardManagement’s tool to monitor process compliance

© 2012 PricewaterhourseCoopers LLP. All rights reserved. In this document, “PwC” refers PwC LLP which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.

Summing up….

Your AX 2012 implementation is not just an IT project – it’s a PEOPLE project. Don’t overlook training development and the need to involve staff early on. Recognise that trainers are often required when resource demands for

system testing and go-live are at their highest. Remember to focus on business processes, not just system processes. Get the Project Management mix right: are all parties aware of each other’s

areas of focus and responsibility? Who is identifying risks early on? Use Assurance Partners to reduce risk and bridge the gap between client

side project management and implementation partners. Embed process KPIs and controls into your AX 2012 implementation to

ensure that the system benefits continue to be realised long after go-live.

@Optimum_UK

Philip Stridepstride@infodatasolutions.co.uk

Joanne Greenjoanne.green@optimum.co.uk

Optimum Technology Transfer Ltd

www.microsoftdynamicstraining.co.uk

John Rosbothamjohn.h.rosbotham@uk.pwc.com