Managing An ERP Systems Project: One University’s Success Story

Mary Nell DonohoAssociate Vice Chancellor, Information

TechnologyUniversity of Arkansas for Medical Sciences

donohomaryn@uams.edu

Copyright Information Copyright Mary Nell Donoho, 2002. 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 statement 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.

Tell Me What Implementing an ERP is Like?

What the Consultants Say…

What the Consultants Know…

Turf WarTurf War

DenialDenial

DoubtDoubtRealizationRealization

BurnoutBurnout

SacrificeSacrifice

RevisionRevisionDisputeDispute

DepartureDeparture

DeviationDeviation

DisillusionDisillusion

The Trough of Disillusionment It’s too hard to use… It doesn’t do what I need… The data is wrong… Everyone can see my data… Why do I have to… When can we implement “X”… I told you so…

Project Manager

Leaps tall buildings effortlessly Catches bullets mid-air Stops speeding locomotives Has nerves of steel Has a backbone of steel Possesses the “Can-Do” spirit Is a Master of Compromise Fixes cuts, scrapes and bruises with a smile

Users: It Can’t Be Done! Too little money Too few people Too little time Too many other priorities Too much resistance Yada, Yada, Yada! Yes, it can!!! And, we proved it!

University of Arkansas for Medical Sciences

Mission: Education, Research and Healthcare Delivery

Location and Service Area Size and Diversity Cultural Background

Project Mercury

Project Mercury was a strategic business initiative to replace financial and administrative systems at UAMS. 

The selected software is SAP. 

Our implementation partner was Plaut Consulting.

What Did We Implement? SAP R/3 version 4.6b Modules

Accounts Payable Accounts Receivable General LedgerFunds Management Controlling Project SystemsTravel Management Payroll Assets ManagementPersonnel Administration Time & Leave Management Training & EventsRecruitment Organization Management BenefitsProcurement Invoice Verification Inventory Management

Major InterfacesHBOC Patient Billing HBOC Decision SupportKronos AASIS

Project Mercury’s Charge

Replace all legacy information systems

Reengineer all business processes

Distribute access to data and systems

campus wide

Achieve system maintenance economy

Keep it simple!

Project Mercury’s Challenges Design systems/processes by campus wide

consensus Wholesale redesign of chart of accounts Implement 18 major pieces of functionality Dedicated full-time project team of only 25

including no business experts No backfill of positions No paid overtime 11 months to implement it all $8.5 million project budget funded by

program budget assessments

What Was the Outcome? All in-scope functionality was implemented

big bang without significant business interruption

The project was completed on time and under budget

The project team had a 95%+ retention rate Provided 9,083 hours of hands on training to

905 students in 3 months Deployed 1,100 licenses in 7 locations

throughout Arkansas

We must have done something right?!!!?

How Did We Do It? Understood our mission and held tightly to it Aggressively managed scope creep Emphasized the need for communications

and cultural change Developed a solid plan and managed it tightly Built an understanding of project importance

and a sense of team Assigned responsibilities and held people

accountable Looked for and found creative solutions

Manage To Achieve Your Mission

During product and partner selection

During work planning

During implementation

During go live

During planning for subsequent

phases

Project Mercury Organization

R F P C om m itteeE va lu a tion C o m m itteeS ite V isit T e am

S e le ctio n Te a m s

P o licy T a sk F o rcesD o cum e nta tion T ea m s

C o re T e am

F in a n c ia lH u m anR e so u rcesM a te ria lsT e ch n ica l

B lu e prin tingT e a m s

F in a n c ia lH u m anR e so u rcesM a te ria lsT e ch n ica l

C o n fig u ra tionT e a m s

F in a n c ia lH u m anR e so u rcesM a te ria lsT e ch n ica l

Im p le m e n ta tionP a rtn er

P ro je ct M an a g er

S te erin g C o m m ittee

E xe cu tive S p on sor

Manage Scope Creep

Be thorough in defining initial

scope

Define and use a strong scope

change process

Management support is critical

Manage Communications

Develop a policy Develop a protocol Develop appropriate forums Manage the message Timing is everything You can’t communicate too much

Project Mercury’s Communications Plan

O perational Issues

O rganizational Issues

Line Managem ent

Divisional Managem ent

Steering Com m ittee

Policy Issues

Scope/Budget Issues

Im pact Assessments

Planning Options

Strategic Groups

Cam pus M anagem ent

Project Sponsor

M anagem entCom m unications

Progress Updates

W eb Page

Public Announcem ents

Forum s

Reports

Planning Messages

Brochures

Project Activities

New sletters

Topic Specific

Sponsor Letters

Publications

Process Design

Preview s

System Usage

Process Managem ent

Training

Events

Business Risk Issues

Cultural Issues

G eneral Population

Constituency G roups

Change Agent Netw ork

Change Mgm t. Team

Change M anagem entCom m unications

Project Team

Communication Type Delivery Path Message Content

Manage for Culture Change Change the “I’m okay, you’re not!”

mindset Provide compelling reasons for change Personalize the business case Identify and utilize change facilitators Make process the focal point Make change personally rewarding

Manage The Plan Select your toolkit carefully Optimize tool usage Communicate the plan Minimize revisions Make follow-up an obsession Take no prisoners!

Project Mercury’s Project Plan Project Preparation 5 weeks

Plan Development Project Charter Team Formation

Business Blueprint 16 weeks Process Definition Organization Structure Definition Team Training Change Management Assessment

Realization 24 weeks Software Configuration Testing Change Management Delivery Data Clean Up

Final Preparation 7 weeks Conversion Finalization & Testing Integration Testing Continues End User Training Cut Over

52 weeks

Manage The Team Choose members wisely Elevate the mission Articulate the vision Share the spotlight Build a “war room” Create partnerships Recognize and encourage team play Provide growth opportunities

Manage The Assignments Balance work assignments Document work assignments Provide incentives to succeed Delegate appropriate authority Recognize contributions Support where necessary Monitor! Monitor! Monitor!

Manage Using Creative Solutions

Identify non-traditional resources

Find the hidden talent

Leverage current investments

All work and no play…..

Liabilities can become assets

Keys To Our Success Senior management support Proactive operational management Sense of urgency to succeed The right partnerships Adequate focus on the human

element Understanding it is a business

initiative, not just another IT project

Lessons Learned Treat the project as a business

initiative Commit the required human resources Manage expectations diligently Respect the integration impact Dirty legacy data will kill you Test, test, test…then test some more

Questions

Visit our website at www.uams.edu/mercury