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LEADING THE WAY TO SUCCESSFUL ERP

LEADING THE WAY TO SUCCESSFUL ERP. Bill Turnquist, CFPIM Central Washington University Commencement Bay APICS - February 21, 2001. About the Presenter . Asst. Professor of Business Administration -Central Washington University (24 years)

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LEADING THE WAY TO SUCCESSFUL ERP

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  1. LEADING THE WAY TO SUCCESSFUL ERP Bill Turnquist, CFPIM Central Washington University Commencement Bay APICS - February 21, 2001

  2. About the Presenter • Asst. Professor of Business Administration -Central Washington University (24 years) • MS in Industrial & Management Engineering - Montana State University • APICS certified - CFPIM • Industrial experience as industrial engineer, engineering economist, manufacturing systems analyst • Consultant and trainer

  3. Millennium Reality We are entering (actually in) a world where the old rules no longer apply. -- Philip Sanders, Rising Sun

  4. The New Rules • Local markets  global markets • Market dominance  cutthroat arenas • Technology hoarding  rapid transfer • Producer driven  consumer driven • Mass production  mass customization • Loyal customers  fickle customers Create environments where success, even survival, demands effective response when chaos is encountered

  5. A Changing Environment • Greater speed and less clarity • Still photos  video tapes  fast forward • Less time to absorb change • Not a question of “If?”, but rather “When?” and “How fast?”!! Organizations that fail to change will surely fail

  6. The Faces of Change My Change

  7. The Faces of Change Your Change

  8. The Faces of Change Big Change

  9. The Faces of Change No Change

  10. Keys to Implementation Success • Leadership commitment • Acceptance of change • Education • Technology • Integration • Performance measurement/feedback/ accountability

  11. Leaders Overcome Resistance to Change Rational or Not? • We’ve always done it this way!!!!! • Our place is different • I don’t see the connection • We tried that back in 1957--didn’t work!! • Where’d you dig that one up?!! • That will take two years to test • It’s against company policy • Engineeringwon’t approve it ..........AND ON, AND ON!

  12. System Implementation Issues • New systems involve change • Threat or opportunity? • Areas of change: • Processes, Communication, Cooperation, Education, Attitudes, Data consistency/ availability, Decision making • Commitment to excellence • Data integrity, Data/information based decisions, Process improvement

  13. The Process of Change Success or Failure? Wyatt Work USA study (4300 companies) • 54% of leaders identified employee resistance as major impediment • Hourly workers cited lack of management vision and visibility For effective change, cooperation and communication is required from both sides

  14. What is Leadership? • The ability to influence people toward the attainment of organizational goals • More critical in chaotic, changing times • Make things happen, not wait for them to happen

  15. Leadership Principles • Develop a clear sense of purpose (envision => vision) • Communicate the vision • Build trust • Involve people/empower them to achieve the purpose

  16. Encourage Empathize Direct Inspire Focus Ask Listen Reward Dream Challenge Sympathize Communicate Reinforce Mentor Appreciate Trust Clarify Be Passionate Be Honest Be Human What Great Leaders Do!!

  17. The captain must continue to see (and forge on to) the new world, even when the crew wants to sail home

  18. Now We Complicate Things with the Dreaded --- ERP

  19. Closed-Loop Planning • Highly integrated • Loops and linkages • Data flow and connections • Consistency and alignment Replace inventory and other resources with information!!

  20. The Need for Closed Loop: Tell-tale Signs • Controller - Inventory’s too high!! (Marketing’s fault) • Marketing - Customer service/delivery is terrible!! (Manufacturing’s fault) • Manufacturing - We never have the right parts!! (Materials Management’s fault) • Materials - Shop floor and purchasing never follow the schedule!! (Their fault) • …………and on and on…...

  21. A Matter of Communication

  22. Enterprise Resource Planning (ERP) Systems • A method for the effective planning and control of all resources needed to take, make, ship, and account for customer orders. Differs from typical MRP II in technical requirements such as graphical user interface, relational database, 4GL languages, client-server architecture and open-system portability • Modified from APICS Dictionary - 9th Ed.

  23. ERP - The Impact • ERP involves the effective planning and control of all resources needed to take, make, ship, and account for customer orders • ERP is a closed-loop, integrated planning system involving all functions • ERP success requires participation and useby all

  24. ERP - More Impact • ERP is a “people” system • ERP implementation requires new attitudes, relationships, and commitments to an integrated, interactive process • ERP requires, painfully in some cases, leaving the old, tried and true behind

  25. ERP - Opportunities for Change • Critical evaluation of existing: • Systems • Processes • Policies • Procedures • Identification of improvement opportunities • The fundamental question - what to keep and what to change? • Links/loops/impacts

  26. ERP - The Bottom Line • More complexity • More interfaces • More integration • More change New and different leadership!!!

  27. The New Leadership Paradigm • What we need is not necessarily better leaders, but more of them. The Ideal - Everyone at every level is a self-leader

  28. Your Role • Lead • Follow • Get out of the way!

  29. Leaders Followers An All Too Common Viewpoint

  30. Get Out of the Way!! • The “Not My Job” Syndrome

  31. The Roles of Leaders and Followers Common Threads • Communication • Vision and Clarity • Analysis and Anticipation • Participation and Involvement • Trust • Support and Empathy

  32. Communication JUST DO IT!! - frequent, open, honest, personal • Leaders • Visible and accessible • Ask and listen • Followers • Ask and listen • Don’t complain/be a victim

  33. Vision and Clarity If you don’t know where you’re going, you will wind up somewhere else! -- Yogi Berra • Leaders • Have a vision • Clarify/communicate/reinforce • Followers • Seek to understand • Press for clarity

  34. Analysis and Anticipation Murphy’s Law - Whatever can go wrong…will! • Leaders • Analyze broad impact • Anticipate/solve potential problems • What’s in it for -- me, them, us? (WIIFMTU) • Followers • Be objective • Analyze narrow impact • What’s in it for -- me, them, us?

  35. Participation and Involvement There is no “I” in team!! • Leaders • DEMONSTRATE COMMITMENT -- words and action • Develop “okay-to-fail” culture • Encourage teamwork/empower/enable • Recognize and reward • Be enthusiastic • Followers • Use talents and experience • Experiment • Share successes

  36. Trust Lack of trust is the quickest road to failure • Leaders and followers • Every action is a “moment of truth” - honesty • Establish and sustain • Recover and renew

  37. Support and Empathy Put yourself in someone else’s shoes to see their concerns and reservations • Leaders and followers • Be more aware/understanding of each other • SUSTAIN the effort

  38. The Quick Steps to Success • People First!! • Enthusiasm • Open-mindedness - WIIFMTU • Communication, Communication, Communication • Flexibility • Personal Commitment

  39. Ten Ways to Change YOURSELF and Become a Leader 1. Be a big thinker and create opportunities 2. Be farsighted and look to the future 3. Be creative and think at the edge

  40. Creativity in Action???

  41. Creativity in Action???

  42. Creativity in Action???

  43. Ten Ways to Change YOURSELF and Become a Leader 4. Be ethical, honest, and empathetic 5. Take action and get things done 6. Be flexible and become a change master

  44. Ten Ways to Change YOURSELF and Become a Leader 7. Don’t make or accept excuses 8. Empower others - build commitment and trust 9. Continually improve your skills and above all else …...

  45. Ten Ways to Change YOURSELF and Become a Leader 10. Be enthusiastic and have fun!!!!

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