ERP Organizational Change Metrics

A metric is a “quantitative measure of the degree to which a system, component, or process possesses a given attribute” (The IEEE Standard Glossary of Software Engineering Terminology, 1990). During an ERP organizational change effort, determining both project management metrics as well as pre- and post-go-live operational metrics is a crucial exercise.  ERP organizational change efforts require considerable time determining, documenting, and discussing pre-implementation metrics. Ensuring that post-implementation an organization can adequately account for and measure against these same metrics is a key success factor. But of utmost importance is understanding that metrics can help maintain some objective “proof in the pudding” as to success and continuous improvement. Without good metrics, it is much easier for the “success” or “failure” of a project to become quite subjective. As long as the business metrics and KPIs are appropriate, it can be difficult to debate objective (and agreed upon) data and analysis.

Utilizing Metrics Throughout the ERP Project Lifecycle

We will discuss ERP organizational change metrics in greater depth in upcoming blog posts. Metrics, such as time to close your monthly financials, cycle count results, availability of the ERP system, on-time delivery, and many others can benefit ERP organizational change. Whether in the ERP implementation readiness phase (pre-go-live) or post-go-live, continuous improvement is realized through the management and value that is placed on metrics. ERP organizational change metrics are required during every phase of the project. Understanding existing metrics that need to be included in post-go-live is critical. Pre-implementation metrics also are used to compare to post go-live metrics. This allows the organization to compare pre and post and to determine any possible issues with systems and processes. Metrics also are used post-go-live as a continuous improvement tool. ERP Metrics, and data analytics, can provide an organization with good information about the execution of business processes. The key to understanding what metrics are relevant and useful to the organization and then ensuring that the ERP is able to support those metrics post-go-live.

Creating Discipline and Visibility Through Metrics

ERP systems, and implementation, can be undeniably complex. And, managing an organization’s ERP requires some basic “blocking and tackling”. Metrics also help to create ERP process discipline and awareness. Moreover, metrics help emphasize just how important every single ERP transaction is. Post-implementation, an organization needs to allow appropriate time to evolve and to continue to accelerate past the ERP learning curve; metrics make this progress more visible. ERP organizational change metrics provide visibility and awareness to issues and thus allow an organization to promptly address potential operational issues.

Ensuring Alignment and Success with ERP Metrics

ERP success or failure can be difficult enough to define (and to obtain consensus) because it can be, to a certain degree, quite subjective. Including the discussion, definition, and consensus of ERP organizational change metrics to your ERP project plan can help ensure that the organization is aligned and meeting stated objectives and goals.

Contact Nestell & Associates today to learn more.