GOODBYE MICROMANAGEMENT

Goodbye Micromanagement
1
GOODBYE
MICROMANAGEMENT
Ensuring vision fidelity
throughout your SAP project
A Holland Systems whitepaper
Goodbye Micromanagement
SYSTEMIC MYOPIA
2
Our goal is to demonstrate
that today’s most popular
ERP planning method is
a contributing factor to
implementation failures.
If you’re considering a move
to SAP, you know that big
ERP projects have a dismal
reputation. All too often,
these endeavors begin as
a dream of streamlined
business processes and end as
a nightmare of lost revenue,
missed deadlines, cost
overruns, and finger pointing.
A dizzying number of
large-scale IT projects are
started each year, but a study
by Gartner revealed that just
three causes — functionality
issues, quality issues, and
substantially late delivery — are responsible for almost
50% of project failures. Here’s
the puzzle — if we know those
three factors so frequently
cause failure, then why are
they still so frequent?
The answer is that they’re
symptoms of a deeper
problem, and that problem is
a failure of vision. Even when
the master plan is perfect,
the vision behind it can get
lost in translation as it is
communicated down through
an organization.
Our goal is to demonstrate
that today’s most popular
ERP planning method is
not only outdated, but also
a contributing factor to
these failures. It leaves team
members with an unclear
understanding of the project’s
guiding vision, and causes
needless confusion and rework. We’ll describe a new
methodology for planning,
managing, and evaluating your
SAP projects that keeps your
team focused on the high-level
vision.
Functionality,
quality, & late
delivery are
responsible for
50 %
of failures.
Goodbye Micromanagement
THE B MOVIE
3
Sometimes you get exactly
what you asked for— not
what you wanted.
If you’ve been a part of ERP
implementations before, you
know that they’re typically
planned and written in a
WBS format. The WBS format
breaks a project down into
a hierarchy of tasks and
deliverables, from the general
down to the specific.
If the executive responsible
gets everything he wants
worked into the plan, he
should see his vision realized
at the end of the project.
So why, after such careful
planning, is the project still
vulnerable to breakdowns?
The answer lies in the
realities of delegation. The
executive cannot make every
decision in the project himself.
He doesn’t have the time or
the technical expertise to do
so, so he must rely on his team
for execution. The problem
with the WBS format, however,
is that it lacks a clear way of
putting individual tasks into a
larger context. As instructions
filter down through the
organization, the original
vision can easily get distorted
or lost.
If that doesn’t seem like
a big deal, imagine a movie
director who sets out to
make a dark, gritty Batman
sequel — but doesn’t make
that vision clear to his team.
Instead, he uses a WBS-style
approach and starts delegating
tasks. He tells them that he
wants an all-star cast, an
iconic CGI monster, physicsdefying vehicles, and an
award-winning soundtrack.
He ends up with Steve Carell
as Batman, Betty White as
Catwoman, and a climactic
scene in which the pair
chases Shrek through the
streets of Gotham in Fred
Flintstone’s car — all set to a
Broadway score.
The director’s team
followed his instructions
perfectly, but because only he
understood the vision, he got
what he asked for — not what
he wanted.
This example may
sound fatuous, but the WBS
format leaves its creators
vulnerable to the same sort
of breakdowns, because it
doesn’t have an organized
way of spelling out the value
that each task is supposed to
deliver.
Goodbye Micromanagement
THE WBS MODEL
4
The WBS format is
designed to convey a series
of requirements, organized
as components of larger
requirements. The ‘what’ is
clear, but the ‘why’ is hard to
decipher.
The thinking behind
each task is rarely
provided — and if so, only
as part of the requirement’s
description. But perhaps
even more concerning
is the lack of defined
hierarchy. Each action
item sits untethered to
the overarching vision, its
relationship to the larger
picture unclear.
Project Launch
1
WBS #
Item Title
Operation
Q-Gate Deliverable
Work Stream
1.1
Prepare Team
Onboarding Document
Prepare the onboarding package for
external consultants from SAP and
partner companies.
1.2
Project Governance
Ensure that an efficient management
framework is in place for successful
project execution.
1.2.1
Define Project
Organization
The purpose of this task is to define the
organizational structure, roles, and
responsibilities of the project team.
Steering Committee
Definition, Roles
PM
1.2.2
Communication
Management Plan
Complete the communications
management plan. Outline the
processes required to ensure
distribution, storage, and retrieval of
project information.
Communication Plan
PM
Project Guideline
PM
PM
Project Charter
2
WBS #
Item Title
Description
Q-Gate Deliverable
Work Stream
2.1
Prepare Project Charter
Document
Collect all input required for the project Project Charter
charter and document it. Format
suitable for both communication and
sign-off.
PM
2.2
Identify Stakeholders
Ensure that the correct groupings of
stakeholders have been identified for
the project.
Organizational
Change/PM
2.3
Obtain Project Charter
Sign-off
Achieve a formal sign-off of the project
charter.
PM
2.4
Kick-Off Workshop
Kick-off the project/phase and ensure
that all needed information is shared
with the resources.
Phase Kick-Off
Meeting
PM
Goodbye Micromanagement
MAKING THE SHIFT
5
Instead of merely listing
requirements, consider a
value-cognitive approach
to project planning.
All executives communicate
their vision at kickoff. But
when their team is down in
the weeds, it’s easily lost—
especially if it’s not baked into
how the plan is documented.
The visionaries are playing a
high-stakes guessing game,
describing their goal as a
series of actions and hoping
their team can figure out what
they want.
For example, when setting
up a new SAP system, many
visionaries want to standardize
their business practices
across the organization and
request that all units use
“out of the box” software, but
soon discover that a large
number of customized objects
have slipped into the project
scope. This happens because
low-level managers have
competing requirements to
juggle. They’re accountable
for making sure their unit
transitions smoothly from the
old system to the new one,
and it’s tempting to request
customization so they don’t
have to learn a whole new
set of practices. The vision
is lost when they prioritize
requirements rather than the
values behind them.
Projects managed by the
traditional method can and
do succeed, but they require
a significant degree of
micromanaging. The purpose
of creating a plan in the first
place is so that everyone
can do their part without
constantly having to go to the
visionary for guidance. Instead
of describing the vision as a
collection of requirements, and
hoping those requirements are
correctly interpreted, wouldn’t
it be great if plans could have
that vision built in?
As it turns out, they can.
Instead of merely listing
action items, consider a valuecognitive approach to project
planning. A value-cognitive
plan includes most of the
same information that a WBS
plan contains, but tasks are
organized into a hierarchy
according to how they
contribute to the overall vision,
and this thinking is spelled out
explicitly at every level.
Goodbye Micromanagement
THE VALUE-COGNITIVE MODEL
6
You’ll notice a few things
are different in the valuecognitive model.
First, the rationale
behind a particular task isn’t
hidden somewhere in the
description — it’s the first
thing you see, and it’s in the
same place for every task.
Second, the hierarchy is
clearly laid out. A reader can
see at a glance how each
element relates to the bigger
picture — creating value, and
supporting the vision — so
it’s easy to understand
what to prioritize when
interpreting instructions.
Third, the value-cognitive
model offers a flexible
system for communicating
business requirements. Each
requirement can map to one
or more operations, creating
an additional layer of insight
for team members as they
navigate tough decisions.
Value Defined
Value Planned
Value Executed
Value Ensured
Operation
Consolidate vendors to
improve pricing and
demand faster turnaround
Rationale
We have too many vendors
in our supply chain, and
can’t enforce standards
Strategy
Address supply chain
deficiencies
Rationale
We’ve lost business to our
competition because we
can’t fulfill orders
Operation
Simplify our lengthy
workflow process for
procurement
Rationale
Our internal procurement
process is time consuming
and prone to errors
Vision
Increase market share by
15% over a five-year period
Rationale
Increasing market share
will generate capital to
form a new business
division
Operation
Strategy
Improve accuracy of our
sales data
Rationale
CRM processes are failing
because the master data is
inaccurate, preventing us
from opening new accounts
Centralize our master data
management across the
enterprise
Rationale
Duplicate data is causing
our reports to generate
inaccurate numbers
Business Requirement
Must support a data model
of both ERP and non-ERP
systems
Rationale
Existing business systems is
a hybrid of ERP and non-ERP
systems.
Business Requirement
Integration to business
systems must be near-real
time
Rationale
Sales teams have lost prospects
because of inability to convert a
prospect into a customer rapidly
Goodbye Micromanagement
7
Testing
Enhancements
Project Mgmt
Configuration
Yesterday
Solution
Mgmt
Program &
Change Mgmt
Today
Value Mgmt
Business
Process Mgmt
Using the new
ASAP framework
SAP’s new methodology,
ASAP 8, offers a new way of
running projects. Instead
of tracking technical
deliverables, we now look
at business processes
holistically, and what value
they bring to the table.
Value-cognitive planning
offers a number of benefits.
First, it reduces uncertainty
by explaining the purpose of
every requirement. Second,
it streamlines decision
making. For instance, if a team
member is choosing between a
customized solution with more
functionality or an off-the-shelf
solution that will plug right in,
he can check the plan to see
which one is more in line with
the project’s underlying goals.
ASAP 8 recommends valuebased deliverables instead
of technical deliverables, so
value-cognitive planning is
philosophically consistent with
ASAP 8, and maps smoothly
onto SAP’s recommended
implementation strategy.
Finally, it’s a useful tool as
part of a larger organizational
strategy to empower your
team members to act if
they see a better way of
contributing to the vision, or
if circumstances change. With
a clear understanding of the
overall picture, they can adapt
and respond intelligently.
By organizing a clear
hierarchy and making it
integral to the plan, valuecognitive planning gives a
clear understanding of the
rationale for every task — and
it does so without changing
the way you use any of your
existing planning tools. It
empowers your team to make
vision-based decisions in
your absence, and makes
everyone accountable for
delivering what’s needed, not
just what was asked for. In
both cases, a subtle change
in focus produces a dramatic
improvement in results.
Goodbye Micromanagement
8
It’s important to note that
value-cognitive planning
is more than just a
philosophy. It’s a strategy
that can be dovetailed
with your existing suite
of tools. Whether you use
Microsoft® SharePoint®,
spreadsheets, or another
system altogether, you can
apply this approach to flesh
out your plan into a living,
tangible asset—one that
ferries your vision to final
success, not a string of dead
ends.
Supply Chain
Reform
1
Vision
Increase market share by
15% over a five-year period
Strategy
Address supply chain
deficiencies
WBS #
1.1
Rationale
Increasing market share will generate capital to
form a new business division
Item Title
Allocate Resources
Rationale
We’ve lost business to our
competition because we
can’t fulfill orders
1.2
Prepare Team
Onboarding Document
Operation
Business Requirement
Consolidate vendors to
improve pricing and
demand faster turnaround
Technology must support
automated consolidation,
based on business rules
Rationale
We have too many vendors
in our supply chain, and
can’t enforce standards
Rationale
With millions of records, we
don't have the man-power
to analyze records by hand
Simplify our lengthy
workflow process for
procurement
Q-Gate Deliverable
Work Stream
Project Guideline
PM
Project Guideline
PM
Q-Gate Deliverable
Work Stream
Project Guideline
PM
Rationale
Our internal procurement
process is time consuming
and prone to errors
2
Strategy
Improve accuracy of our
sales data
Rationale
CRM processes are failing
because the master data is
inaccurate, preventing us
from opening new accounts
WBS #
2.1
Item Title
Define Project
Organization
Operation
Business Requirement
Centralize our master data
management across the
enterprise
Must support a data model
of both ERP and non-ERP
systems
Rationale
Duplicate data is causing
our reports to generate
inaccurate numbers
Rationale
Existing business systems is
a hybrid of ERP and non-ERP
systems
Integration to business
systems must be near-real
time
Rationale
Sales teams have lost prospects
because of inability to convert a
prospect into a customer rapidly
Goodbye Micromanagement
WRITING IT DOWN
9
When writing a value,
keep in mind that their
purpose is to empower
team members to make the
decision you would make if
you were in their place.
In general, it’s better
to define each element as
broadly as possible, because
it gives your team more
freedom to pick the solution
that best advances the
vision. “I want to be focused
and alert when I get to
work” opens up a lot more
options than “Make coffee
by 6:45 am.” That said, don’t
be afraid to be very specific
if that’s what the vision
requires.
Value Defined
Vision
Value Planned
Strategy
Value Executed
Operation 1.1
Value Ensured
Business Requirement
I want to be focused and
alert when I get to work
Standardize sleep
regimen
Set a reminder alarm to
get ready for bed at 11pm
Read book before bed
Rationale
Being alert will increase
productivity and
decrease stress
Rationale
My circadian rhythm is
out of balance making
restful sleep difficult
Rationale
I tend to stay up reading
for too long
Rationale
Reading is more relaxing
than watching TV
Strategy
Use caffeine to boost
alertness...
Operation 1.2
Business Requirement
Make lunches the night
before
Make lunch for kids
Rationale
An extra .5 hours of
morning sleep can be
gained
Rationale
School cafeteria food is
expensive and low in
nutrition
Goodbye Micromanagement
ORGANIZATIONAL IMPACT
10
We’ve outlined the benefits
inherent to value-cognitive
planning. By clarifying the
rationale for each task, it helps
the team accurately deliver
results that are consistent with
the overall vision.
It also streamlines decision
making by organizing these
elements into a hierarchy,
so it’s clear how to prioritize
alternative courses of action.
But value-cognitive
planning offers other
advantages as well. An
implementation partner who
can skillfully execute a valuecognitive plan can eliminate
needless re-work and delays
by building deliverables that
fit the guiding vision on the
first try. With their specific
technical experience, they can
propose alternative solutions
that may deliver better results
than the method outlined
within the plan. Most of all,
they can smoothly adjust to
changing circumstances by
keeping the overall vision in
mind, and adjusting methods
accordingly.
Unfortunately, not every
implementation partner is
optimized for a value-cognitive
approach. Most consultants
are honest, hard-working
people, but as long as they are
providing their deliverables,
they get paid whether the
overall project succeeds or not.
Consultants prefer projects
planned in the traditional
format because it generates a
straightforward list of tasks to
fulfill. But as we’ve previously
demonstrated, this approach
leaves the project vulnerable
to many preventable errors.
Changing your planning
format can be daunting,
particularly when it requires a
bit more legwork at the outset.
However, the simple act of
defining and organizing your
vision will bring immediate,
tangible benefits. Your
implementation team will
have a clear understanding
of the bigger picture, they’ll
be able to make the correct
calls without having to consult
you directly, and they’ll be
empowered to capitalize
on available opportunities
and respond intelligently to
unexpected challenges. Use
value-cognitive planning to
define your vision, and watch
that vision become a reality.
Goodbye Micromanagement
11
Here is a list of questions
How do you align the executive vision with detailed deliverables in your project plan?
you can ask prospective
partners to help determine
How can you ensure that your proposed SAP roadmap is in line with the vision statement?
if they are able to execute
value-cognitive plans.
What are the key elements to executing change management during an SAP implementation?
If adjustments to the project plan and/or scope are necessary, how is this managed to ensure quick but
accurate changes?
How do you identify problems with the project execution?
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