10 Cautions when implementing a new IT System
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The document outlines 10 risks associated with system implementation projects. It discusses each risk in detail over several pages. The main risks discussed are: having an unrealistic view of return on investment; lack of organizational preparedness for the change; using less qualified "B team" members instead of top "A team" personnel; denying the impact the change will have; failure to have contingency plans to continue operations during implementation; unexpected technical issues from legacy systems; underestimating the widespread impact across teams; allowing scope creep without discipline; implementing technology before analyzing and redesigning processes; and failure to fully account for all costs of the project. The document emphasizes being honest about risks and having strong planning and change management to avoid issues during large system implementations
10 Cautions when implementing a new IT System
- 1. PRO/Axios 10 System Implementation Risks Dr. Jim Bohn Straightforward guidance for those who do the work … 04/11/13 Organizational Insight leading to Organizational Transformation
- 2. Why am I offering this caution? My operations experience with several major IT projects provided me insight. Many (not all) IT consultants avoid telling you about these risks. Most companies don’t do enough IT implementations to get ‘good’ at it. Few internal IT teams stay together long enough to share learning from the last system implementation. System introductions touch the very DNA of your organization. The risks are VERY HIGH. 04/11/13 Organizational Insight Leading to Organizational Transformation
- 3. Ten System Implementation Risks 1. ROI Blindness 2. Lack of Organizational Preparedness 3. Using the “B” Team when only the “A” team will do 4. Denying the impact of the change 5. Wheels on the bus 6. The Jimmy Hoffa syndrome 7. I get by with a little help from my friends 8. Ado Annie syndrome 9. Doing Technology before process 10. Counting the cost 04/11/13 Organizational Insight Leading to Organizational Transformation
- 4. Ten System Implementation Risks ROI Blindness – Perceived ROI sometimes makes rational people irrational. Rare is the organization that goes back to check the original ROI. Be brutally honest about the true financial and human toll required. Lack of Organizational Preparedness Using the “B” Team when only the “A” team will do Denying the impact of the change Wheels on the bus The Jimmy Hoffa syndrome I get by with a little help from my friends Ado Annie syndrome Doing Technology before process Counting the cost 04/11/13 Organizational Insight Leading to Organizational Transformation
- 5. Ten System Implementation Risks ROI Blindness Lack of Organizational Preparedness – The old gospel song asks “Are you ready?” Have you thought through how this implementation will affect your organization? Do you have the capacity for this change? Using the “B” Team when only the “A” team will do Denying the impact of the change Wheels on the bus The Jimmy Hoffa syndrome I get by with a little help from my friends Ado Annie syndrome Doing Technology before process Counting the cost 04/11/13 Organizational Insight Leading to Organizational Transformation
- 6. Ten System Implementation Risks ROI Blindness Lack of Organizational Preparedness Using the “B” Team when only the “A” team will do - Are you fooling yourself into thinking that those with spare time on their hands are the right people for the job, simply because they are available? Think again. Denying the impact of the change Wheels on the bus The Jimmy Hoffa syndrome I get by with a little help from my friends Ado Annie syndrome Doing Technology before process Counting the cost 04/11/13 Organizational Insight Leading to Organizational Transformation
- 7. Ten System Implementation Risks ROI Blindness Lack of Organizational Preparedness Using the “B” Team when only the “A” team will do Denying the impact of the change - Research shows your organization will not perform at the same level during the introduction of a new system. There are revenue and profit implications. What is your plan? Wheels on the bus The Jimmy Hoffa syndrome I get by with a little help from my friends Ado Annie syndrome Doing Technology before process Counting the cost 04/11/13 Organizational Insight Leading to Organizational Transformation
- 8. Ten System Implementation Risks ROI Blindness Lack of Organizational Preparedness Using the “B” Team when only the “A” team will do Denying the impact of the change Wheels on the bus – Your organization needs to continue to serve customers and care for employees during the change. You are changing a tire on a moving vehicle – what are your contingency plans? The Jimmy Hoffa syndrome I get by with a little help from my friends Ado Annie syndrome Doing Technology before process Counting the cost 04/11/13 Organizational Insight Leading to Organizational Transformation
- 9. Ten System Implementation Risks ROI Blindness Lack of Organizational Preparedness Using the “B” Team when only the “A” team will do Denying the impact of the change Wheels on the bus The Jimmy Hoffa Syndrome – Your system will discover unexpected software patches that must be integrated with the new system, some built in COBOL = $$$$. Uncover those pitfalls early in your due diligence! I get by with a little help from my friends Ado Annie syndrome Doing Technology before process Counting the cost 04/11/13 Organizational Insight Leading to Organizational Transformation
- 10. Ten System Implementation Risks ROI Blindness Lack of Organizational Preparedness Using the “B” Team when only the “A” team will do Denying the impact of the change Wheels on the bus The Jimmy Hoffa syndrome I get by with a little help from my friends – Your implementation is going to impact a LOT of unforeseen individuals and teams. Discover who will be impacted. I can assure you: The impact matters to them! Ado Annie syndrome Doing Technology before process Counting the cost 04/11/13 Organizational Insight Leading to Organizational Transformation
- 11. Ten System Implementation Risks ROI Blindness Lack of Organizational Preparedness Using the “B” Team when only the “A” team will do Denying the impact of the change Wheels on the bus The Jimmy Hoffa syndrome I get by with a little help from my friends Ado Annie Syndrome – Without discipline, projects grow into monstrosities, becoming impossible to implement. Scope happens. Doing Technology before process Counting the cost 04/11/13 Organizational Insight Leading to Organizational Transformation
- 12. Ten System Implementation Risks ROI Blindness Lack of Organizational Preparedness Using the “B” Team when only the “A” team will do Denying the impact of the change Wheels on the bus The Jimmy Hoffa syndrome I get by with a little help from my friends Ado Annie syndrome Rushing to Implement Technology before Analyzing Process – Do not write Technical Design Documents without first having gone through Process Design. Resist this impulse or you’ll automate a bad process. Counting the cost 04/11/13 Organizational Insight Leading to Organizational Transformation
- 13. Ten System Implementation Risks ROI Blindness Lack of Organizational Preparedness Using the “B” Team when only the “A” team will do Denying the impact of the change Wheels on the bus The Jimmy Hoffa syndrome I get by with a little help from my friends Ado Annie syndrome Doing Technology before process Counting the cost – The Biblical adage about ensuring you can finish what you start is wonderful ancient wisdom. Considering the whole cost – people, process, finances, are you determined to complete the project? 04/11/13 Organizational Insight Leading to Organizational Transformation
- 14. 11th Risk – Ignoring the details … Agree on the meaning of terms – make sure there is no ambiguity on what something means. This is especially crucial in global projects. Develop standard definitions of terms. Design consistent revision controls and stick to them. Ensure consistent issue management. Construct common databases for efficiencies. This is painstaking work, but worth the investment of your time. 04/11/13 Organizational Insight Leading to Organizational Transformation
- 15. Pro/Axios We offer plainspoken guidance for those who do the work. Check out the Rapid Diagnostic @ www.ProAxios.com info@proaxios.com 651-302-1574 Minneapolis, MN, USA 04/11/13 Organizational Insight Leading to Organizational Transformation
- 16. Thank you for your time! All management is change management