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Implementing Project Management Processes for ERP Systems Mark Roman Ontario University Computing Conference May 17, 2004 Background June 2002 – Banner implementation at Carleton was facing challenges – Primarily project management issues • Audit • Internal • External Strong technical and functional team members – Subject matter expertise – Strong will to succeed – Care about the institution User Scale Student: – 450 administrative users and faculty advisors – 23,500 web users Finance: – 50 core users – 200 budget system users – 1,000 web reporting users Alumni – 30 users Human resources – 25 users Overall: – 555 core users – 23,500 external web users – 1,000 internal web users Data Scale Student – Approximately 15 million records – 370,000 students Alumni – 90,000 alumni Finance – 1.4 million transactions – 25,000 cheques per year HR – 4,000 employee payroll processed semi-monthly Observations Success necessary because – Cannot afford costs of unsuccessful or ineffective implementation – ERP system needed to enable better management & control – Current technology architecture no longer supported Project Management Processes Installed Implemented from July 2002 New Project Management Processes Cost Management Transition Planning Reporting Strategy Dedicated Resource Program Technology Readiness Assessment Integrated Project Schedule Data Access Protocol Changed Organization Structure New Communication Strategy New Project Management Process Go Live Planning Re-Vamped Steering Committee Project Status Reporting Banner Information Center Vendor Relationships Weekly Management Review Risk Management Process Production Systems Review Culture Shift Cost Management Financial review – No prior expense review – Reviewed all actuals to determine real project cost Restructured budget into meaningful, functional accounts – Made budget easy to read/understand Built summary report of all actuals – By cost types: total per vendor, salaries, consulting, etc. – By sub-modules: Student, Finance, HR, Alumni, Infrastructure Developed forecast – Completed to end of project – Built operational budget for post go-live Regular reporting – Report monthly on actuals against budget and forecast – Review financial data monthly to identify variances and act if necessary Integrated Project Schedule Changes – Schedule (Gantt chart) developed for each module (Student, Finance, HR, Alumni, Enterprise) – All modules put into an integrated plan – Schedule review sessions with project manager for each module to update progress and date changes every 2 weeks – Not interested in tracking history Results – Critical path issues identified – Resource allocation problems determined – Radar screen for potential problems – Translates into a PowerPoint Gantt chart for presentation to steering committee Student HR Alumni Finance Enterprise Dec’03 Nov’03 Oct’03 Sep’03 Aug’03 Jul’03 Jun’03 May’03 Apr’03 Mar’03 Feb’03 Jan’03 Dec’02 Nov’02 Oct’02 Sep’02 Aug’02 Jul’02 Jun’02 Sample Steering Committee Summary Feb. 24 Sample Steering Committee Student Detail Infrastructure OUAC HSA EMAS Letter generation Transfer artic. DARS Interfaces e-Visions ESIS/UAR UGAFA Dec’03 Nov’03 Oct’03 Sep’03 Aug’03 Jul’03 Jun’03 May’03 Apr’03 Mar’03 Feb’03 Jan’03 Dec’02 Nov’02 Oct’02 Sep’02 Aug’02 Jul’02 Jun’02 Feb. 24 Changed Project Organization Issues – Needed to match functional project management with technical project management – Technical and functional had to be considered part of the same team – Needed greater role definition for project management Results – De-silo functional and technical teams – Tear down the invisible managerial walls – Removed barriers across sub-projects and with partners Project Reporting Structure Finance Student Human Resources Alumni Functional Project Team Technical Project Team Functional Project Team Technical Project Team Functional Project Team Technical Project Team Alumni Support Team Manager, Student Functional Manager, Student Technical Manager, Finance Functional Manager, Finance Technical Manager, HR Functional Manager, HR Technical Manager, Alumni Support Banner Project Management Team Project Admin. Project Director Banner Steering Committee Banner Information Center Single database for all status reports and issues All managers enter status reports here each week and update issue log Simple interface to an Access database Enables access to any status report written by any manager throughout the life of the project Shared access for anyone who needs access and any stakeholder Project Status Reporting Weekly status of all modules formally documented – Written reporting from each project manager – Edited into weekly summary report and distributed to every stakeholder – Simple focus on progress, issues, and next steps – Encourage realistic reporting • Truth trumps success – Bullet list for quick scanning Results – Awareness creates greater confidence in project – No surprises – No secrets Weekly Management Review Project managers review accomplishments, issues, and plans Forum for: – Discussing cross-module issues – Creates shared awareness of status of all project activity – Opportunity to question anything – Debate on approach to any project activities Identify issues requiring escalation to steering committee – Policy – Funding – Diplomatic support Risk Management Process Formal risk analysis using the PMI (Project Management Institute) guidelines Helped us prepare for the unexpected and expected Forced us to think about future risk scenarios, so it also worked as a project planning tool Risk Management Process Perform risk assessment 1 - Risk management plan developed 2 - Risk assessment team assembled 3 - Risk generation process executed 4 - Risk list rationalized 5 - Risks ranked and prioritized 6 - Response plans written 7 - Risk review process established and running monthly Institutionalize ongoing risk assessment – Ongoing risk reviews – Execution of risk response plans if necessary Write Plan Assemble Team Generate Risks Rationalize List Rank Risks Write Responses Monitor & Control Risk Management Process Step 5 - Ranked Risks – Rationalized list distributed to risk team for review – Voting by: • Impact of the potential loss Degree of impact Financial estimate Low Medium High Very High Less than $250,000 $250,000 to $1,000,000 $1,000,000 to $3,000,000 $3,000,000 and over Numerical value 1 5 16 32 • Probability of occurrence Degree of probability Low Medium High Very High Probability estimate 1– 25% (unlikely) 26–50% (possible) 51–75% (more likely than not) 75-100% (quite probable) Numerical value 1 2 3 4 Risk Management: “A” Risk List (Fall 2002) # Description Impact Probabilty Score Grade 1 Synchronization of HR and Finance may put payroll at risk. 26.7 2.0 53.4 A 2 Fully developed plans do not exist for post-GoLive management of Banner. 15.9 3.3 52.1 A 3 Formal disaster recovery or continuity plans do not exist for the business or IT components of Banner. 24.3 2.1 52.0 A 4 We may not be able to maintain and sustain the right people in right places on the project. 16.0 3.1 50.3 A 5 The university is not ready to socialize Banner into its culture. 10.6 2.9 30.7 A 6 Security may be breached. 10.9 1.7 18.6 A Risk Management Process Response Plans – Response plans written for each of the risks: • Name • Description • Initiation – Triggers – Symptoms • Options – Avoidance – Transference – Mitigation – Acceptance • Action plan • Secondary risks Production systems review Alumni review initiated – Alumni went live with 1/3 of software – Review options to implement the rest of the software – Stakeholders awareness Attitude shift Positive, buoyant culture introduced Can-do, non-adversarial Go Live Morale Reality sets in Kickoff Recognize progress Trough of Disillusionment Time Vendor Relationships Paid bills due – Support services from affected vendors returned to acceptable levels Focused on developing personal relationships with vendors where possible With approximately 10 different vendors, maintaining positive relations was challenging but critical Re-Vamped Steering Committee Focus on: – Sharing information (“Open the kimono”) – Education of issues (before resolving issues) – Mutuality-of-interest problem solving Full disclosure of project status – The good, the bad, and the scary – If something goes wrong: • What happened • How did it happen • What is the impact • What action are we taking to fix it • When will it be fixed Decision making body – Enterprise-wide policy – Escalated issues – Voting Re-Vamped Steering Committee ERP Project Management Meeting ERP Steering Committee Meeting Purpose: Purpose: • To review progress, address issues, and take corrective action Issue requests & status updates • To resolve strategic issues and monitor project success measures Frequency: Frequency: Attendees: Attendees: • Every week • Project managers • Project director (chair) • Every two weeks Issue resolution & direction • • • • • • • • • • VP Finance & Admin VP Academic Dean of Students Dean of Grad Studies AVP Enrollment AVP Alumni CIO Director HR Director Finance Project director (chair) New Communications Strategy Consistent key messaging: – Going live is not the end of the project, it is just the end of the beginning – The “show me” year - demonstrate, don’t speculate – Match expectations with reality – No “rah-rah” messages – Mandate to replace legacy system, not improve upon it – Going live means a non-ERP team member has entered permanent data into the system ERP Data Access Protocol Background – External systems accessed legacy data through the back door – Same external groups wanted to continue this practice with ERP Purpose of protocol – Formalize process for facilitating data access through the front door – To maintain the project’s schedule and budget (and manage scope changes) the external projects were asked to follow this protocol – Scope control – Data propagation restraint Principles – Use central database instead of “edge” systems whenever possible – Avoid duplicate functionality – Need a standard approach to respond to external systems – Data will be supplied if business case warrants – New ERP changes will supercede any “edge” system ERP Data Access Protocol Results – 6 groups demanded data access to ERP to replace unapproved legacy screen scraping and/or report scraping data acquisition systems – All were told yes, on the condition they complied with the data access protocol – Only one made it to the steering committee and none were moved to production Technology Readiness Assessment To prepare for every go-live – Initiated evaluation for performance and capacity evaluation of infrastructure – Evaluate demand and usage profile of key events like registration Performance Upgrades Develop & Test Database Server SAN 1 X Sun 3800 Workload offload & failover 50% increase 6 CPU @ 750 Mhz/CPU Developers 50 Users Application Server All year round 1 X Dell 8500 8 CPU Administrators 555 Users Production Database Server All year round 1 X Sun 3800 8 CPU @ 1Ghz/CPU 186% increase 800% increase Web Server (Carleton Central) Students 4 X Sun Netra 8,000 Users/Summer 23,500 Users/Fall Dedicated Technical Resource Program Introduced dedicated technical resources to specific functional problems Successful with degree auditing and graduate eligibility sub-projects Creates focus, limits flexibility Challenge was to limit legacy support work Reporting Strategy Number of Users Oracle Production reporting Standardised, repeated reports Access Quick development of ad hoc queries Low volume of data Impromptu “what if” decision support modeling High-end data manipulation Reports needing high presentation flexibility eVisions Customize Banner reports Specialised external, formal reports PowerPlay Executive dashboard tool good for analytical work Not useful for day-to-day reporting PL/SQL Efficiency of processing needed Complex queries Complexity of Report Transition Planning Planning for staff transition back to functional departments Who goes where and when do they go there? Get the functional folks out of project mode and back into the operational bloodstream of the university Best way to make the system work is to get the people who really know it re-established in their functional areas Resist temptation to make project structure permanent Most effective way to socialize the system into the organization Go-Live Preparation Identify what technical processes and infrastructure preparation must be done to enable the ERP go-live Integration testing – Plan integration testing using all functional modules – Implement database instance for integration testing – Include all vendor modules Move to production checklist – What are all the steps needed to move each module into production? • Pre-planning • Legacy checklist • ERP checklist • Help desk checklist • Support checklist • Contingency plan • Implementation checklist Go-Live Preparation Support readiness – Help desk process – Tri-level workflow model Production operations readiness – Coverage during standard and non-standard hours – Ensure sufficient operations depth Infrastructure readiness – Performance demands – Capacity evaluation – Upgrade where necessary Implementation schedule – Timeline for production usage of each functional module going live Go-Live Preparation Contingency planning – Performance and capacity failures in infrastructure – Inability to move to production at right time – Production disaster recovery Communication – Ongoing documentation and communicating of implementation actions and their rationale Consulting support – Create insurance policy by requesting on-site support from all vendors Project Go Live Experiences Project Benefit Zone Productivity Productivity Baseline Project Shock Zone Go Live Date Time Project Portfolio Planning Post go-live planning process Project Planning – Overview of Process Primary ERP go-lives complete Need to plan next steps for all production modules Separate planning sessions held with each live functional area Purpose: identify “all the other work we have to do” (not “Phase 2”) Needed to capture workload – What are ongoing support requirements? – What projects are outstanding? Project Planning – Results of Planning Sessions Project Portfolio document developed – Ongoing maintenance and support requirements – Three types of projects identified • Current • Projects already in progress • Most started before May go-live • Expected • Projects previously identified, but not started • Debate: were these part of original project scope • New • New project ideas – ERP linkages • Some projects closely tied to ERP • Others only loosely related Project Planning – Results of Planning Sessions Over 130 projects identified – Each project profiled by: • Name • Owner • Brief description • Start/finish dates • Priority (low/medium/high) • Size (small/medium/large) • Risk (low/medium/high) • Benefits – Value • Basic information to begin project planning process • Enough data to: – Uniquely identify each project – Categorize each project – Preliminary ranking of projects • Not enough to information to approve/reject • Emerging workload demand profile Project Planning – Risk/Priorities For each class of project (current, expected, new): Plot risk and priority to begin sorting process High priority / Low risk first prize Low priority / high risk cancel Risk Low Medium High High Priority Medium Low Athletic eRegistration Decommission of CP6 Internal Summary Reporting Automate Portfolio Requirements Class Scheduling Disk Storage Space on “W” Drives Interface Purchase Requisitions from Maximo Electronic Gradebook Interface Library and Accounts Receivable Interface Campus Card with OC Transpo Fixed Assets and Capital Budgeting Investment Management Remote Cheque Requisition OUAC Upgrades Accept Payment for Tuition over the Web Automated Average Calculation for 105 Applicants Direct Deposit for Student Refunds Enhancing Student Service over the Web Transfer Articulation in DARS Automated Equivalency and Load into DARS Document Imaging for FAST Reporting Direct Deposit for Travel Expenses Document Finance Processes Remote Access eCommerce (e.g. application fees) Remote PO Requisitions Intranet for Banner Finance andFinance Test Environment for Millennium Registration Enhancements Electronically Import OSAP Data Automated Travel Expense Claims Admissions through Web and eCommerce Receiving EDI Transcripts Document Management + Imaging Workflow Offline Database & Query Facility Banner Parking Management Archiving Solutions Connect Single Sign-on User Friendly JV Form Force Password Change System to Support Paul Menton Centre Benchmark Other Institutions Link Web Audit to Course Calendar & Registration Banner Web for Alumni Research & Implement Project Planning – Challenges Need a process to evaluate & manage projects throughout their life – Where to allocate resources – Schedule projects and dependencies – Evolutionary – Experience will morph the process, but need a starting point – Role of steering committee – Process should transcend ERP – Workload estimation Why do we need this process? – Cost control – Evolution of project management processes established – Ownership distinction: the steering committee owns the project – Functional separation of controls Project Life Cycle Initiation Planning Execution Closure Asset Maintenance Revisions Project Flow Needs Develop Project Charter Plan Project Implement Plan Shutdown Project Document Document Progress Final Product Maintain Asset Support Work Approval Steering Committee Role Review Charter Not Needed Reject Control Mechanisms Portfolio assessment • Priorities • Risk • Strategic fit Approval Review Plan Not Sufficient Reject Approval Monitor Status Not Successful Cancel Status reporting Fiscal budget Risk plan Scope Resource plan Schedule Quality plan Communication plan Vendor management Review Deliverable s Not Accepted Continue Execution Accepted Benefit Realization New Project Work Initiate Next Phase Base budget Support resources Benefit measures Issue log Change control Project Planning – Project Charter Project charter required for any project not yet started Purpose of project charter – Business case to justify the project – Document project parameters – Guide project development – Acquire formal authorization to proceed to the next step in the project – Authorize the use of resources to develop detailed project plan – Sufficient information to help the steering committee make their decision Generally brief: 2 to 3 pages Project Planning – Project Evaluation Criteria Two project hurdles: – Does the project meet any of the institution’s strategic goals? – If yes, how well does it meet those goals? Project Evaluation Criteria 9/22/2003 Generic model Banner Steering Committee Support for Teaching and Learning Strategy: Strengthen teaching & learning support Grow EDC: orientation and instruction in pedagogy Improve Library: access to info and resources Reward achievement in instruction, pedagogical research Emphasize teaching achievements for tenure/ promos Criteria Grad Studies Expenses Strategy: Enhance university’s activity & profile in grad studies & research Increase student volume & improve student quality Use grad funding to improve student quality Grow external funds for research, infrastructure, awards Define strategic research areas Assist in development of student recruitment plans Grow international character of research work & partners Grow circulation & use of research results Undergrad Studies New Project Positive transition from high school to university Establish first year coordinator in SASC Appoint first year coordinator in FASS Implement academic advising plan Integrate Campus Life & Career Services into SASC Strategy: Continually improve the quality of the student body Increase co-ops and placements Set appropriate enrolment targets in programs & faculties Raise high school entrance averages relative to province Increase proportion of high achieving students Set appropriate targets for international students Review articulation agreements Continue university retention committee Monitor impact of new rules on retention & update Implement clear & uniformly applicable rules Correct courses with high no-credit rates Support mission of CIE Faculty and Staff Strategy: Recruit and retain highest quality staff Congenial, supportive, equitable work environment Multi-year schedule for hiring faculty and staff Passed Project Promote collaboration with employee groups Advancement Strategy: Strengthen university’s position regionally, nationally, and internationally Develop integrated plan for all Advancement units Develop diverse and equitable institutional image Velocity Deliver products & services faster Capacity Handle more work with same resources Satisfaction Improve customer service and satisfaction NPV Positive net present value of costs & benefits Decisioning Improves ability to make more collaborative and timely decisions Leverage Maximize use of existing assets MarketShare Risk Community Strategy: Foster identification & attachment to Carleton Promote community of learning Develop universitywide events Promote diversity and civility Develop university organized culture events on campus Infrastructure and Financial Management Strategy: Improve the physical plant and campus infrastructure Refine and develop Campus Master Plan Improve physical appearance & cleanliness of campus Create comfortable spaces Continue install and upgrade of campus network Address deferred maintenance backlog Continue to implement new admin system Strategy: Maintain financial viability of the university Improve and modify global budgeting system Reduce accumulated deficit Maximize external funding of projects Description Lower the cost to operate the university. Strategy: Improve retention and graduation rates Hurdle 2: How well does the project meet the university’s goals? Strategy: Enhance the student university experience Hurdle 1: Does the project meet the university’s goals? Grow volume profitably Lower risks of running the university Innovation Increase innovation & improve learning processes. Mandated Non-negotiable operational requirement or legislative demand. Yes/No Project Planning – Change Request or Project? Low priority and less than 20 days and low impact and not complex No additional resources required Resources available Schedule request by project office Resources not available Review request by project office Approval High priority, or more than 20 days, or high impact, or complex Submit new request by functional area Review of project charter by steering Rejection Approval Approval Additional resources required Review of project charter by steering Review of charter by budget committee Rejection Rejection Start work by team Hold request Develop project plan Cancel project or revise charter Develop project plan Cancel project or revise charter Cancel project or revise charter Project Planning Project plan – Standard requirement – PMI based – Scaleable Cost Comparison ERP implementations at other institutions ERP Implementation Costs - Summary $250.0 $240.0 $230.0 $220.0 $210.0 $200.0 $190.0 $180.0 $170.0 $160.0 $150.0 $140.0 $130.0 $120.0 $110.0 $100.0 $90.0 $80.0 $70.0 $60.0 $50.0 $40.0 $30.0 $20.0 $10.0 $0.0 College Carleton University University A University B University C University D Wayne State University of Illinois ERP Implementation Costs - Detail Institution College - Banner Implementati on Cost ($ Million) $9.5 Modules Included in Cost Student, Finance, HR Carleton University - Banner $11.9 Student, Finance, HR, Alumni University A - Banner $11.9 Student University B - Peoplesoft $20.0 Student, Finance University C - Banner $26.0 Student, Finance, HR, Alumni University D - Peoplesoft $30.0 Student, Finance, HR, Alumni Wayne State - Banner $45.0 Student, Finance, HR. Alumni $250.0 Student, Finance, HR, Alumni University of Illinois - Banner Project Rules (with apologies to Einstein) If we knew what it was we were doing, it would not be called a project, would it? The most incomprehensible thing about projects is that they are comprehensible. Anyone who has never made a mistake on a project has never tried anything new. Try not to deliver a successful project but rather try to deliver a valuable project. You do not really understand a project issue unless you can explain it to your grandmother. Sometimes one pays most for the project solutions one gets for nothing. Questions