AGC'S Contractor to Contractor Webinar Series:
ERP Implementation Strategies and
Best Practices
LaDonna Darland
Lead Business Analyst
Jeffrey Bruce
IT Manager of ERP Systems
Steven Gross
Director of Client Solutions
Computer Guidance Corporation
Sponsored by
www.computerguidance.com
LaDonna Darland
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Over 20 years experience in the construction
industry, working for Skanska in various roles and
functions from project accounting, safety and ISO
14000, back-office accounting, marketing, human
resources and IT.
In her role, LaDonna manages process design and
rollout of software packages within the organization.
She has over 20 years experience working with
Computer Guidance’s eCMS ERP solutions.
LaDonna has a Bachelor of Arts in Asian History and
Master of Science in Environmental Engineering.
Skanska USA
Heavy Highway/Civil
US Divisions:
• Commercial Development
• USA Civil
• USA Building
• Infrastructure Development
Skanska is one of the world's leading construction
groups. In the U.S., we are a provider of
comprehensive construction services and a
developer of public-private partnerships. We apply
our expertise to everything from small renovations
to billion-dollar projects, using a variety of
delivery methods.
Steven Gross
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[email protected]
480.444.7026
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Responsible for directing initiatives designed to
maximize the effectiveness and utilization of
Computer Guidance software applications at
customer environments. His extensive expertise helps
customers in realizing the highest levels of ROI from
Computer Guidance ERP solutions
Steve delivers expert review and analysis of system
usage, gap analysis and best practices consulting.
Steven has over 20 years of experience working with
and advising construction companies on successfully
implementing accounting and project management
systems
Steven holds a BS degree in Business Information
Systems from Illinois State University.
Discussion Points
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Implementation Strategy
ERP Functionality Considerations
Project Planning and Management
Requirements and Expectations
Process Management and Re-engineering
Data Conversion Considerations
User Training
Executive Buy-ins
Documentation
Change Management
Communication
Employee Motivation
Post-implementation Analysis and Review
Sponsored by
Implementation Strategy
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Review of ERP Purchase and Implementation Goals
Relationship to the business
Examine current business processes and information flow
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Different Approaches
• Application-based
• Division-based
• Traditional vs. Turnkey Approach
Implementation Strategy Considerations
influenced by ERP technology
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ERP functionality
ERP platform
ERP deployment
IT infrastructure
Third-party solution integrations
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Business Requirements
Technology solutions
Operations and Processes
Implementation Strategy
• Why is it important that you select and utilize the right
implementation strategy?
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Higher stakes – Management expectations are high, as ERP success brings faster and
better reporting along with improved workflow and efficiency.
Substantial costs – There is generally a hefty price tag attached to the project in terms of
software, IT services, and staff hours.
Company-wide ramifications – There are people to please across the organization.
Failure to implement the system correctly can diminish the ability to generate necessary
reporting and can quickly become a career-limiting exercise.
ERP Functionality
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Business areas touched
Business strategy and goals
are aligned with functionality
Industry-specific functionality
vs. common technology
functionality
Security
Standardization
Automation
Productivity
Compliances
Implementation Project
Planning and Management
Things you need to have:
• Readiness Assessment
• Plan
• Timeline
• Budget/Cost
• Governance
• Resources
• Technology Solutions
• Human Resources/The Team
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Milestones
Requirements
• Data Conversion Plan
• Training Program
Things to continuously manage:
• Executive buy-in
• Team Motivation
• Process Re-engineering
• Change Management
• Requirement – Solution – Goal
• Business – IT Requirements
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Documentation
Communication
Training
Project Plan
Installation Test Environment
Process Design Configuration
Training
Testing Validation
Go‐live
Post‐
implementation
Human Resources/Project Team
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Project sponsors
Executive buy-in
Project team
Communication
Project team charter
Business area experts
Budget/Cost and ROI
Key Items to Consider:
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There is no real endpoint to an ERP implementation
Clearly-defined ERP implementation goals are critical
Business strategy and objectives change over time
Continuous improvement efforts to gain expected ROI
Plan for new functionality introductions
Technology innovations
Data Conversion
Software Testing
Technology Validation
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Do the work before the go-live
Don’t underestimate the importance of testing
Establish governance over the testing process
Create a detailed testing plan that addresses converted data as
well as process change.
Test
Test
Comm
unicat
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Chang
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Training Program
A recent survey conducted by Aberdeen
Group polled 170 organizations with
implemented ERP systems.
Some Findings:
• the best run companies are the ones who
implement training strategies for new
ERP end users.
• best-in-class organizations are more than
three times as likely to have a
certification program for their ERP users
and are over four times as likely to
measure the ERP aptitude of users.
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On-line/Web-based
On-site/classroom
Self-paced/group-style
Mixed approach
Per business areas
High-level all user training
Specialized business-line
application training
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Requirements and Expectations
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Succinct business case
Clearly defined goals
Actionable solution
Business needs to drive
technology solution
implementations
Process Management and Re-engineering
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Revisit the goal of the project again and again and again
Continuously review where you are and where you are headed and
why
Must plan ahead with every decision and anticipate the
consequences to the best you can
Measure upstream and downstream impact of an integrated system
when designing and before executing
Incorrect Assumptions – Skanska Case Study
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Conversion to a new ERP package is an IT project and should not tie up
business resources
How the current ERP system functions does not matter
Conversion will force processes to align
The business can dedicate resources to assist
The business can articulate current processes
Schedule can be created prior to analysis of the current and future
business processes
Management on an individual basis can make decisions about process
changes
The new ERP system could not fit their requirements where in fact the ERP
could address the third-party functionality that was in place
Lessons Learned – Skanska Case Study
What we did not do from the beginning…
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Put together the “right” team to perform an accurate evaluation by asking
the “right” questions
Give the “right” team enough time to perform evaluations
Identify a leader for that team that can communicate with the business
directly and drive the process changes
Form partnerships with subject experts to come to the right decisions.
Identify the exceptions to the rules and measure their significance but
focus on core processes
Communicate findings to the Business Decision Makers in a manner that
is simple and well defined
Lessons Learned – Skanska Case Study
What took too long to ask…
• What practices differ from the Skanska model and should they be
accommodated?
• Can the current software package meet the required
accommodations? Are modifications necessary?
• What can change in the business process to meet the software
limitations or the parent process requirements?
• What can IT do, technically, to assist in or smooth the transition?
• Are we solving any current business issues with the new ERP
package?
• Are we creating new business issues with the new ERP package?
Proposing Major Process Changes –
Skanska Case Study
What we developed
• Clearly identify all process changes with a list of pros and cons
• Outline alternative designs and what the preferred design is and
why
• Identify resources from within the business to assist.
• Highlight solutions to current business issues.
• Explain what the business may be giving up as a result.
• Give an honest assessment of the time it will take to implement.
• Present to the right mix of business professionals
Emotional Response / Change Management
Skanska Case Study
Excitement
Momentum
Recognition
Doubt
Disappointment
Fear
Delivery
ERP User Base
Executive Buy-in
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Present the case for the project with actual facts
Demonstrate progress with KPIs
Communicate both positive and negative results
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Unified executive leadership
A “must have” to secure success
It needs to be nurtured along the way
Communication back and forth is essential
Employees need to know this exists
Endorsement vs. fear factor
Employee Motivation
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Share information from start to finish
Share the good and bad
Seek their insight and feedback
Make them feel part of something
important, exciting and new
Endorse change
Make them accountable
Allow creativity
Measure performance and adjust
behavior accordingly
Documentation
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Content management software
Shared files
Shared calendars
Project documents
Project Management solutions
Communication solutions
Leverage technology solutions if you can
Document why decisions are made and when
Post-implementation Analysis and Review
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Celebrate successes
Learn from mistakes
Do both as a team
Document findings
Review them before starting
next project
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Did we meet the goal?
Did we meet the budget?
Did we do it on time?
Are we better off today than
before the project?
Implementation Pyramid by Skanska
Key Success
Factors Chart
by Computer
Guidance
Corporation
Computer Guidance Corporation
AGC FedCon
CFMA Conference
eCMS – Construction ERP Solution
www.computerguidance.com