Ever asked by a company to help them implement integrated solutions and only to find out that the company is really not ready for it?
Companies may think that they are ready for an integrated ERP Solution, but in reality they are not. Or companies running ERP for several years feel they have not been benefiting from ERP enough and want to implement an Integrated Corporate Performance Management Solution. But in reality they may also not be ready for such a solution.
Here are 25 questions ( developed by Keith Launchbury and Carol Ptak ) which should be answered before even starting implementing integrated solutions:
1) Have you transformed from internally focused performance measurements to customer-focused performance measurement systems?
2) Have you flattened your organizational hierarchy?
3) Have you fully educated your personnel in enterprise-wide thinking?
4) Have you successfully moved to a team-based organization?
5) Have you re-engineered your major business processes and eliminated waste?
6) Have you moved from traditional cost accounting to value-added costing?
7) Have you adopted the principles of Integrated Supply Chain Management?
8 ) Have you implemented completely reliable information networks and communication systems?
9) Have you changed your evaluation and appraisal systems to recognize both team and individual performance?
10) Have you become a customer-focused organization?
11) Have you developed and implemented procedures that ensure standardization of information in all business processes and operations?
12) Are your business leaders committed to the principles of life long learning?
13) Have you replaces organizational silo’s with process teams?
14) Have you adopted a single company compensation plan?
15) Have you benchmarked your organizational performance with best in class practices by global leaders?
16) Can you demonstrate total company-wide process capability performance of Six Sigma or better?
17) Have you developed business policies and procedures to ensure complete data integrity?
18) Have you prepared your people to operate in a paperless ( i.e. non word/excel ) environment?
19) Have you become a truly global company?
20) Have you adopted an organizational culture with shared vision, values and goals?
21) Have you driven out fear?
22) Have you developed a truly flexible workforce and process capabilities?
23) Have you educated all your business leaders in Integrated Resource Management?
24) Do you have a formal process for identifying and resolving process constraints?
25) Have you institutionalized the process of continuous and rapid operational improvement?
For each question you can give a score between 0 and 4
4 = fully implemented
2 = partially implemented
0 = not implemented
Subsequently add all the scores together to arrive at the total score. This total score will tell you whether the company is ready for integrated enterprise solutions.
90 points and higher: organization is ready for ERM
70 – 90 points: organization is close to ready for ERM
50 – 70 points: organization needs significant work
Below 50 points: organization needs substantial prepartion work; do not implement ERP
In following posts I will discuss various of these questions in a bit more detail.