Way too many ERP projects not only end up exceeding their allocated budgets, just as often, they lead to significant revenue loss due to a decline in core business productivity. In case you think I am being a Chicken Little please consider the data. A recent IDC survey shows that the negative impact of business disruptions attached to ERP modifications is simply too high: a 20.9% decline in stock price, a 14.3% revenue loss due to delayed product launches, and a 16.6% decline in customer satisfaction. Reported losses from survey respondents making ERP changes range from $10 million to over $500 million. If you would like to better understand what’s behind these numbers, you can read about the survey results in the IDC article: Business Cost of ERP Failure_IDS Survey_12-2009. Manufacturing businesses, especially those with a high degree of complexity are at greater than average risk of such an outcome. Of the myriad ways that ERP projects run into trouble, they all boil down to two categories of mistakes.

Mistake #1. Selecting the Wrong ERP System:
All too often the company’s core business processes are inadequately represented on the selection team. If you are a manufacturing-centric organization having deep and consistent core business input is a make-or-break critical component your ERP project. Many ERP teams include core business representatives at either too high or too low a level. You need people who really understand what it takes to design, build and deliver your products. You need senior core business leaders to balance the Finance bias that is always behind an ERP purchase. Don’t let finance over-rule the business needs when it comes to ERP selection and configuration. Without essential core business input, your ERP requirements will be full of gaps leaving you at high risk of selecting the wrong system.

Mistake #2. Inadequate/Unskilled Project Team with Weak Change Management Capability
Inadequately resourcing such a critical investment is pure foolishness and a prescription for failure. Yet many ERP projects are poorly staffed both internally and externally and the change management effort is often weak to non-existent. Getting the right outside help for technical support, project management and change management is non-negotiable. Without these three pillars, your project will be crippled from the start. Do not assume that by hiring brand names you have solved your problem. Every ERP project is as unique as the business it is intended to support. While there are many instances where the big names (SAP/Oracle/Deloitte/Accenture) are exactly what is needed, there are also many cases where other options are a better fit. Too often companies try to CYA by using a big name (expensive) system integrator consultant and choosing a big name (expensive) ERP tool.

Bottom Line
Don’t make mistakes #1 or #2. Find the right tool for the unique needs of your business and commit the time, people and dollars to the best possible implementation effort. Otherwise the somewhat anticipated high cost of your ERP consultant and the somewhat anticipated high cost of the ERP system will be eclipsed by the completely unplanned cost of your business loss.

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The Secret Power of Time – Phillip Zimbardo 2010

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Money – It’s table stakes i.e. necessary but not sufficient. You have to give people enough money so that they are not worrying about money and they can focus on work. Once they are focused on work, the level and quality of the work is dependent on non-monetary factors.

Position – (see Money) again necessary, especially for high potential employees, but not sufficient.

So what are the real motivators of innovation, of quality and of leadership in the work environment? ….drum roll please….

1. Autonomy – working with minimal supervision on things of your own choosing.

2. Mastery – the opportunity to get better at something that matters

3. Making an Impact – creating positive change

What does this mean for the overused change manager’s favorite excuse: resistance to change?

Change resistance comes into play when #1, #2 and #3 are neglected. In other words, we resist when we did not chose the change, when we don’t feel competent to execute the change, when the change does not matter to us, or when we don’t see any positive benefit from implementing the change.

All Change Management Methodologies must at a minimum address these three issues.

For an insightful and amusingly animated explanation of this concept you will not do better than to watch this short video from Dan Pink:

The Surprising Truth About What Motivates Us – Dan Pink

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When we feel something strongly, we find the logic to support it. When we don’t feel strongly, data is interesting but it doesn’t move us to action. If you don’t think this is so, read Mark Lilla, Columbia Professor of Humanities and NY Times Author. His compelling piece looks at how passion trumps logic in politics, in history, and I may add, in business.

For our President, and for Change Managers everywhere.

The President and the Passions – Mark Lilla – 12/19/10

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“How to truly make players better, what that really means,” he said. “It’s not just passing to your guys and getting them shots. It’s not getting this or that many players into double figures. That’s bull[expletive]. That’s not how you win championships. You’ve got to change the culture of your team – that’s how you truly make guys better. In a way, you have to help them to get the same DNA that you have, the same focus you have, maybe even close to the same drive. That’s how you make guys better.

“I’ve never understood this stuff, where a star player sits out and a team goes into the tank. Well, they need him because he makes them better. Well, if he’s making them better, they should be able to survive without him. That’s how you lead your guys. You’ve got to be able to make guys suffice on their own, without you. If you’re there all the time and they take you away, they shouldn’t need a respirator.

“Once I understood all that, I looked at things completely different. I took my hands off. I didn’t try to control them. I let them make decisions, make their own [expletive]-ups and I was there to try and help them through it.”

Hmmm…did he really say “you’ve got to change the culture of your team.”? Yeah, he said that. Remember, this insight comes from a guy who is absolutely obsessed with winning championships. Not with playing basketball, not with winning games, not with being a great team member, not with being a leader, Kobe doesn’t care about any of that (expletive). He cares about winning the championship. And he just said that the way to do it is by creating a culture where everyone shares the same winning obsessed DNA. And judging from the results, he has figured out how to do just that.

So how do you inspire a championship mentality? First you need to become obsessed with it yourself and then become obsessed with figuring out how to instill this in your company. You try things. A lot of things to see what really works. And you let the team try things, to see what works. Most leaders are at least a little bit obsessive. But that’s like being a little bit pregnant. Go for it. Do it. Stay up all night and figure out how to win. And be attentive to the specifics of your obsession.  Are you obsessed about leadership? About stock price? About quarterly results? Or are you obsessed with being the best in your market or the best to your customers. Are you focused on you, or on your team? A lot of questions I know, but I think you can read my bias. The point is, get obsessed about the right things, the big things, the ultimate end game. Hang out with your team and share your obsession. Make it contagious. Jobs does this, Welch did it and Kobe does it. What more proof do you need? Go for it.

Going for it means you need to stop worrying about balance. A heretical idea. But that’s what it takes. Leaders spend most waking and some sleeping time thinking about their obsession, they talk about it, read about it, work on it and work on it some more. It is an all out effort in a very specific direction. You may be tired but you will also be energized and you will never be bored. You will also become profoundly interesting to others, even magnetic. When that happens things start to go your way. People, money, solutions start coming to you.  In short, your life will change. Anyone can do this. You just have to decide it, declare it and go for it.

Good luck!

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From Dr. Brené Brown at TEDx Houston:

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• Speak softly even when people are conferenced in and listening to you via cell phones or speakerphones
• Establish subject matter mastery via sophisticated or technical words and complex sentence structures
• Talk at the speed of light either because you are under 30 (or want others to think you are) or because you think it makes you sound smart

If you answered YES to any of the above, PLEASE HEAR THIS!: YOU ARE THE RUDE  CAUSE OF POOR COMMUNICATION – SO STOP IT!

We all know that failure to communicate is a primary cause of business failure to execute on strategy. For the sake of your expensive McKinsey strategic reports, your BHAGs and your visions of market leadership, it is time to learn and practice the rules of Global English. Do your L.A.P.S.S.S.!

1. Loud – Speak loudly so people can at least receive the soundwaves.
2. Attention – Look directly at the person you are speaking to. If you are not sure they are paying attention, use their name. If they are not awake, use their name plus rule #1.
3. Pause – Many non-native English speakers are “translating in their head”.  Give them the grace of a slow feed.
4. Slow – Speak slowly . . . very slowly…with  occasional pauses (see rule #2)….That’s…better.
5. Simple – Use simple words. Native English speakers use over 5000 different words, but non-native speakers use 500 – 1500. If you have a native English speaker’s vocabulary, surely you can come up with simple synonyms in the interest of being understood.
6. Short – Use short sentences. Do not speak in long, run on sentences, even if they are technically good english, because this will require the listener to catalog backwards to your earlier phrases to try to find the simple noun-verb-object through-line that will help them to make sense of what you just said. – Capiche?!
7. Smile – If they can’t understand you, maybe you can make them feel comfortable enough to ask you to repeat it one more time.

For more specific examples of how to apply Global English go here:

http://www.webpagecontent.com/arc_archive/139/5/

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Here is a Now-Next-LaterTM approach to helping your senior leaders understand and support your project.

Now: Meet with the senior stakeholders one-on-one. Ask what they understand about the project. Clarify any confusion. Ask what they are concerned about. Find out the details of how the proposed changes will affect them. Find out their concerns. Communicate their concerns to your project sponsor.   (Of course you will get permission from the stakeholders to share their concerns with the project leader).

Next: Have a second meeting with the senior stakeholders as a group. Your goal is to help them reach agreement on the project purpose, approach and roles. As you facilitate, help, but don’t push. You need to keep the door open for future opportunities. What is not resolved today may be resolved tomorrow.

Towards the end of the meeting invite the project sponsor to join the group. With the sponsor present, work with the group to discuss and document  a “Preferred Future”. The sponsor can highlight the risks of the status quo and focus the group on the urgent need for the project.

Later: As the urgency of doing nothing becomes clearer, and the commitment of the project sponsor is felt, and your senior team feels that their concerns are being heard and addressed, they will be much more likely to support the project. It is often useful to repeat this exercise as a way of re-energizing the senior team and ensuring they will go the distance with your project.

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Enlightened:

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When Patrick refers to an executive as “abrasive”: he’s not talking about everyday dysfunctional executives. These are a dime a dozen and we all fit that bill now and then if we tell ourselves the honest truth. He is talking about the highly productive, highly valuable to the business executive who consistently exhibits borderline abusive, aggressive, or passive aggressive behavior.

What do you do if this shoe fits your boss, your client, or your co-worker?

Things to know:

1. Acutely abrasive, successful people in business have survived being managed by other acutely abrasive people so they think this is a badge of honor, a sign of their tough skin and if they survived it, you should too.
2. Acutely abrasive, successful people tend to be low on the EQ side. In other words they are clueless regarding the degree of negative impact they have on others.
3. Acutely abrasive, successful people in business are motivated by business results. They are especially motivated by how their achievement of business results affects them. Therefore they will change behavior only in response to an imminent threat to one of the Three Ps:

• Position
• Promotion
• Pay

What to do:

If you have a very high EQ of your own and feel you have the @#!**s to go toe-to-toe with this person, you can try it. Go in with some examples in your holster and focus on shedding light on the negative perception created by the behavior.

If you are a mere mortal, or not well positioned to effect one of the three Ps, collect your evidence in the form of examples and reactions (yours and those of others in the line of fire) and bring them to the powers that be. This is most likely the boss of the offending executive or someone in HR.

My strong recommendation would be to also provide the name and contact information of a specialist like Mr. Rielly. If you or someone you know is finding their business objectives and quality of life derailed by the subject of this post, you may want to contact Mr. Reilly directly.

One last comment: Patrick seems to be an intelligent, cool calm and collected person.  No small feat given that he eats abrasive people for breakfast.

May The Force be with you and with him:

Patrick Reilly: http://www.resourcesinaction.com/

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