When a business looks at productivity improvements and improved profitability, they often look outside their company for the skills to help them get there. This is particularly the case when new software is installed. They look to the software company as the "experts".
The software company are experts in their own software, but not necessarily in getting value from their software. In order to get value from software, it has to help you to achieve your goals. That starts with your existing business processes.
Your business already does some things right. There may be opportunities for improvement, and many of the opportunities are already known by your staff. They just don't know how to make the improvements.
When you turn over a software project to your supplier, you are giving them the keys to your business. They don't know your business! They know their software.
The challenge is to get the knowledge from your staff of what works and does not work. Help them to develop solutions to improve productivity, increase sales or reduce costs, whatever your current priority may be. Focus on the issue that is most important to you. Once they understand the priority, and have a way of making their knowledge known, they can help to redesign the process to achieve the improvements. Once they understand that they will be able to see where the software can help them.
Most small businesses don't have the kind of skills and experience to bring people together
to achieve this goal. So they have to go outside for help. The mistake that is made here is that they turn the whole process over to outsiders to design the new solution. What is needed is someone who can help bring that knowledge to the surface, educate your staff about process improvement and help them to redesign the process. Notice the emphasis on help, not do it for them.
Doing this will ensure that they are focused on your goals, they will buy into the solution and own it in the end.
Not only will the job be easier, the solution will be better, and the cost will be lower (you are paying for a facilitator or coach, not a designer).
Showing posts with label People. Show all posts
Showing posts with label People. Show all posts
Tuesday, April 21, 2009
Friday, March 20, 2009
Four steps to success of software projects - Step 2
Once you have set your goal for a project and have visualized the results, you need to start looking at your project team. In most small businesses, there are not a lot of people available to work on such a project. That's why most small organizations take the lead of the software supplier, and let them run wth most of the project.
In larger organizations, where there are people who can dedicate themselves to the project, they tend to be technical people and the total focus is on the implementation of the software.
This is mistake #2.
The software will not deliver the results that you need! Your people will! They will only do that if they are aware of your goals and your vision, are educated in the tools necessary to deliver your vision and work together to make it happen.
Your project team must consist of the people who will be doing the job after implementation, the technical resources that will implement the software, the people who will provide the education and training. Most of these people will not be dedicated to the project. They will do activities that are required, but they must all understand the goals, the vision and their roles before during and after.
The big mistake that many organizations make is to not involve the people who are currently doing the job, because they are too busy. They are the people who understand what is being done, must understand what has to be done after implementation, and must be involved during the project.
The four key elements of this phase are: Awareness, education, involvement and teamwork.
In larger organizations, where there are people who can dedicate themselves to the project, they tend to be technical people and the total focus is on the implementation of the software.
This is mistake #2.
The software will not deliver the results that you need! Your people will! They will only do that if they are aware of your goals and your vision, are educated in the tools necessary to deliver your vision and work together to make it happen.
Your project team must consist of the people who will be doing the job after implementation, the technical resources that will implement the software, the people who will provide the education and training. Most of these people will not be dedicated to the project. They will do activities that are required, but they must all understand the goals, the vision and their roles before during and after.
The big mistake that many organizations make is to not involve the people who are currently doing the job, because they are too busy. They are the people who understand what is being done, must understand what has to be done after implementation, and must be involved during the project.
The four key elements of this phase are: Awareness, education, involvement and teamwork.
Wednesday, March 18, 2009
Four steps to success of software projects
Many business owners are frustrated with the performance of Information Technology in their business. To some, it is the reliability of the hardware and software, to others, it is the language of IT that gets them. They are trying to run their business and unless they are technicaly proficient, they get frustrated.
The real issue, though, is their sense of value and lack of control. They don't feel that they are getting as good a return on their investments and are frustrated that they can't seem to do anything about it.
This doesn't have to be the case. As a business owner, you don't have to be technically skilled, like you don't have to be a mechanic to drive a car.
The problem is that all of the focus is on the car. If you had to know how to repair a car before you could drive, most of us wouldn't drive. If most of us knew how to repair a car before we drove, car manufacturers wouldn't have to put any effort into preventing them from failing.
Unfortunately, computers haven't reached that place yet. Most computer technicians believe that everybody should be knowledgeable about computers, so they don't consider speaking business language.
In order to fix this problem, we have to change our attitudes. As business owners, we need to insist that software developers and companies focus on the business issues and not just on implementation of the software. If we ensure that they do this, we will increase the value that we receive, decrease the frustration and improve our business performance.
Where do we start?
My approach is to change the sequence. Often a business project that will require software, moves straight into the project development phase and all future focus is on the implementation of the software. This is the problem period and is the source of all future problems.
My approach goes through four steps:
1. Purpose
2. People
3. Process
4. Technology
Yes, technology is the last step. It may be the largest. It may be the longest. Many of the benefits can be received before the software is fully implemented. There are big benefits in the first three.
I will outline each of the steps and their benefits in future posts.
The real issue, though, is their sense of value and lack of control. They don't feel that they are getting as good a return on their investments and are frustrated that they can't seem to do anything about it.
This doesn't have to be the case. As a business owner, you don't have to be technically skilled, like you don't have to be a mechanic to drive a car.
The problem is that all of the focus is on the car. If you had to know how to repair a car before you could drive, most of us wouldn't drive. If most of us knew how to repair a car before we drove, car manufacturers wouldn't have to put any effort into preventing them from failing.
Unfortunately, computers haven't reached that place yet. Most computer technicians believe that everybody should be knowledgeable about computers, so they don't consider speaking business language.
In order to fix this problem, we have to change our attitudes. As business owners, we need to insist that software developers and companies focus on the business issues and not just on implementation of the software. If we ensure that they do this, we will increase the value that we receive, decrease the frustration and improve our business performance.
Where do we start?
My approach is to change the sequence. Often a business project that will require software, moves straight into the project development phase and all future focus is on the implementation of the software. This is the problem period and is the source of all future problems.
My approach goes through four steps:
1. Purpose
2. People
3. Process
4. Technology
Yes, technology is the last step. It may be the largest. It may be the longest. Many of the benefits can be received before the software is fully implemented. There are big benefits in the first three.
I will outline each of the steps and their benefits in future posts.
Sunday, February 15, 2009
Herding Cats, Buffalo, Geese and Information Technology
These three types of animals are very different in their makeup, and the way that they can be managed. This makeup also means that they deliver very different results.
Herding cats is a real challenge. Even though they are a common house pet, they are very difficult to control. Cats will do what they want to do, whenever they want to do it. Working with one cat is manageable. When you get a second or third or more, they are impossible. Where some animals, such as cows or buffalo, follow a common path, cats don't. They do whatever they please and when you try to exert control they scatter.
Buffalo are another matter. While much bigger and stronger, buffalo are very easy to control. They follow the leader. They don't think and choose for themselves. Before controls were established, they almost became extinct. All a hunter had to do was control the leader, and the others would follow.
Geese, on the other hand are very different. Each goose knows where it is going and what is needed to get there. They work as a team. When one tires or falters, another quickly takes over. Split them up and they continue to function, and eventually get back together. They know that their strength is in their support of each other, whether its two, five or ten. There is strength in numbers, if those numbers understand where they are going and how to get there. When a weaker member gets in the lead, they don't have to be the strongest. They can lead for a short period, yet know that another is ready to take their place.
In a business, we have cats, buffalo and geese. I have seen many organizations that function with mostly buffalo. As a result, they succeed for a while, because of the strength of their leader. But when their leader falters, they lose.
Many organizations prefer to manage buffalo, because it's much easier than trying to herd cats. But cats are free thinkers. They have ideas that can help an organization, but there is no common direction in the organization. Each cat has his own views and approach, and since there is no common goal, there is no way to measure success. Since cats are fighting the system, managers attempt to put controls on them. This succeeds in one of two things: the cats become buffalo; the cats leave the system. Both result in a loss for the business. Buffalo will become extinct, unless their system is managed for them.
The solution is to help cats become geese. This means common goals and a system for reaching those goals with the strength of each individual. What is that system? It may be slightly different for each business, but the process for achieving that goal must be understood by every individual within the business. They must know how what they do affects every other step in the process. This may sound difficult, but it isn't. It's a matter of focus.
What does this have to do with Information Technology? When you change the software in your business, you are changing the system for meeting the goal. Cats, buffalo and geese will all react differently. This is what change management specialists are trying to manage. If you don't understand what animal you are working with, you are going to have problems. No matter what you do, you can't herd cats. No matter what you do, you can't get buffalo to think and act independently.
My next post will talk about what you can do to handle a major change such as software implementation.
Herding cats is a real challenge. Even though they are a common house pet, they are very difficult to control. Cats will do what they want to do, whenever they want to do it. Working with one cat is manageable. When you get a second or third or more, they are impossible. Where some animals, such as cows or buffalo, follow a common path, cats don't. They do whatever they please and when you try to exert control they scatter.
Buffalo are another matter. While much bigger and stronger, buffalo are very easy to control. They follow the leader. They don't think and choose for themselves. Before controls were established, they almost became extinct. All a hunter had to do was control the leader, and the others would follow.
Geese, on the other hand are very different. Each goose knows where it is going and what is needed to get there. They work as a team. When one tires or falters, another quickly takes over. Split them up and they continue to function, and eventually get back together. They know that their strength is in their support of each other, whether its two, five or ten. There is strength in numbers, if those numbers understand where they are going and how to get there. When a weaker member gets in the lead, they don't have to be the strongest. They can lead for a short period, yet know that another is ready to take their place.
In a business, we have cats, buffalo and geese. I have seen many organizations that function with mostly buffalo. As a result, they succeed for a while, because of the strength of their leader. But when their leader falters, they lose.
Many organizations prefer to manage buffalo, because it's much easier than trying to herd cats. But cats are free thinkers. They have ideas that can help an organization, but there is no common direction in the organization. Each cat has his own views and approach, and since there is no common goal, there is no way to measure success. Since cats are fighting the system, managers attempt to put controls on them. This succeeds in one of two things: the cats become buffalo; the cats leave the system. Both result in a loss for the business. Buffalo will become extinct, unless their system is managed for them.
The solution is to help cats become geese. This means common goals and a system for reaching those goals with the strength of each individual. What is that system? It may be slightly different for each business, but the process for achieving that goal must be understood by every individual within the business. They must know how what they do affects every other step in the process. This may sound difficult, but it isn't. It's a matter of focus.
What does this have to do with Information Technology? When you change the software in your business, you are changing the system for meeting the goal. Cats, buffalo and geese will all react differently. This is what change management specialists are trying to manage. If you don't understand what animal you are working with, you are going to have problems. No matter what you do, you can't herd cats. No matter what you do, you can't get buffalo to think and act independently.
My next post will talk about what you can do to handle a major change such as software implementation.
Wednesday, January 21, 2009
Why CRM fails
Customer Reltionship Management projects have a high failure rate. There are many reasons for failure and most of them have nothing to do with software. A recent article on InsiderCRM describes the issues.
The key to any software project is to recognize that there are three components to success, People, process and technology, and any project that focuses solely on the technology is doomed to failure.
To start with, you must recognize that salespeople are often independent operators within a business. If they don't see the value, they won't do what you need. Other parts of the business are often easier to work with, because their activities are integrated with the use of the software. Salespeople seldom can function without the software.
Secondly, you must recognize that the software is useless without a sales management process. The software provides you with a framework to deliver and improve that process, but it is not necessarily obvious.
The last is the software and other technical components. As some of these activities are complex and often take a lot of time, they often become the focus of the project. This is where everything gets off the rails. Yes, you must plan and implement the software, but this component is the least important.
The article that I have referenced describes this in more detail, but there are two items that stand out:
The key to any software project is to recognize that there are three components to success, People, process and technology, and any project that focuses solely on the technology is doomed to failure.
To start with, you must recognize that salespeople are often independent operators within a business. If they don't see the value, they won't do what you need. Other parts of the business are often easier to work with, because their activities are integrated with the use of the software. Salespeople seldom can function without the software.
Secondly, you must recognize that the software is useless without a sales management process. The software provides you with a framework to deliver and improve that process, but it is not necessarily obvious.
The last is the software and other technical components. As some of these activities are complex and often take a lot of time, they often become the focus of the project. This is where everything gets off the rails. Yes, you must plan and implement the software, but this component is the least important.
The article that I have referenced describes this in more detail, but there are two items that stand out:
- Face the truth. What are the obstacles and challenges to making this work? They are unlikely to be the software or technology.
- What's in it for us? How will your business be improved by implementing CRM? Be very specific in terms of business outcomes. A wish will not achieve it.
Friday, November 21, 2008
Information Technology is like a one legged stool
Every business today uses computers. It's hard to run a business without one. Even if you have a very simple business, you need to communicate with your clients and your suppliers and they force you into this world. Most businesses look at computers to improve the waay they do business. They look to productivity improvements, or functions that cannot be done without them.
Most of the technology that we buy is underutilized. The price of hardware has dropped so much that is is cheaper to put in too much hardware than to provide smaller alternatives. Software is the same. It is cheaper to distribute a single piece of software than to try and maintain multiple copies. So we have much more than we need.
There are two problems with this excess capacity. First, the software and hardware is more complex and harder to maintain. Each of us pays for this complexity. We may think we are getting value for money, but unless we can use it, the complexity adds up to more costs. In a large business, this may be manageable. In many small businesses, this can add up to slowdowns, extra downtime, extra support costs, productivity loss.
The second problem is that the complexity makes the software more difficult to learn and implement. I see many small organizations that fail to achieve the benefits from the software they bought. Part of this is caused by the fact that there are too many features. Part of it is caused by the expectation that the software is bought as a "silver bullet". Install the software and it's magic. Things will be better. It doesn't happen. It takes a lot of effort to get value from new software. Some parts may be easy. Getting real value is not.
I see Information Technology as a three legged stool. I will ignore the hardware at this point, because it doesn't provide value. It simply allows you to use the software. I will also ignore tools like Microsoft Office for the moment.
Leg #1 is the business software. It can be as simply as Quickbooks or as complex as SAP. Business software comes with built in business process assumed. It expects you to work in a certain way. If you do, then you get the best return. It helps you to do the job. If you don't, then it can make your life difficult, whether by forcing you to do things multiple times or by getting bad information because of the quality of data entered. If you look at your business process before you try to implement, you will be more successful.
That leads us to leg#2, the business process. The business process is how something moves through your organization, say from order to cash (your real goal is to get paid for the product or service that you deliver). If you understand all of the steps in this process, and understand how the software will help you to make that process more effective, then you will get significantly more value from the software. In many cases, even when an organization has looked at its business process, they encounter problems. The reason is that when you change business processes, you affect people. It's often been said that people resist change. That is true. People don't want to change if they don't see the value! Why should we? We are comfortable with what we do, we are more efficient when we know what we are doing, and we know how to prevent errors. Give me a new process that I don't understand, I will be less productive and I am more likely to produce errors. Why should I change? OK, some people like change for the sake of change, but we can only take so much. If you wake up one morning in a new house, have to drive a new car and go to a new job, how comfortable are you?
This leads us to the third leg: People. If you don't consider people, you will be less successful. I have seen many software projects that redesigned and implemented processes without involving the staff that did the job. The designs were based on senior staff or management input, and the process was automated to do what they wanted. The problem was that the process was not based on current reality. It was based on old experience (Senior staff and management don't do the day to day job), or on ideas of how things should work. The staff tried to work with it, but had to create all kinds of workarounds to get the job done. This reduced productivity, created frustrations with the staff and made them resent the change. Is there any doubt as to why people resist change? By involving staff in the goals of the change, in the redesign of the process and in how the software can provide tools to improve the process, you end up with a more effective process and less resistance to change.
So there you have it. A stool with three legs: Software, process and people. All three are critical for success.
There are two other elements that you will see on a stool and these are important as well.
Most of the technology that we buy is underutilized. The price of hardware has dropped so much that is is cheaper to put in too much hardware than to provide smaller alternatives. Software is the same. It is cheaper to distribute a single piece of software than to try and maintain multiple copies. So we have much more than we need.
There are two problems with this excess capacity. First, the software and hardware is more complex and harder to maintain. Each of us pays for this complexity. We may think we are getting value for money, but unless we can use it, the complexity adds up to more costs. In a large business, this may be manageable. In many small businesses, this can add up to slowdowns, extra downtime, extra support costs, productivity loss.
The second problem is that the complexity makes the software more difficult to learn and implement. I see many small organizations that fail to achieve the benefits from the software they bought. Part of this is caused by the fact that there are too many features. Part of it is caused by the expectation that the software is bought as a "silver bullet". Install the software and it's magic. Things will be better. It doesn't happen. It takes a lot of effort to get value from new software. Some parts may be easy. Getting real value is not.
I see Information Technology as a three legged stool. I will ignore the hardware at this point, because it doesn't provide value. It simply allows you to use the software. I will also ignore tools like Microsoft Office for the moment.
Leg #1 is the business software. It can be as simply as Quickbooks or as complex as SAP. Business software comes with built in business process assumed. It expects you to work in a certain way. If you do, then you get the best return. It helps you to do the job. If you don't, then it can make your life difficult, whether by forcing you to do things multiple times or by getting bad information because of the quality of data entered. If you look at your business process before you try to implement, you will be more successful.
That leads us to leg#2, the business process. The business process is how something moves through your organization, say from order to cash (your real goal is to get paid for the product or service that you deliver). If you understand all of the steps in this process, and understand how the software will help you to make that process more effective, then you will get significantly more value from the software. In many cases, even when an organization has looked at its business process, they encounter problems. The reason is that when you change business processes, you affect people. It's often been said that people resist change. That is true. People don't want to change if they don't see the value! Why should we? We are comfortable with what we do, we are more efficient when we know what we are doing, and we know how to prevent errors. Give me a new process that I don't understand, I will be less productive and I am more likely to produce errors. Why should I change? OK, some people like change for the sake of change, but we can only take so much. If you wake up one morning in a new house, have to drive a new car and go to a new job, how comfortable are you?
This leads us to the third leg: People. If you don't consider people, you will be less successful. I have seen many software projects that redesigned and implemented processes without involving the staff that did the job. The designs were based on senior staff or management input, and the process was automated to do what they wanted. The problem was that the process was not based on current reality. It was based on old experience (Senior staff and management don't do the day to day job), or on ideas of how things should work. The staff tried to work with it, but had to create all kinds of workarounds to get the job done. This reduced productivity, created frustrations with the staff and made them resent the change. Is there any doubt as to why people resist change? By involving staff in the goals of the change, in the redesign of the process and in how the software can provide tools to improve the process, you end up with a more effective process and less resistance to change.
So there you have it. A stool with three legs: Software, process and people. All three are critical for success.
There are two other elements that you will see on a stool and these are important as well.
- The first is the goal. The goal is to have a place to sit. The seat describes the goal of the project. This goal is a business goal, not a technical one. See yesterday's post for examples of the business goal. It's important that the goal be well understood and repeated regularly. Try sitting on a stool without a seat, if you don't understand. I have seen many stools without a proper seat.
- The second is support. Ever seen a stool without supports between the legs? Doesn't last for long does it? As with the stool, you need support between the legs (Software to people and process, process to people).
The most important thing is Focus. In real estate, they say there are three things that are important: Location, location, location. In IT projects, it's: Focus, focus, focus.
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