Saving Private Ryan or Again About ROI
Project manager John Miller gets a hard task. Together with his project team, Miller must go into the depths of his organization in search of employee James Ryan, about whom they say that he instantly adapts to any new information system and immediately begins to apply new ways of working. The management of the organization decided to find Ryan and use it to reanimate the project to introduce a new information system. But in order to achieve a return on investment, the project team will have to go through all the circles of hell ...
I remember the old IT bike about how an ERP system was implemented in one metallurgical holding. At some point, the project’s resistance to such a level that the CEO sent a letter to all the company's employees with something like the following: “Dear colleagues, you, of course, can not use the new software in your work, but then you will not work with us ".
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Why this example? When a conversation is started on the introduction of a new information system, there is talk of returning investments. In his book “ What does the business want from IT ?” Terry White showed that all the benefits from using the new system, as well as all the costs of its implementation, can be converted into money and determine the payback period and profitability of the project. Approximate alignment presented in the figure.
But, in my opinion, when advocates of a new project consider ROI, they lay down a number of assumptions in the model aimed at demonstrating the most ideal situation in terms of return on investment terms. I see three such assumptions:
What is the result? It seems that even such a super-obligatory thing as an ERP system may experience tremendous resistance from personnel when implementing and reaching a point of payback in an obscure future.
I bow my head to those who evaluate the above aspects and immediately put them into the project. To those who have not yet done so, I propose to include these aspects and work to ensure that users 1) learn about the innovation in a timely manner, 2) find the value of the innovation for themselves, 3) learn the new system, 4) apply the new way of working and 5 ) formed a new habit . Without this, the long-awaited moment of return on investment from the information system may never come.
All this work requires a massive and rapid exchange of information throughout the organization: explaining ideas from management to personnel, informing about a project from a project manager to a project team, teaching a new product from a project team to users, problematic issues from users to a project team, objections from users back to management, management responses to user objections, success stories from management to the entire organization, and so on and so forth. For such tasks a conference room is ideal, which can accommodate all participants and users throughout the entire project. Alas, this is not the case in life, so when introducing information systems, and generally within every kind of organizational development , you can use an alternative and cheaper option - the corporate social network. Because it is a dimensionless virtual meeting room for everyone to communicate with almost everyone, with access 24 to 7, in any convenient place of stay of the user.
But the corporate social network is not a patch. All of the above applies to herself. In order for employees to start using the new virtual “negotiation”, you also need to make certain changes in the organization, you also need a separate project. And those organizations that took this seriously and really established a broadcasting, social, network information exchange, are more likely to succeed in their development. And reach it faster.
Ps. We will assume that with this article I fulfilled my promise to complete a cycle of notes about corporate social networks and return on investment (see part 1 , part 2 , part 3 , part 4 ).
Vladimir Ivanitsa Facebook | LinkedIn
I remember the old IT bike about how an ERP system was implemented in one metallurgical holding. At some point, the project’s resistance to such a level that the CEO sent a letter to all the company's employees with something like the following: “Dear colleagues, you, of course, can not use the new software in your work, but then you will not work with us ".
')
Why this example? When a conversation is started on the introduction of a new information system, there is talk of returning investments. In his book “ What does the business want from IT ?” Terry White showed that all the benefits from using the new system, as well as all the costs of its implementation, can be converted into money and determine the payback period and profitability of the project. Approximate alignment presented in the figure.
But, in my opinion, when advocates of a new project consider ROI, they lay down a number of assumptions in the model aimed at demonstrating the most ideal situation in terms of return on investment terms. I see three such assumptions:
- Users instantly adapt to the new system. In fact, in the example above, and almost always, at the beginning of the project, users resist change. But even after you have convinced them, with a purely kind word or a kind word and a revolver, people do not immediately master the ways of working. They spend long hours at trainings, courses, or simply try to take the first steps in the system. And in general, they are not trying to quickly master the new system and start using it.
- Users use 100% of the functionality of the new system. This is also not the case. For example, according to this report, the efficiency ratio of using ERP systems in Russia is 81%. Specifically, with the ERP systems, this is probably close to the truth, but in general, I would rather believe in the rule that users use only 20% of the functions inherent in the software. I remember the statistics of the perception of new knowledge after passing the classic training, that is, training, when you are taught a couple of days, then the coach leaves and no one bother with how much you have mastered the new competencies. So, of the total volume of material, 20% is remembered, and only 5% is used. It turns out that you need at least a few iterations so that users reach at least 20% of the average.
- Users apply the new system in accordance with the underlying idea. In fact, it is the belief that information systems themselves have a competitive advantage. But even if users learned the new system, they still have to change the way they work so that the business results from the use of the new system become realized. For example, in the framework of our recent project to introduce a social portal, my colleague individually taught the head of the department for two days to use Jive . After that, he went to a group of fans of ping-pong and skillfully applied the skills there, and the department continues to work in the old manner.
What is the result? It seems that even such a super-obligatory thing as an ERP system may experience tremendous resistance from personnel when implementing and reaching a point of payback in an obscure future.
I bow my head to those who evaluate the above aspects and immediately put them into the project. To those who have not yet done so, I propose to include these aspects and work to ensure that users 1) learn about the innovation in a timely manner, 2) find the value of the innovation for themselves, 3) learn the new system, 4) apply the new way of working and 5 ) formed a new habit . Without this, the long-awaited moment of return on investment from the information system may never come.
All this work requires a massive and rapid exchange of information throughout the organization: explaining ideas from management to personnel, informing about a project from a project manager to a project team, teaching a new product from a project team to users, problematic issues from users to a project team, objections from users back to management, management responses to user objections, success stories from management to the entire organization, and so on and so forth. For such tasks a conference room is ideal, which can accommodate all participants and users throughout the entire project. Alas, this is not the case in life, so when introducing information systems, and generally within every kind of organizational development , you can use an alternative and cheaper option - the corporate social network. Because it is a dimensionless virtual meeting room for everyone to communicate with almost everyone, with access 24 to 7, in any convenient place of stay of the user.
But the corporate social network is not a patch. All of the above applies to herself. In order for employees to start using the new virtual “negotiation”, you also need to make certain changes in the organization, you also need a separate project. And those organizations that took this seriously and really established a broadcasting, social, network information exchange, are more likely to succeed in their development. And reach it faster.
Ps. We will assume that with this article I fulfilled my promise to complete a cycle of notes about corporate social networks and return on investment (see part 1 , part 2 , part 3 , part 4 ).
Vladimir Ivanitsa Facebook | LinkedIn
Source: https://habr.com/ru/post/294956/
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