ERP Operating Group - A loose approach

Implementing best practices that work together to allow our ERP experience to be proactive and successful. Since I am planning to scope this project for 10 years with a sustainable business model. I believe setting up a core operating group is the first step. However, with everyone so busy operating day to day, it does provide many challenges. I know Justin in the past has brought people together to have information and idea sharing sessions, especially during the Plex'es between all the various prairie scenes. Unfortunately, it never migrated past Winnipeg into the East. This of course is not fault of anyone, just geographical distances and how life navigates us year to year. I'm hoping to close that gap a bit. When there is a going concern for all the scenes, sharing one vision and required to interact on a business operating level, we have no other choice then to find the time to resolve issues.

Enterprise resource planning (ERP) programs are much more than the software brand that runs them — they can be the foundation of business success. Effective ERP programs start with a governance structure of processes and controls, fueled by an overall continuous process improvement mindset.

Best practice No. 1: Institute an ERP operating group
This is a good opportunity to take a step back and look at your ERP organization. If it was cobbled together over time (as most are), then this is the time to reorganize. A best practice is to form an ERP operating group (ERPOG) made up of business process owners and technical leaders who manage all initiatives and priorities. Successful ERPOG win themes include:

Consensus — A collective voice for all ERP issues and strategic goals
Efficiency — Suggestions for improved business process efficiencies
Visibility — Improved visibility to process metrics and critical information
Oversight — Commitment to best practices and process improvement opportunities

These win themes are enabled by critical functions:

Reporting — Report critical business information and metrics to the executive steering committee.
Project prioritization — Prioritize all improvement programs and projects. All initiatives cannot have the same priority.
Project status — Provide regular status updates of programs and projects.
Issues management — Expedite issues management, escalation procedures and resolution.
Implementation/release management — Methodical implementation of new ERP functionality.
Change management — Structured environment change control.
Software modifications — Review and evaluate additional software components required to support system health.
Change evaluation — Review and evaluate the integrated impacts of change.
Communication strategy — Establish communication between the business process owners and the functional area leads, subject matter experts and business analysts.
Recommendations — Provide operational recommendations to the steering committee.
IT oversight — Integrate IT into the overall process. Use technology as a service to enable the business.

A strong and well-managed ERPOG will serve as the foundation for successful ERP program management. ERP is a way of doing business, not an IT system. Technology services should be a part of the process and enable and support business decisions, but the business should own the ERP.

There are two other, the link below will provide the full reference article. The point is to look at forming some kind of operating group to manage those points above.

Best practice No. 4: Utilize metrics
Defining and actively using metrics or key performance indicators for every business process area is another best practice. Each process area needs metrics reported by the process owner in the ERP organization. These analytics are reported to the executive team and evaluated at defined intervals. Metrics should reflect the organization’s goals and they should be SMART — specific, measurable, achievable, realistic and time-bound. As Peter Drucker famously said, “If you can’t measure it, you can’t manage it.”

Managing your business with metrics works hand in hand with the ERPOG to reduce the number of decisions that are based solely on instinct or gut feeling and enable decisions based on objectivity and facts. These clear and factual views of business performance are seen on a continuous basis. Metrics drive execution and process improvement, while helping you closely monitor the results of action or change.


7 keys to successful metrics

1. Reflect the organization’s and process area’s goals and keys to success
2. Measure process performance effectiveness or efficiency, including changed conditions or problems
3. Monitor reliably, repeatedly and accurately
4. Limit the number
5. Encompass the entire process collectively
6. Support with high-quality data
7. Address pain points

Establish a sound ERP organization with business process ownership and accountability.
Implement disciplined master data management practices and protocols.
Manage releases diligently.
Use metrics that drive business performance.

With these key best practices, you can create strong ERP governance that will help you use your platform effectively, with an increased focus on the strategic objectives of your business. All of these best practices work together to allow your ERP experience to be proactive and successful.

So a ERP Operating Group will be loosely formed, given the constraint of life is what I current observe in all our operating scenes.

Reference:
http://www.grantthornton.com/issues/library/articles/advisory/2014/BAS-ERP-governance.aspx