SAP ROI — Enterprise Architecture & Business Solutions

Strategic SAP & IT Program Development for Measurable Business Value

Effective Results from SAP Project Managers – SAP Program Managers

July 18th, 2011
SAP Project Success

SAP Project Success

In all the years I’ve been involved with SAP I’ve often puzzled about what makes a really good project rather than some of the freak shows they call SAP projects.  After involvement in over 20 SAP projects I’ve seen a few of them go really well, a few that were more like horror shows, but most were mediocre.  I’ve often asked myself “Why?”  What makes the difference between a good project and one that is nothing short of a mess?

One key item that stands out is project management.  Even with the most talented and dedicated resources bad project management can ruin an otherwise great SAP project.

 

I don’t blame client project managers because if they had all of the resources they would not need outside help and guidance.

 

Before I get into this, let me define what I consider a “good” project.  A good project is one where there is a lot to do, but the stress level is not intense.  The timeline may be tight but it is achievable (maybe a little bit of a stretch).  The project is delivered on time, on budget, within scope and the result is high quality (a fairly smooth transition without a chaotic go-live).

Methodology Considerations for a Good SAP Project or SAP Program

The list below is from a synthesis of materials from SAP’s ASAP methodology, the PMI (Project Management Institute), and my personal experience over the years.  Much of this is contained in the SAP ASAP methodology in one form or another so you really have to wonder what any consultant is following if they claim to use it and these items are lacking.  In fact the latest ASAP Methodology version 7.1 includes a project start-up checklist to ensure key components are addressed.

Unlike several years ago when contract project managers had to rely on experience alone – the SAP ASAP Methodology is well-proven and mature today.

There are several key characteristics of a well managed SAP project which includes:

Early SAP Project or Program Management Activities (Before the Overall SAP Project is Fully Underway)

  • Success criteria defined and communicated for the project.
  • One of the first things that is defined for the project are the key roles, responsibilities, and tasks that will be performed by each participant group in the project.
  • A clear, definitive project plan with WBS elements, networks, and activities planned for every major work-stream throughout the entire timeline.
  • A clear list of deliverables, milestones, templates, and instructions on their usage are provided for the entire project.
  • Deliverables are clearly tied to project value rather than useless administrative exercises (value added activities) (see SAP System Vendor Project Success Criteria & Factors 1 scroll down to Sections 8 and 9).
  • Scope, time, issues, risk, cost, communication, and integration management plans, together with additional key components are defined.
  • Various standards for the project are defined and documented, including but not limited to business process, development, configuration, enhancement, transport management, testing, etc.

If you are using outside contract project management resources and  these items are not substantially in place by the time you start your project you will likely have your timeline and budget destroyed.  Along with the blown schedule and budget your project will also be a pressure cooker filled with stress, anxiety, and frustration. These are also characteristics you find when an SAP project manager or SAP program manager is not qualified.  The chaos, tension, stress, and confusion caused by their inability to coordinate the many moving parts of the project are a direct result of their lack of experience and ability.

I don’t blame client project managers because if they had all of the resources they would not need outside help and guidance.

The project should be delivered on time, on budget, within scope and with high quality…

Conclusion on Effective SAP Project or Program Management Practices

You are headed for a project disaster when a contract SAP project manager or SAP program manager fails to ensure the following items are in place early in the project:

  • responsibilities by group and role are defined,
  • deliverables are well laid out,
  • templates are properly prepared,
  • forward looking expectations are set,
  • coordination occurs between all project groups,
  • etc.

I’ve only ever been on a few projects when the SAP project manager or SAP program manager failed to produce a properly detailed project plan.  Every one of those projects had one thing in common, they were absolutely horrendously stressful, difficult, and took more time and cost more than necessary.  Along with the failure to produce a proper project plan the lack of proper deliverables, proper roles and responsibilities, and all of the other things a good project plan would help you define were also missing.  If this happens to you FIRE those contractors, you are being bled dry and are headed for a budget and timeline disaster.

For much more detail on what happens when you have bad contract SAP project managers or SAP program managers see the post Some Reasons SAP Projects are Over Budget and Over Time.

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Steering Committee Governance for an SAP Center of Excellence

July 11th, 2011
Business to IT Convergence with an SAP Center of Excellence

SAP Center of Excellence Governance

This post is based on information from my recent ASUG presentation in Atlanta…  Beyond Technology Alignment – Building a Center of Excellence @ http://bit.ly/jJefxP

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At the intersection of business and IT you have convergence.  At the place of convergence is where the Center of Excellence exists.

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One of the key SAP project success factors is to use a steering committee made up of key business stakeholders.  They can meet once a week or once a month, but generally they are involved to provide business level guidance to an SAP project or IT programs.  The most effective steering committees include at least one executive and several senior leaders from throughout the business (see The Real Reason Executive Participation Creates IT Project Success).

That steering committee performs a critical function over large projects like SAP implementations.  This group is critical to your project’s success because of the amount of time from company employees, capital from the organization’s coffers, and decisions which change the business.

Some of the key functions a steering committee carries out during the course of your SAP project include:

  • Set SAP project scope and then help manage it.
  • Define project objectives and evaluation criteria.
  • Monitor project progress, including key milestones and deliverables progress.
  • Oversee Quality reviews at key check points.
  • Evaluate and mitigate organizational impact of business changes.
  • Promotes the project throughout the organization.
  • Coordinates staffing and resource levels from key business areas.
  • Makes critical decisions which the project team is unable to resolve (escalations or key business decisions).

The ongoing functions and tasks of the SAP steering committee cannot be underestimated. During the course of their duties they gain that list of unique and critical skills related to applying technology to business issues and problems (see Using Your SAP Steering Committee for Business Transformation).

You go live and WHY do you disband your steering committee???

Integrating the SAP – IT Organization Into the Business

In an SAP Center of Excellence, after your SAP implementation goes live, the steering committee functions change to one of developing and managing technology road-maps.  Their skills with scope, schedule, cost, performance, prioritizing, and evaluating risks / rewards are ideally suited to their continued involvement in the application of technology to the business.  But the underlying issue here is that they must continue to function –, they should not be disbanded.

One of the key benefits of continuing to leverage the SAP Steering Committee after the SAP business software goes live is you continue to build on their experience and unique skills.  Even as they rotate out of the steering committee role these individuals move through the ranks of the larger enterprise and take that technology to business integration experience with them.  If they have served on a steering committee long enough to see the benefits technology can bring to the larger enterprise their exposure is invaluable to building a long term Center of Excellence –, an organization dedicated to converging business and technology to meet business marketplace requirements.

These individuals have worked through many key business decisions, budget decisions, scope and schedule decisions, and how to move to technology integration project success.  As a result of their experience applying technology solutions to the business they develop critical skills for the converged and integrated organization, these skills are difficult to replicate.  In a nutshell this steering committee develops a convergence of three critical skills for tomorrow’s powerhouse enterprises: they understand management, technology, and business integration.  Those are the key ingredients to the converged SAP enterprise.

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3 Keys to Reduce SAP TCO & Move to SAP ROI

June 26th, 2011
Building an SAP Center of Excellence

SAP Business Convergence

I only have a couple more posts in my series on overcoming vendor sales tactics so I thought I would provide a brief distraction and look at a few key areas for SAP organizations to move to “excellence.”  This post focuses on some of the considerations for SAP Total Cost of Ownership (TCO) and SAP Return on Investment (ROI).

One key to achieving SAP ROI is through convergence or integration of the SAP staff into the business.  I’ve started down this path as part of a follow-up to the recent ASUG Atlanta conference presentation I did on “Beyond Business to IT Alignment – Creating Convergence in the SAP Enterprise.”  Those materials are now available online.  The first part of them consists of a two-piece resource kit, and the Roadmap Builder, can help to transform your enterprise and business prospects.

Preparing the SAP and IT Organization for a Center of Excellence

This post will provide an overview of ways to achieve business benefit, reduce costs, and achieve ROI.  While I would like to go into detail for each of these components it is best to leave them in a list format.  To expand on them would create a 20 or 30 page document.

Your goal is to drive business innovation and marketplace differentiation

So, to keep things simple I will condense this down into a bullet-point list covering the 3 key topic areas of

1) Engaging the Business,

2) Reducing Complexity, and

3) Delivering Excellence.

The SAP Organization Must Engage the Business

  • Converge IT and Business efforts
    • Regularly convene a senior business representative steering committee
    • Facilitate business and IT planning sessions
    • Use business resources to help manage the project
  • Develop dotted line IT staff to business organization relationships
    • Assign one or more IT staff to each business area
    • Have IT / SAP resources work in the business areas on a regular basis
    • Ensure they perform some of the routine tasks in the business area
    • Develop improvements, solutions, or ideas in conjunction with business users
  • Create Service Level Agreements (SLAs) for post production activities
    • New feature or functionality requests
    • System performance and uptime
    • Issue escalation and resolution
  • Build Technology Solution Roadmaps
    • Define and prioritize technology requests
      • Need
      • Want
      • Market impact
      • Strategy impact
      • Business area(s) impacted
    • Perform cost / benefit analysis
    • Evaluate alternatives

The IT and SAP Staff Must Reduce Complexity

  • Consolidate
    • Hardware
    • Applications
    • Network infrastructure
    • Application delivery infrastructure
    • Interfaces
  • Decommission legacy systems
    • Reduce license management
    • Reduce technical support costs
    • Reduce interfaces
    • Improve data consistency
  • Reduce custom solutions – clear custom development

The SAP and IT Organization Need to Deliver Excellence

  • Lean implementation
    • Use SAP Solution Composer
    • Use SAP Solution Manager
    • Employ ASAP methodology
    • Leverage vendor templates where they are useful
  • Optimize performance
    • Make use of automated batch jobs for repetitive transaction tasks
    • Use performance and monitoring tools
    • Create additional database indexes where useful
  • Use QA processes to ensure Quality results
    • Ensure all project code is QA checked
    • Perform project QA’s at key milestones
    • Ensure deliverables are complete and useful (if they are not value added they are a waste of time)
      • An example of a wasted deliverable is something that serves only administrative “reporting” functions.
    • Ensure testing is thorough and challenge testing is performed
  • Employ proper IT Governance Principles
    • Ensure proper standards are created and then followed
    • Evaluate, review, and escalate as necessary
    • Ensure key decisions are time bound
    • Be prepared to transition to support at go-live
    • Create issue and risk management processes
  • Ensure knowledge transfer
    • Make sure that company IT or business staff can support the solution
    • Ensure end user training is thorough
    • Send IT or business support staff to SAP courses (pay now or you will pay far more later)
    • Use post production learning and improvement sessions

Conclusion on Reducing SAP TCO While Realizing SAP ROI

Customers who are either considering or undergoing an SAP project must perform due diligence to ensure they get what they are paying for.  Not only do you have to evaluate cost savings, but the cost of ownership (software, ongoing support, and maintenance costs).  Together with that it is important to ensure you get some business value from your SAP investment.  More than just promises it is important to define, develop, and then measure success criteria after the SAP implementation.

To make things even more complicated your SAP and IT support staff must work to become directly integrated into the business.  Your goal is to drive business innovation and marketplace differentiation.

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