From a local morning show, “Good Things Utah”. Actor Vincent D’Onofrio’s sisters discuss Beth’s Method Acting workshops (which Vincent occasionally co-teaches). Incidentally, my “happy place” involves alone time with her brother, Vincent. To see a clip of one of Beth and Vincent’s workshops click here: www.youtube.com To sign up for one of Beth’s workshops, go to www.donofrioe.com

This is a clip from a workshop that actor Vincent D’Onofrio helped teach with his sister, Elizabeth D’Onofrio. If anyone is interested in attending one of Beth’s workshops, please visit her website at www.donofrioe.com To see Vincent’s sisters Elizabeth and Toni, discussing the workshops, click here www.youtube.com

Question: Our company installed our new order management system in the last 30 days. While we spent considerable time educating our users and completing the conversion, I’m concerned that we are learning how to manage our business with the new system too slowly. What should our plan of action be?


At F Curtis Barry & Company we often see that, even a year after purchasing and installing a comprehensive system, companies use maybe 25% to 35% of its potential functionality. Obviously, you’d hope that you’d get much higher use, since companies spend significant capital to purchase and install a new system. Historically, management doesn’t look at how to increase the use of installed systems.


Having implemented order management and warehouse systems dozens of times, what we have found is that it often takes two to six months for the entire organization to make that cultural change to the new system. In the beginning weeks, they act like they’re in slow motion.


The Solution


Your plan of action should be to do a post-implementation audit of all aspects of the conversion and system use. Well after the system implementation, an audit can help increase use of the system. A post-implementation audit will help you confer with the vendor and your people about how to get more out of the system – and make sure users have a complete understanding of the system in areas that have high personnel turnover.


A consultant, an auditor, or a management member can perform the audit objectively. (Keep in mind, there may be some sensitive issues if training or conversion didn’t go as planned.) The audit should include all departments using the system, company management, your IT department, and the vendors. The goal is to consider all aspects of the implementation and obtain answers to the following:


• What is the open list of items left from the conversion?


• What problems is the company having with the new system?


• What people need to be retrained? Be sure all parties understand how to manage your business with the new system (“In the old system I had this, what do I use now?”).


• What doesn’t appear to be working?


• What don’t you understand in the new system?


• Is management getting all the reports and analysis you expected? This is generally one of the major shortcomings.


• Are there some problems left from the file conversion? Data being converted is often not “very clean data”.


Key Departmental Areas


To find these answers, your audit should consider the following issues:


Are there any customer-service impacts that need to be fast-tracked (e.g., order processing, returns/credit processing, abandonment rate, pick error rates)?


Even with a large amount of training, it takes the practical experience of performing daily work for the users to really understand all aspects of how the system is set up and needs to be managed. The company will need to get through the month-end and seasonal processes before you have mastered some systems.


What program problems are there? From the IT perspective, if it’s is a radical change in platform or functionality, how well are they providing system availability? Is the help desk up to speed? Are printers and terminals in the right locations and in sufficient numbers? Are all the interfaces ready for non-daily activities (e.g., printers, merge/purge services, etc.)?


Did the vendors perform their duties in line with the written and verbal agreements? Did the conversion come off accurately? Are there still clean-up problems? In retrospect, how well did they manage the conversion with you? Did you get what you were promised in the pre-sales and negotiations?


In setting up systems today there are hundreds to thousands of software switches that determine the “system personality” and functionality. Are all of these set right? Are there some that need to be reconsidered?


From an integration or interface perspective, these data exchanges are often the most difficult to implement and debug. Are all these inter-departmental systems working correctly?


Order management systems and warehouse management systems have data feeds to accounting and general ledger. Are all the financial aspects of these systems working accurately?


Are there additional operations functions or processes that are needed, or should be investigated, to gain more productivity and to improve throughput?


What program modifications have been delayed and will now be scheduled as a subsequent phase? From your experience with the system, are these modifications and enhancements really necessary, or are there new functions, now that you understand the system, that you can use in their place.


From the perspective of company’s standard operating procedures, are the procedures completed? What still needs to be done, or changed and updated, so that you have a way to educate future employees?


While you’re doing this assessment, go back to your original objectives or feasibility study. Realistically, have you achieved (or will you achieve) the tangible dollar savings promised (e.g., personnel savings, inventory turnover)? Has the company gained the intangible benefits expected (e.g. customer service levels, ability to plan and analyze the business better)?


Create an Action Plan


Once you have completed this survey, you need to circulate the results to all parties and get their concurrence that this audit is in fact a complete list and all the points are valid. Showing the list to everyone, generally often means that the list gets smaller because people will help each other answer things by saying, “Here’s how you can do that,” or “I didn’t find that to be true.”


From this point you should develop an action plan to improve, reeducate, complete conversions, and take full advantage of additional reporting and options that you decided to delay and determine a realistic schedule for further modifications and reports.


Remember that you’re often treading on sensitive territory when you’re talking about individuals and how well they are doing their job with the new system. Obviously, there may be a need for changes in personnel or retraining which need to be shielded from the total group.


After getting concurrence with regard to the outstanding list, the next step is to assign priorities, responsibilities, and due dates to be able to follow up with everyone. Follow up with each management member each week about their assigned areas in order to whittle down the list and get this conversion totally behind you.


After you feel you’ve mastered the basic system, many vendors offer more advanced education in certain specialized topic-oriented to application, report writer, data warehousing.


Use a post-implementation audit to get a considerably higher use of the system in which you have invested and achieve the savings and benefits originally projected.