My lecture at the ERP.ORG conference in Kfar Maccabiah – a customer story about an organizational efficiency project through the improvement and optimization of the organization’s information system.
How do you start such a project? And what is its goal?
In recent years, I have encountered more and more organizations that are open to and want to carry out efficiency projects.
What is an efficiency project? The idea is to carry out a project with the purpose of initiating or proposing projects that bring value to the company, or in other words, to do things in a better way.
It is not easy to decide on an efficiency project.
How to decide on an information system project
In most cases, a need arises from the field, and then a solution/answer is given to it, whether in the form of adding another information system, upgrading the existing system, by automation or by other information system projects.
But an efficiency project works completely differently!
The organization decides to put its trust in someone (usually an external consultant) who will learn about the organization and walk around it, and then suggest what projects they think should be carried out.
Why is it so difficult?
There are many reasons as to why it is difficult, mainly because of the following kinds of barriers/concerns:
- How is it possible that an external consultant who doesn’t know my company knows about my company’s needs better than I do?
- I have many very unique issues in the company that an external consultant will not understand.
- What kind of project is it to just make a list of required projects?
- I am paying for a recommendation of projects, I don’t end up having an actual product that can be used.
- I have such a long list of projects I need to do.
Why do organizations still choose to carry out such a project?
- An external source can actually know your company’s needs better than you do. A person who knows many companies has a broad view of processes in other organizations, has the ability to point out illogical or cumbersome processes. They can identify a system that does not provide a solution for the organization and are familiar with existing solutions in the market for any problems arising in the organization.
- Each company is unique, but a simple and correct implementation is finding how a product can be used as it is, and defining development and changes only where they are really required.
- Preparing a list of projects that can bring value to the organization is like building a really good work plan, one that will make the organization invest in the right projects for the organization’s development.
- An organization that decides to conduct a real and honest test to determine which information systems projects are really necessary for it may discover positive surprises and high values in projects that are really possible and applicable.
- There is always a long list of projects that need to be carried out, and you always have to choose and prioritize them, so ideally the prioritization is correct, and that a project that is carried out will indeed bring the desired value to the organization.
Why is an external consultant required?
“An outsider sees every fault”. Know this saying?
A visitor to many homes quickly recognizes their defects.
In most organizations, the knowledge is at home. The employees know best – where time is wasted, where it is possible to save and become more efficient, what the recurring errors are. It’s just that no one asks them any of these questions, it’s not their job and sometimes they don’t think they’re expected to think about these issues, or worse – bring them up.
The departments in the organization that request information systems and efficiency projects are usually those that are staffed by someone who has worked elsewhere, has seen more efficient processes, is motivated and has a desire to push for improvements, but these people do not exist in every department and every organization.
An external consultant is not influenced by familiarity with the history of the employees, they are detached from organizational politics.
Therefore, when a consultant addresses the employees and asks them to talk about the problems, and to take part in thinking about the organization’s efficiency, the consultant serves for them as a convenient and objective body, which makes the employees feel like they are part of a process, come up with ideas, and become the best project initiators for the organization.
So what’s left for the customer to do?
Decide that they want to open their minds, allow the consultant to learn and propose the projects that will really advance the organization, give strong management support to the process, free up the employees and emphasize the importance of the project and cooperation.
And most importantly – after receiving the list of recommended projects, set priorities – and start executing!
