Over the past decade, businesses generated an unprecedented quantity of patents, products, and profit models. This trend of consistent expansion is accelerating—2015 being one of the most innovative years in history. In order to thrive in this age of explosive growth and competition, businesses must maximize resource efficiency. And, to do this, they must have tools that are in line with the pace of the 21st-century marketplace.

Arguably the most important of these tools is an Enterprise Resource Planning (ERP) software package. Industry leaders consider ERP software the cornerstone of their company’s organizational and operational efficiency. Yet, some business owners and executives consider ERP software cost-prohibitive due to the oftentimes shocking cost of adopting and implementing an ERP package. However, businesses can avoid many unnecessary costs, and significantly reduce their bottom line by following a series of steps.

We detailed these steps in a White Paper and broke it down in a series of articles. In the fourth article of this guide, we will detail how companies should leverage the time associated with training and how they can set up their team for success.
• Article 1 (Chapter 1): ERP Software Selection: Where Should I Start?
• Article 2 (Chapter 2): How to Create A Winning ERP Implementation Team
• Article 3 (Chapter 3-4): Do I Need to Customize my ERP?
• Article 4 (Chapter 5): How Can I Save Money on ERP Training?
• Article 5 (Chapter 6): How To Make Sure You Will Not Miss Your ERP Go-Live Date
• Article 6 (Chapter 7): What is the Executive’s Role in an ERP Implementation?
• Article 7 (Chapter 8): What is the Best Approach to ERP Implementation?

Chapter 5: How Can I Save Money on ERP Training?

Understand the importance of Training

The foundation and success of the entire ERP implementation rest on the end users’ ability to use and navigate the software as it was intended. This not only qualifies user training as one of the most imperative steps in the implementation but also one of the biggest cost implications. ERP firms commonly set aside a specific percentage of the project’s budgeted hours towards training. Depending on the ERP being implemented, courses are usually broken out based on modules and are either priced per course or per user. Although most implementations may include some padding for re-training, it is likely that any formal training courses that are requested a second time will be billed against the project, thus adding to the original cost forecast for the ERP training portion of the project. These unnecessary cost increases can be prevented through preparation, accountability, discipline, and cooperation from the stakeholders and end users of the organization.

Assuming the project manager and implementation lead/super user have agreed upon a granular and detailed project plan, there is usually ample time to prepare for software training courses. It is imperative to request and familiarize the team of trainees with detailed training agendas prior to training. This practice allows for end users to brainstorm topics, determine any missing processes/objectives, and populate lists of questions specifically related to their use of the software. Pointing out unique business situations and processes (and how they will be executed in the software), and initiating conversations between the trainer and other end users will allow the team to come up with proper solutions both in process and software functionality. If these types of procedural and situational inquiries aren’t addressed in training, they will come up after the ERP has gone live, resulting in an influx of preventable support costs.

“Unnecessary costs (like re-training) can be prevented through preparation, accountability, discipline, and cooperation from the stakeholders and end users of the organization”

Prepare Your Team

Another crucial part of the team’s preparation will be to acclimate the end users with the software itself. Most ERP providers will issue licenses and user credentials in the first month of an implementation. This lead time allows trainees to begin logging into the system and exploring screens and modules that may associate with their day to day operational procedures and responsibilities. Getting to know the ‘lay of the land’ will allow users time to adjust to the general look and feel of the software. Often times, if end users are seeing the software for the first time during training, their attention is easily diverted to simply analyzing the graphics, nomenclatures, and all around the design of the software itself—which usually results in a lack of retention in the core subject matter.

One proactive measure the company can take in order to prevent retraining is to demand mandatory attendance for all assigned courses/sessions. As previously discussed, during the implementation, resources and team members experience the burden of a second workload on top of their tumultuous day to day schedule. It is very easy for a resource to justify skipping out on a training class, or stepping away and leaving a course in order to put out a fire or deal with an operational need. Although exceptional circumstances may demand this type of behavior, upper management and key stakeholders overseeing the implementation must make it abundantly clear to all resources that training course attendance is required. If a company makes new hires or does require some re-training during the final months of an implementation, a properly groomed superuser should be able to cover most of the subject matter at that point.

Although the actual training is an integral part of an end user’s adoption and acquirement of the software, documentation will go a long way in preventing avoidable support calls and inquiries—which can add very quickly to the overall cost of an implementation. Most ERP providers can provide customers with generic documentation for at least the basic modules of the platform. The most beneficial and proactive approach to documentation would be to formulate documentation and user guides specific to the company and its standard operating procedures. While generic documentation will help, end users will experience more significant benefits from the documentation that represents the activities and functions performed on a daily basis within the company.

In the fifth article of this series, we will give you pieces of advice to ensure your project follows the estimated timeline.

Over the past decade, businesses generated an unprecedented quantity of patents, products, and profit models. This trend of consistent expansion is accelerating—2015 being one of the most innovative years in history. In order to thrive in this age of explosive growth and competition, businesses must maximize resource efficiency. And, to do this, they must have tools that are in line with the pace of the 21st-century marketplace.

Arguably the most important of these tools is an Enterprise Resource Planning (ERP) software package. Industry leaders consider ERP software the cornerstone of their company’s organizational and operational efficiency. Yet, some business owners and executives consider ERP software cost-prohibitive due to the oftentimes shocking cost of adopting and implementing an ERP package. However, businesses can avoid many unnecessary costs, and significantly reduce their bottom line, by following a series of steps.

In the second article of this series, we will explain how your company can create an Internal Project Team that will minimize costs and keep the entire project on track.

• Article 1 (Chapter 1): ERP Software Selection: Where Should I Start?
• Article 2 (Chapter 2): How to Create A Winning ERP Implementation Team
• Article 3 (Chapter 3-4): Do I Need to Customize my ERP?
• Article 4 (Chapter 5): How Can I Save Money on ERP Training?
• Article 5 (Chapter 6): How To Make Sure You Will Not Miss Your ERP Go-Live Date
• Article 6 (Chapter 7): What is the Executive’s Role in an ERP Implementation?
• Article 7 (Chapter 8): What is the Best Approach to ERP Implementation?

Chapter 2. Form a Strong Internal Project Team

Although most ERP packages are implemented by a team of project managers and consultants, there is a large amount of responsibility, duties, and workload that must be carried out by the client company. Most implementation firms will always offer to fulfill and execute all the work involved with an implementation, but this only adds hours and cost to the project. With the proper team in place, you can use internal resources from each department to fulfill tasks such as data gathering, data scrubbing, data conversion, SOP definition, testing, etc. Assigning the task of data extraction, scrubbing, and migration alone can eliminate a significant amount of hours and cost from the overall project. Additionally, having internal team members perform some of the work involved in the implementation will also serve as practice and training for the end users—which will ultimately result in cost savings for support during and after the implementation.

“Without a properly structured implementation team, bottlenecks, duplication of work, and other communication obstacles arise, usually resulting in cost increases.”

Involve Core Business Areas

Due to their robust nature, ERP implementations require a large amount of input and commitment from everyone (especially department heads) in the organization. The team must specifically plan for additional resources (e.g. time, costs, personnel etc.) that are directly tied to the ERP implementation. These resources will ensure that the team is successful in day-to-day implementation assignments while not compromising standard operating procedures, and will prevent costly issues like overtime, re-work, and setbacks to the timeline. Most companies form a team involving roles for each core area of their business such as project manager, accounting, logistics, purchasing, etc. Teams that are organized have better interfacing between the consultants and the team. Without a properly structured implementation team, bottlenecks, duplication of work, and other communication obstacles arise, usually resulting in cost increases.

Create a Super User Role

One role that can be created specifically for the implementation is the super user role. This team member, usually a manager or key employee, will be involved in every step of the implementation. Additionally, the super user will usually undergo extra training sessions in order to develop them into a subject matter expert in the ERP. Throughout the implementation, the company will be expected to perform parallel testing and hands-on practice inside the software. If the company is equipped with a super user, many of the questions, support, re-training, and other miscellaneous implementation tasks that usually deplete budget hours can be resolved internally. ERP Implementations require extra resources. These resources include organized labor from teams, training for a team lead super user, time windows for practice and ongoing performance feedback.

In the third article of this series, we will discuss a process that takes a toll on most ERP projects and how to avoid it: customization.

Managing a business is challenging and even more difficult with companies in the utility industry. You have a remote workforce, logistics and a work schedule to keep. In addition, there are also things like inventory, sales, and administrative tasks. For a utility business, it is important that all these different areas of the business work together, which is something that an ERP system can be a useful tool for. In the Utility Industry, a dedicated Service Industry Software connects all the dots and gives you a centralized tool to manage business operations. Here are some of the ways Adjutant, ABIS’ flagship ERP is benefiting businesses in the utility industry:

1. The Tracking Capabilities Businesses Need

Tracking how your business operates is important. Adjutant gives you a solution to track all aspects of your business in one location. You will be able to keep track of the logistics, production, inventory and much more from a platform that gives you all this data.

2. All Data Centralized For Better Access And Control

With Adjutant, you will have a centralized location to access all your business data, including sales, production, logistics, human resources, and accounting.

3. More Efficient Business Processes

Adjutant’s centralized and fully integrated planning system will allow you to efficiently manage all aspects of your business, including the ability to combine business data to create reports and charts to better understand the principle functions of your business.

4. Transparency And Control Of Business Data

In business, it is important to have clear data that you can use. Through the use of KPIs and other systems, Adjutant can give you the transparency and control you need to manage your business.

5. Forecasting Capabilities To Make Important Business Decisions

Knowing what to expect in an industry is also important, and our ERP system will give you forecasting capabilities that give you the information you need to make important business decisions and stay ahead of the competition.

Read Also: What is an ERP Software?

6. Improve Logistics Times With Better Data

As a business owner or executive, you do not want clients to wait or have delays due to logistics problems. Adjutant will give you a clear vision of how logistics are working and where changes can be made to improve logistics times.

7. Solutions For Today’s Remote Workforce

With today’s modern workforce, there is always the need for employees to work remotely but that doesn’t stop the need for that information to still be captured into a centralized system.  Adjutant will not only allow you to monitor your remote workforce to ensure work is getting done but also streamline their efforts in the field allowing your team to get more done with less time and mistakes.

Next Step: Pro-Tips to Select and (Successfully) Implement and ERP Software

With a remote workforce that is often in the field and business assets that are often times difficult to track, it is important for utility companies to have an ERP software solution that helps keep them ahead of the competition. Contact us to get the benefits of an ERP software that is designed especially to meet the unique needs of the utility industry.

When I was growing up, I loved The Price is Right. It may have been my favorite show. The combination of luck, timing, and strategy, along with the idea that the contestants were ordinary people, like me, contending for “huge” prizes, was enough to keep me humming the theme song day in and day out. There was one particular game that stood out to me: The Race Game. In The Race Game, a contestant was shown 4 different household items and four different prices, and then asked to match each price with its corresponding item. They had 45 seconds to do this. Once they were done, they could pull a lever down and lock in their prices. If they locked in all the correct prices, the contestant won a new car. If not, a buzzer would ring and they would have a small amount of time to go change around their match-ups. Here is the kicker—the contestant was not told which items were correct, and they only had a few chances (and limited time) to make changes. This is probably why I enjoyed this particular game—the unknowns, the pressure, the guessing—these made the game more thrilling and exhilarating, for me as a viewer. But can you imagine how hectic and nerve-racking this must have been for the contestant; you have somehow been selected out of a huge pool of potential contestants, earned your way through the “One Bid” round, and now you have the chance to possibly win a car. But with each lock in, and each dismal buzzer, you have no clue if you are one match up, or 3 match-ups away from losing that car. You have no idea if you are on the right track, if you have done anything right, what you are missing, where you are wrong—you just know that you have failed at the end goal.  I vividly remember seeing the frustration on contestants’ faces when that buzzer went off. They must have agonized: “What did I get wrong?!”

I’ve seen this same exact exasperation in organizations that lack proper feedback.

Psychological scientist and management experts agree: feedback is likely the most important aspect of management. Feedback drives performance, enhances professional development, increases organizational efficiency, and, when delivered in the appropriate form, enhances employee work satisfaction. And yet, according to a recent survey conducted by PwC, less than 30% of employees receive consistent feedback from peers and managers. So, what gives? Why are we so afraid of providing feedback? Is it that we are catering to a more sensitive generation? Is it that we are afraid to have those tough, scary, honest conversations? Is it because we know that, in many circumstances, our subordinate’s failures are in part our own? Do we as managers and team members care more about staying in our comfort zone than creating a thriving team? Has feedback been placed on the back burner because there are simply “more important things to do” as a company? Regardless of the reason for avoiding feedback there is tremendous evidence that, in its absence, there are dramatic negative effects on professional development, relationships, and organizational functioning.

Do we as managers and team members care more about staying in our comfort zone than creating a thriving team?

The truth is, when executed properly, feedback can be the most rewarding and beneficial asset to both individual employees, management, and the organization as a whole. Most of the top performing companies in the world got that way through self-realization, self-examination, and adaptation. When things go wrong or fail, or even if we just fall short, it is crucial to analyze our process, methods, attitudes, and performance- and we do so through feedback.

Here are some of the key ideas the best leaders and organizations remember when they practice feedback.

Figure Out the Why

In order to get the most out of a feedback process, it is important to understand why we give it. The basic and fundamental goals of providing feedback are to:

•   Affirm strengths and capitalize on wins

•   Point out areas of weakness or areas to improve upon.

•   Assess the team member’s ability to fulfill their role and responsibilities.

•   Evaluate progress towards goals.

•   Determine the team member’s impact on others.

Although these sound obvious, without a proper feedback model, most organizations are in the dark when it comes to these basic areas.

When you consider that most of these serve to assess the employee’s fitness and overall employment, it is surprising that we would ignore conversations and communications about them. When a team member is terminated, or voluntarily leaves, it is generally a result of their inability or poor standing in one of the areas above. In the case of a struggling employee, you are failing as a manager if you do not consistently provide feedback in these areas.

The benefits are not solely limited to situations where improvement is needed- it also serves to build and capitalize on team members who are strong performers. Recognition of a job well done continues to be one of the biggest motivators in the workplace. When people do well, they want to hear about it, it is human instinct. In fact, a recent study by Gallup found that almost 70% of employees say they would work harder if their hard work was recognized. This solidifies the notion that, when we do not provide feedback as managers, we are not only missing out on correcting and improving current weaknesses, but also failing to build on the qualities and wins of our best people.

Delivery and Execution

An organization that does not provide feedback is setting itself up for failure; however, an organization that provides feedback in the wrong form, or at the wrong time, can be just as much at risk. It is important to remember that how you give feedback is just as important as whether or not you give it, and this is especially true for corrective feedback.

When leaders provide feedback, the number one thing you can do to prepare is check your emotions at the door. Having a bad morning? Drained from putting out fires? Feeling overwhelmed with family issues? Frustrated with a customer issue? Do not let outside issues poison your feedback model. When you provide a team member with feedback, it is about them- do not let outside issues influence your interactions with them when discussing their progress, performance or attitude.

Another key element of an effective feedback model is specificity. Remember, the goal of providing feedback to our team members is to help them grow, learn, and succeed in order to produce very specific results. Instead of telling a direct report they need to “communicate better”, point out precise examples where communication was lacking. I try to follow a simple model:

 •  What is the action?

    •  What are the consequences of the action?

    •  How can it be changed or corrected?

By pointing out specific occurrences and actions, there are no assumptions or doubt about what action is being discussed. Being specific in your feedback decreases subjectivity and speculation, which helps team members to understand the facts. It is also imperative that you point out specific consequences of the action, both good and bad. The employee needs to know the effects, both direct and indirect, their actions have on you as a manager, the company, and the employee themselves. Lastly, and most important; offer a solution or corrective measure for the team member. Simply pointing out issues, defects, or behaviors does not fulfill your role as the manager. It is your job to ensure team members have the tools and solutions necessary to succeed. By offering a solution or corrective action, you are fulfilling the role of a leader, rather than just a boss.

Another key aspect of executing proper feedback is effective listening. Especially in situations where negative feedback is being provided, it is crucial to allow the team member to explain or discuss their point of view, or their side of the story. Leaders who listen to their people can instill trust and transparency in their relationships, which helps to build and propagate loyalty. Often you will find that listening to your direct reports will provide an alternate point of view—one that may help to explain, diagnose, and eventually correct behaviors or actions in need of adjustment.

“Leaders who listen to their people can instill trust and transparency in their relationships, which helps to build and propagate loyalty.”

The When and Where

I have read a lot of management books. I have been to many management trainings, attended lectures, and been exposed to various types of management in different organizations. One practice that I confidently disagree with is the annual performance review. My distaste isn’t derived from the effort it takes to put together reviews for all direct reports (usually at the busiest time of the year); and it is not the amount of meetings and resource allocation that is drained. I simply do not like them for one reason: they are ineffective.

Imagine you manage a team member who is great at what she does, the clients love her, she brings in a fair amount of revenue, but she seems to be careless when it comes to the grammar of her emails. Or maybe you have someone on your team who is very committed, great with data management, extremely organized, but lacks in accounting skills (something that he really needs to be at his highest potential).

If you operate under an “annual review” feedback basis, and you somehow carelessly neglect the feedback process the entire year, how will these employees know there is anything wrong? Furthermore, are you ok, as a manager or an organization, with letting sloppy, unprofessional, negative behavior or actions continue to happen for up to a year before pointing them out? Annual performance evaluations proverbially bottle up emotions, and they allow problems, attitudes, and behaviors to fester.

Instead, feedback should be given ALL THE TIME- in meetings, in weekly one-on-ones, in emails–as often and continuous as possible. It is important, however, to understand the sensitive nature of negative feedback and its effect on morale and confidence (if provided in an improper setting). While I believe giving affirmations and positive feedback in front of a group carries many benefits, I would never offer negative feedback to a direct in front of his/her peers. It is important to be very prompt in your feedback– regardless of the nature. When instances and experiences are fresh in the minds of a resource, they are much more likely to accept, understand, and capitalize on the feedback based on these occurrences.

For those of you in the supply chain industry, you could compare this continuous feedback model to an inventory cycle count. Traditional physical inventories are done once or twice a year. Plants usually shut down completely for 2-3 days, and employees perform a count for the entire warehouse. Not only does this have dramatic effects on labor cost, but production (thus revenue) takes a hit during the shutdown as well. Additionally, because the counts are so far apart, the possibility of inventory variance, inaccurate counts, and other substantial issues are dramatically increased. By performing cycle counts once a month, organizations keep the inventory counts fresh and accurate, while avoiding the drain on time and resources (as well as production shutdown). So, by providing feedback to your team members constantly, rather than a few times a year, allows for more communication and discussion with your directs, and translates into increased opportunity for growth, improvement, and success.

Regardless of where and when you deliver the feedback, another essential piece is to remain consistent with your feedback- both positive and negative. If, in the past, you have chastised certain behaviors or actions– it is imperative that you do not make exceptions for these situations due to variables such as mood, resource, current company health, etc. For instance, let’s say you have made it clear to a team member that being late is unacceptable. You have had several discussions concerning this behavior and it is understood. A couple months later, one of the more senior team members starts coming in late, but nothing is mentioned. This type of scenario breeds resentment and distrust. These types of inconsistencies in feedback will likely result in even more issues than you originally started with.

From Every Direction

Most of the time, when feedback is discussed, it is in the context of a manager providing feedback for one of his/her team members. But this brings up a good question—if we are passionate about providing employees with feedback and solutions (from a different point of view) in order to help them change for the better, shouldn’t we be asking the same from them? Feedback is not a one way street. Every organization should actively engage in feedback up the ladder, down the ladder, and unilaterally in order to provide the most comprehensive analysis of managers, team members, and peers.

One of the things I try to do on an ongoing basis is ask my team members for feedback. I value each and every one of my directs—and I rely on them on a daily basis (just as they rely on me). At my company, we hire passionate and intelligent people—only the best. We do not hire team members of this caliber to have them sit and be quiet. Their ideas, innovations, pushbacks, concerns, and visions are not only welcomed, but EXPECTED. This includes constructive discussions on our relationship, and my management. The only way that I can get better as a leader is to ensure my team is getting everything they expect out of me, and more. Hiring smart people and ignoring their ideas and feedback is like buying a Ferrari and letting it sit in a garage. Something that I have had to get better at is taking in feedback from my team without getting defensive. What I have found is this; if you trust your team, and they trust you, the mutual feedback process is ultimately built on each party’s desire for the other to improve, and ultimately succeed.

“Hiring smart people and ignoring their ideas and feedback is like buying a Ferrari and letting it sit in a garage.”

One of the most controversial topics in this arena is peer to peer feedback. If performed correctly, peer reviews can be very beneficial for a team’s growth and success. If you do plan to initiate peer reviews, it is best to go with a structured method of feedback collection, such as the 360 feedback surveys. By providing proper dialect around the meaning and purpose of these reviews, along with assuring their anonymity, most team members are able to understand the value of the exercise, and generally will end up taking away valuable feedback. However, other forms of unstructured peer feedback have a history of spurring resentment, malice, and distrust among team members. It is crucial that you supplement any form of peer review with a thorough background discussion and proper format and execution.

We have discussed feedback from the top, and from below, as well as lateral feedback. This leaves the most significant form of feedback an organization can receive: CUSTOMER FEEDBACK. I could easily write a book on this, so I will save that for another piece; but know, that if you are not having honest and blunt conversations with your customers about your relationship, product, service, delivery, and overall status with them—you are doing it wrong. Most customers will be honest with you if you ask. In fact, most of your customers are likely stewing in their complaints silently; according to a recent study, for every customer who bothers to complain, 26 other customers remain silent. The onus is on the organization to reach out to the customer and ensure they are being treated properly and expectations are being met. And the best part about this process—most of the customers will respect and appreciate the mere act of checking in on them.

“If you are not having honest and blunt conversations with your customers about your relationship, product, service, delivery, and overall status with them—you are doing it wrong.”

As companies continue to improve and innovate, standing out amongst the crowd will be vital to winning and onboarding unique and passionate talent. Adopting and perfecting a structured feedback model for your organization will help secure one piece of the puzzle. Do not be the company that leaves your people “fearing the dismal buzzer”.