Preparing for and Surviving a Procurement Software Implementation

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• Preparing for (and Surviving) a Procurement
  Software Implementation

Presented by Debra Carrejo, CPPO,
CPPB Purchasing Manager City of Arlington, Texas
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General Information

• Most financial software systems on the market
  today are comprehensive in nature incorporating
  multiple integrated modules.
• Examples Lawson, SAP, PeopleSoft.

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Integrated Modules

• Robust financial software often coordinates the
  functionality of
• Purchasing Inventory Control
• Accounts Payable/Receivable
• Asset management/Warehouse
• Financial/Accounting

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Integrated Modules (contd)

• In some systems, ownership of the procurement
  module also means ownership of the inventory and
  AP functions.
• A disconnect can occur when these functions are
  not already aligned within the organization.

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Behind the Scenes

• Information Technology will be heavily involved
  in the implementation.
• Ideally, there should be I.T. staff members
  assigned specifically to coordinate the
  Purchasing portion.

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Beware!

• Purchasing I.T. Software Mfg.
  Other Module Owners
• A LOT OF COOKS IN THE KITCHEN
• But we, Purchasing, get to choose the flavor of
  our dish.

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Talk About Multi-Tasking!

• During an implementation, the existing Purchasing
  staff must
• Evaluate current processes
• Decide on future processes
• Prepare end users for the change
• And still do their regular work.
• It is easy to get overwhelmed.

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• ITS ALWAYS BEST TO START AT THE BEGINNING.
• Wizard of Oz / Glinda, The Good Witch of the
  North

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Focus Prepare

• From the point you choose your software provider
  and decide on an implementation date, preparation
  is the key.
• CREATE YOUR TIMELINE!
• Let everyone involved know about the timeline.
  Carve it in stone and keep it visible.

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Example
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Prepare to Prepare(or Start at the Bottom)
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• Sharpen your focus and identify
• Key Players
• Critical Functionality
• End User Resistance
• Allies

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Key Players

• A basic implementation of purchasing software
  should include the following staff assignments
• Subject Matter Expert (or 2)
• Database Conversion Guru
• Change Champion
• Designated
  Hitters

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Key Players (contd)

• The Subject Matter Expert (SME) should be the
  primary focal point for all meetings with the
  software provider and owners of other modules.
  HAVE A BACK-UP!
• The Database Conversion Guru will have a lot of
  work to do. All data must be scrubbed prior to
  transfer, then checked after transmission.
  Often, repeatedly. (Think vendors, PO history,
  etc.)

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Key Players (contd)

• The Change Champion is the cheerleader. They
  will probably also serve on the implementation
  team, but their primary function is to
  broadcast the progress and prepare the way.
• The Designated Hitters are those end users
  designated as prophets. Usually, the more tech
  savvy users from each internal division.

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Critical Functionality

• What can you live with? Without?
• How much change is your entity willing to adopt?
• Should some components be brought on line at a
  later date? (i.e., p-card, bids)
• Purchasing must look with both a telescope and a
  microscope.

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Critical Functionality (contd)

• Good software provides end users with a means to
  purchase, but on the back end, provides a
  snapshot of the procure-to-pay process.
• Requisition to PO to Receipt to Payment
• (Including inventory control contract
  management)

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End User Resistance

• It is important to identify which end users may
  have trouble with changes.
• Reasons for resistance to change can be varied
• Organizational Structure Outdated Training
• Excessive Centralization (or Decentralization)
• Fear of the unknown Nay Sayers

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End User Resistance (contd)

• With any change, there will be an extended
  learning curve which takes end users outside of
  their comfort zones.
• To combat this period of discomfort, plant the
  seeds of ownership before the implementation.

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Allies

• Begin identifying people who are open to the
  impending changes and help them catch the
  fever.
• Reinforce the positives and keep key end users in
  the information loop.

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Allies (contd)

• Be honest. There will be good, bad, and ugly
  aspects to any implementation.
• Build and maintain a relationship that says, I
  am going to be right beside you during this
  thing!

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The Saga Begins

• These three tasks are critical building blocks
  for a successful implementation.

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• Thats the trouble. I cant make up my mind.
• -Wizard of Oz / The Scarecrow

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As-Is Assessment

• This assessment allows you to take what you
  currently do and match it up to a list of
  purchasing best practices.
• If your purchasing is in line with the American
  Bar Associations guidelines, the match will be
  very close.

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As-Is Assessment (contd)

• Remember, any changes to current process that are
  made at this time will mean additional changes to
  end user training and possible resistance.
• Each entitys As-Is Assessment will be unique, as
  will the various solutions to out-of-the-ordinary
  situations.

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Design Team Training Application Exploration

• This is where your SME becomes critical.
• The abilities of the incoming software is
  meticulously reviewed and matched up to existing
  functions.
• An alert and knowledgeable SME can spot a lot of
  issues beforehand.

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Design Team Training Application Exploration
(contd)

• In this phase, your entity will also be directed
  to begin scrubbing databases for later
  conversion.
• The scrubs are continuous until actual
  implementation--- so your Database Conversion
  Guru is critical from this point forward.

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Design Team Training Application Exploration
(contd)

• This is also a fun phase, because you get to
  customize some of the look and feel of the end
  program
• Form fields
• Buttons
• Screen Views

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To Everything There is a Time

• And it is between application exploration and
  actual design that any behind-the-scenes
  restructuring must occur.
• Vendor Database Numbering
• Account Numbering
• Naming Disciplines

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Design

• Purchasing will have say in the basic feel of
  their program or module.
• Much will be dictated by the basic software and
  allowed level of customizing.

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• Now I know were not in Kansas.
• -Wizard of Oz / Dorothy

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Conference Room Pilot

• Basically The Practice Phase
• This is the period in which your purchasing staff
  will actually get to learn the specific
  applications in the module.

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Conference Room Pilot (contd)

• Specific Purchasing Functions are tested prior
  to final design
• Requisitions Purchase Orders
• Inventory Receiving
• Payment Records
• Vendor Set-up Process Workflow

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Conference Room Pilot (contd)

• Always document processes.
• This serves as excellent training material when
  end user training is underway.
• Here is the place to question what was promised
  versus what is actual.

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Parallel Testing

• I.T. usually handles conversions and test
  database set-up.
• You will do every transaction twice, and possibly
  more!
• Manual to electronic is cumbersome.

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End User Training
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• Frightened? You are talking to a man who has
  laughed in the face of death--- sneered at doom,
  and chuckled at catastrophe.
• I was petrified.
• -Wizard of Oz / Professor Marvel (The Wizard)

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End User Training

• Time to call the Designated Hitters to the plate.
• Use the training manuals created from the
  Conference Room Pilots.
• Decide whether training will be phased in or
  implemented entity-wide.

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End User Training (contd)

• Plan this phase carefully.
• The Change Champions have been preparing the way
  until now, but end user training is hands-on.
• You will be dealing with folks very much outside
  their comfort level.
• For some, it is literally life-altering.

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End User Training (contd)

• Purchasing is in the enviable position of
  touching every aspect of an entitys daily
  functioning.
• The people you will be required to train may
  reach both ends of a broad spectrum
• Tech-Savvy Sam
• Dont-Own-A-Computer Connie

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Final Note on End User Training

• Learning is a continuous process.
• Train your end users constantly and consistently.
• Be honest with end users when things go haywire
  or are not working, or you just dont know the
  answer.

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Review

• It is a long journey from preparation to going
  live with a new purchasing software.
• Planning is the key.
• Identify your resources.
• Plan your route.

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Review (contd)

• Be prepared for set-backs and frustration.
• Scrub those databases!
• Test, Test, Test.
• (Then go back and test some more!)
• And finally.

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Review (contd)

• Plan and prepare your end users for the change.
• Take time with (and commit to) quality training.
• You will not only have implemented a procurement
  software system, but survived it as well.