Secret Tips for the successful Implementation of a PLM System Detlef Haesner, usb GmbH, E-Mail:hsn@usb.muc.de Management Consulting and System Development © usb GmbH 2010 Seite 1 The Challenge The implementation of an enterprise wide strategy like PLM requires an elementary change of the business processes. The Problem Procedures, work steps, communication channels, etc. well trained over the last years and a common practice suddenly run totally different. Management Consulting and System Development © usb GmbH 2010 Seite 2 Man is a creature of habit…. I hate changes Resistance to change is natural! Management Consulting and System Development © usb GmbH 2010 Seite 3 Replace “CHANGE” by “IMPROVE” ? Management Consulting and System Development © usb GmbH 2010 Seite 4 Significant Effects Companies, departments, etc. are 'social systems' Established working and communication habits mean security and control to the system members The intent to change established habits is considered as a disturbance and implies a potential loss of security, power and control People are afraid of loosing security and control Fear provokes resistance (in 90% the main problem) General resistance due to emotional or political reasons Management Consulting and System Development © usb GmbH 2010 Seite 5 Have you ever heard something like this? Are you trying to tell me what I've been doing over the past ten years is no longer efficient? Are you trying to tell me that I am no longer Efficient? Management Consulting and System Development © usb GmbH 2010 Seite 6 Other home-Made Problems No clear commitment from management staff to the project targets Unnecessary sponsoring of opponents in the technical departments due to insufficient communication in respect to project targets and project history Too few project sponsors in the technical departments Management overestimates the flexibility of the users Users are overextended with the design of new processes Insufficient project marketing The implementation is too much focused on the technical aspects Tools are selected first, processes will be defined later Management Consulting and System Development © usb GmbH 2010 Seite 7 Common Approach When thinking of PLM, people tend to think of an ITsystem first PLM Management Consulting and System Development © usb GmbH 2010 Seite 8 And Pretty soon…… We are looking for a COTS PLM System Management Consulting and System Development © usb GmbH 2010 Seite 9 PLM ? Google: > 6,5 Million hits with various definitions and products … is an enterprise strategy, with the target to create an IT- working platform consisting out of … PDM, ERP, SCM, CRM, Cax, etc…. Based on this platform the whole - Product creation - Sales - In use PROCESS - Maintenance - Out of service - Recycling can be executed Management Consulting and System Development © usb GmbH 2010 Seite 10 PLM ? Wikipedia: A PLM System is due to its complexity not considered as a product which could be bought. Actually it has to be recognized as an enterprise STRATEGY. This has to be implemented with appropriate technical and organizational methods and procedures, adopted to the individual needs and facts of every company. Management Consulting and System Development © usb GmbH 2010 Seite 11 And these Guys are Looking for a Cots product? We are looking for a COTS PLM System Management Consulting and System Development © usb GmbH 2010 Seite 12 And nevertheless PLM? Management Consulting and System Development © usb GmbH 2010 Seite 13 And now? Management Consulting and System Development © usb GmbH 2010 Seite 14 The 3 Main factors PLM Implementation is a Change Process ! Technical Factor Process Factor Management Consulting and System Development Human Factor © usb GmbH 2010 Seite 15 Change management creates security Gathering of Information How Does it work ? Appropriate Communication Methods Content of change Concerned staff, departments, … Change Planning and Executing Forming of Assumptions Implication of change The “Why” Management Consulting and System Development © usb GmbH 2010 Seite 16 Some More secret tips Make sure that changes are….. transparent to and understood by anybody who might be concerned considered as necessary or useful Reduce complexity – enable flexibility Engineers tend to fall in love to their systems, your solution need to be sexy Try to make everybody who might be concerned an active participant Make sure that top management is committed …. Managing change is a leadership task Only top management is beyond departmental barriers Sometimes it is necessary to persuade people who cannot be convinced Management Consulting and System Development © usb GmbH 2010 Seite 17 Not to forget Changes require a learning organization Promote culture of success seekers: Avoid culture of failure avoiders: Actively committed people Organized responsibility Errors are tolerated as something normal Organized irresponsibility [meeting excess] Errors are punished as careless Mutual support Management Consulting and System Development Passive people without commitment © usb GmbH 2010 Mutual blaming Seite 18 Conclusion First, PLM is not just a system, it is a strategy, a concept, a tool, … only with motivated and committed users it will be possible to bring PLM to a commercial success. User acceptance will make or break your PLM project. Management Consulting and System Development © usb GmbH 2010 Seite 19 Actually Happens….. Efficient Change Management guarantees the success of your PLM Management Consulting and System Development © usb GmbH 2010 Seite 20 The Real Secret … Why are these meanwhile well-known Procedures, tips and hints notoriously ignored by the Management ? Management Consulting and System Development © usb GmbH 2010 Seite 21 Thank You! Management Consulting and System Development © usb GmbH 2010 Seite 22