Simple ERP: Do you want to make an Agile move in your Model Home?

We have come across many questions and opinions on Aglie methodology and success rate of Best Practice adoption in ERP implementation. This debate is old enough and full of references on both outcomes that there is no Best answer. Best Practice based Agile can be successful or it can fail with almost equal possibility though number of pessimistic views will out class optimistic ones. Most of leaders in this space believe that the success here lies in the intent of making it successful. My recent experience provided one clear pre-requisite to make it successful. Probably, it is widely known pre-requisite but hasn’t been executed with at most seriousness.

First of all, should Best Practice and Agile be always together in ERP implementation? Can there be a case of agile without Best Practice or Best Practice without Agile? I think the answer is Yes for both possibilities. However, let us look at the possibility of Best Practice and Agile together which is most popular with our customers.

What would really happen in the ERP implementation where Best Practices are needed to be adopted along project execution with Agile framework? It is the model home approach. I loved this analogy as it made me very easy to understand. Family would select the model home they want to buy with certain modifications to suit their needs. Similarly, company would adopt ERP with best practices with prioritized modifications executed in agile model comprising of multiple sprints/iterations.

The model home tour would happen for the family in sprints where the home is toured in predefined sequence with a question in mind – why this home cannot be adopted as it is as for my type of family needs. I as a buyer will accept few feathers of the home by walking room by room and would ask for few modifications. Then there will be prioritization of modifications, and construction of priority 1 modifications. Then the next tour of the home where priority 1 modifications included. After the second tour, next priority modifications will be debated, refined and taken for the construction. After 3 or 4 iterations of model home, it will be ready for possession.

What would happen when the model home is very basic and really doesn’t address the “Best Practice needs of that type of family? As an example, a family of husband, wife, three children (one boy and two girls), and both parents. Boy is college student, daughters are in middle school. The family comes from Indian origin and parents are old to climb the stairs. Following are the possibilities after first tour:

1. There will be too many modification requests
2. The family undergoing the tour will be lost in thoughts and will start questioning if they approached right builder and right housing project
3. Will walk out with the hope that there will be more suitable home during next tour
4. Few members will like the home as it fulfills their needs and few members will be unhappy

Possibilities 3 and 4 are very dangerous for the project. They will create hope and wait or confusion and debate. Possibility 1 will derail the purpose of buying the model home and it will have cost and timeline impact. Possibility 2 will stop the project, will restart the selection of builder and housing project.

So what can avoid these scenarios? The answer is – clarity on the “Best practice needs of that type of family”. When the Best Practices are presented, the preparation will be key for the successful adoption of the practices. The best practice “applicability” needs to grow following hierarchy of needs:

1. The clarity on exact needs of the industry will be first selection criterion.
2. Then it needs to address the sub segment where the company belongs. Within CPG industry the needs of food will be different than apparel. Within Food, Snacks and Sweets Company needs will be different than meat processing Company.
3. Then the variations based on size of the company, geographic spread need to narrow down and refine the applicable best practice processes.
4. Then the consideration of product variety, seasonality needs, customer profile, and business channels need to further narrow down the best practices.

So the Best Practice needs to be really the Best Fitting Practice for that narrowly defined business segment/ business profile. It needs to be the model home for an Indian family (Vastu home) with one son and two daughters who live along with their parents. Then the home tour will be interesting one for the first tour.

Once we have a good representation of the Best Practice for that business, the modifications needed will be lesser in numbers and clarity of priority will be high making the agile journey a smooth. The question – why can’t you adopt this process will be an objective question and the adoption will be high, and the change management will be less painful.

So the key lies in bringing the practice which is truly best for that small segment of business. The primary pre-requisite for the product as well as consulting company is in understanding the real business segment of the customer and define it as narrowly as possible and then prepare the right set of applicable Best Fitting Practices. That will make the family move in the model home quick, painless and long lasting one. Keep in mind that it is an Indian Family with one son and two daughters along with parents.