Case Study Overview

Organization: Global Manufacturing Inc.
Project: Implementation of a new Enterprise Resource Planning (ERP) system
Duration: 12 months
Budget: $5 million

Problem Scenario

Global Manufacturing Inc. is facing significant challenges in managing its operations due to outdated systems and fragmented processes across various departments. The existing legacy systems are unable to provide real-time data, leading to inefficiencies, increased operational costs, and poor decision-making. To address these issues, the organization has decided to implement a new ERP system that integrates all business functions, including finance, human resources, supply chain, and production.

However, the project is complex and involves multiple stakeholders with varying interests and concerns. Without a clear understanding of these stakeholders and their needs, the project risks delays, budget overruns, and ultimately, failure to achieve its objectives.

Objectives of the Stakeholder Map

  1. Identify Key Stakeholders: Recognize all individuals and groups affected by the ERP implementation.
  2. Understand Key Concerns: Document the primary concerns and interests of each stakeholder.
  3. Classify Stakeholders: Categorize stakeholders based on their influence and interest in the project.
  4. Facilitate Communication: Establish a framework for ongoing communication and engagement with stakeholders throughout the project lifecycle.

Stakeholder Identification

The project team conducted workshops and interviews to identify stakeholders across the organization. The following key stakeholders were identified:

  1. CxO (Corporate Functions): CEO, CFO, CIO, COO
  2. Program Management Office: Project Portfolio Managers
  3. Procurement: Acquirers
  4. Human Resources (HR): HR Managers, Training & Development Managers
  5. Enterprise Security: Corporate Risk Management, Security Officers
  6. QA/Standards Group: Data Owners, Process Owners
  7. Executive (End-user Organization): Business Unit Directors
  8. Line Management (End-user Organization): Senior Business Managers
  9. Business Domain Experts: Business Process Experts
  10. IT Service Management: Service Delivery Manager
  11. Regulatory Bodies: Financial Regulator
  12. Suppliers: Key Suppliers

Stakeholder Map

The following table summarizes the stakeholder map for the ERP implementation project:

Stakeholder Key Concerns Class Catalogs, Matrices, and Diagrams
CxO (Corporate Functions)e.g., CEO, CFO, CIO, COO High-level drivers, goals, and objectives of the organization; effective process and IT architecture. KEEP SATISFIED – Business Footprint diagram- Goal/Objective/Business Service diagram- Business Capability Map
Program Management Officee.g., Project Portfolio Managers Prioritizing, funding, and aligning change activity; understanding project dependencies. KEEP SATISFIED – Requirements catalog- Project Context diagram- Benefits diagram
Procuremente.g., Acquirers Understanding what components can be purchased and relevant constraints. KEY PLAYERS – Technology Portfolio catalog- Technology Standards catalog
Human Resources (HR)e.g., HR Managers, Training & Development Managers Managing people transitions and training needs. KEEP INFORMED – Organization Decomposition diagram- Organization/Actor catalog
Enterprise Securitye.g., Corporate Risk Management, Security Officers Ensuring data and system security; protecting against unauthorized access. KEY PLAYERS – Data Security diagram- Network and Communications diagram
QA/Standards Groupe.g., Data Owners, Process Owners Ensuring governance of business, data, application, and technology assets. KEY PLAYERS – Process/Event/Control/Product catalog- Technology Standards catalog
Executive (End-user Organization)e.g., Business Unit Directors High-level drivers and objectives; effective process and architecture. KEEP SATISFIED – Business Footprint diagram- Process Flow diagram
Line Management (End-user Organization)e.g., Senior Business Managers Top-level functions and processes; application support for these processes. KEY PLAYERS – Organization map- Process Flow diagram
Business Domain Expertse.g., Business Process Experts Functional aspects of processes and supporting systems. KEY PLAYERS – Business Interaction matrix- Business Service/Information diagram
IT Service Managemente.g., Service Delivery Manager Ensuring IT services meet required service levels. KEEP INFORMED – Technology Standards catalog- IT Operations diagrams
Regulatory Bodiese.g., Financial Regulator Receipt of necessary information for regulation; ensuring compliance with reporting processes. KEEP SATISFIED – Business Footprint diagram- Application Communication diagram
Supplierse.g., Key Suppliers Ensuring information exchange requirements are met to fulfill service contracts. KEEP SATISFIED – Business Service/Information diagram- Application Communication diagram

This table summarizes the key stakeholders involved in the ERP implementation project, their concerns, classification, and relevant artifacts that will be useful for each stakeholder. It serves as a foundational tool for managing stakeholder engagement and communication throughout the project lifecycle.

Analysis of Stakeholder Concerns

  1. CxO (Corporate Functions): The executive team is primarily concerned with how the new ERP system aligns with the organization’s strategic goals. They need assurance that the project will deliver value and improve operational efficiency.
  2. Program Management Office: This group focuses on the prioritization and funding of the project. They require a clear understanding of project dependencies and how the ERP implementation fits into the overall project portfolio.
  3. Procurement: The procurement team is interested in understanding the components of the ERP system that can be purchased and the constraints that must be adhered to, such as budget limits and vendor standards.
  4. Human Resources (HR): HR is concerned with the impact of the new system on personnel, including training needs and managing transitions for employees who will be affected by the new processes.
  5. Enterprise Security: Security officers are focused on ensuring that the new system complies with security protocols and protects sensitive data from unauthorized access.
  6. QA/Standards Group: This group is responsible for ensuring that the new ERP system adheres to organizational standards and governance policies.
  7. Executive (End-user Organization): Business unit directors are interested in how the new system will support their operational needs and improve service delivery.
  8. Line Management: Senior managers are concerned with how the ERP system will support their day-to-day operations and the efficiency of their teams.
  9. Business Domain Experts: These experts are focused on the functional aspects of the new system and how it will support existing business processes.
  10. IT Service Management: The IT team is concerned with ensuring that the new system integrates well with existing IT services and meets service level agreements.
  11. Regulatory Bodies: Regulators need to ensure that the organization complies with industry regulations and that reporting processes are in place to provide necessary information.
  12. Suppliers: Suppliers are interested in how the new system will affect their interactions with the organization and ensure that their service contracts are fulfilled.

Communication and Engagement Strategy

To effectively manage stakeholder concerns and ensure successful project implementation, the following communication and engagement strategies will be employed:

  1. Regular Updates: Schedule bi-weekly project updates for all stakeholders to provide progress reports, address concerns, and gather feedback.
  2. Workshops and Training Sessions: Conduct workshops for HR and end-users to discuss the new system’s functionalities and gather input on training needs.
  3. Stakeholder Meetings: Organize monthly meetings with key stakeholders, including CxOs and the Program Management Office, to discuss project milestones and strategic alignment.
  4. Feedback Mechanisms: Implement feedback channels (e.g., surveys, suggestion boxes) to allow stakeholders to voice their concerns and suggestions throughout the project.
  5. Documentation: Maintain comprehensive documentation of project decisions, stakeholder feedback, and changes to ensure transparency and accountability.
  6. Change Management Plan: Develop a change management plan that outlines how the organization will transition to the new ERP system, including communication strategies, training programs, and support resources.

Conclusion

The implementation of a new ERP system at Global Manufacturing Inc. is a complex project that requires careful stakeholder management. By creating a comprehensive stakeholder map, the project team can identify key concerns, classify stakeholders, and develop effective communication strategies. This proactive approach will help ensure that the project meets its objectives, stays within budget, and is delivered on time, ultimately leading to improved operational efficiency and better decision-making for the organization.

The stakeholder map serves as a living document that will be updated regularly to reflect changes in stakeholder roles, concerns, and project dynamics, ensuring that all parties remain engaged and informed throughout the project lifecycle.

Leave a Reply

Your email address will not be published. Required fields are marked *