Vice Adm. Keith W. Lippert USN*(Retired) shares his view on success factors for enterprise resource planning (ERP)-led defence transformations. He draws insights from a career that comprises more than 40 years in military supply chain and logistics, including five years as the Director of the United States Defense Logistics Agency (DLA).
“Opportunities are available today—technology, digital and advanced analytics—that present capabilities of which I could only have dreamed as a junior officer in the United States Navy.”
1 - Leadership support
If you are planning a large-scale transformation, it has to generate passion and commitment from the top. Senior management will need to communicate around this project constantly and consistently across the workforce, so leaders need to be involved and dedicated to the effort.
2 - Change management
The biggest challenge is people. You can bring in an ERP solution, plug it in and make it work, but it is the change management portion that is the hardest. Fortunately, there are techniques available from a training perspective that are there to help people embrace and understand change.
3 - Business case and accountability
Developing a business case is a critical step. Establish the anticipated costs, the resultant savings and the payback for the implementation. Plus it’s important to assign accountability for each category of anticipated saving to a senior member of the leadership team.
4 - Governance
Within the governance board, a single point of responsibility must be created to avoid decision making (or lack of decision making) by committee. The governance board should include members of the leadership team accountable for implementation and/or savings and a member from each partner who is assisting the implementation.
5 - Partnership Model
It is important to identify the right team, both internal resources and external suppliers, and work together as a team. Drawing on each other’s strength will bring the workforces together and have a multiplier effect on the outcome.
6 - Incremental rollouts
Start small, show it can work and then expand it. Identify your informal transformation leaders—not the ones you see in the management chart but the ones that people go to constantly because of their professionalism and what they have achieved. If you can get them on board first, the rest of the organisation will follow much more easily.
Transforming defence IT with digital technology