What We Learned from ERP: The Massachusetts Story

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What We Learned from ERPThe Massachusetts Story
NASACT November 16, 2004
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The Massachusetts Story

• Commonwealth overview
• Project overview
• Key success factors
• What did we learn from ERP?

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Commonwealth of Massachusetts

• 38 billion in operations
• 6 Cabinet Secretaries and 156 Departments
• 86,000 employees
• Centralized statewide ERP II
• Financial management system MMARS
• Payroll HRCMS

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Commonwealth of Massachusetts (contd)

• Centralized statewide systems for all departments
  in all branches of Government
• Financial management system characteristics
• 5,000 online users across the Commonwealth
• 1.1 Million Payments (non-payroll)
• 1.2 Million Payroll Payments

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Commonwealth of Massachusetts (contd)

• 10th Largest State
• Size of a Fortune 34 company
• Our AMS Advantage 3 Financial Management
  implementation is ten times larger than CGI-AMS
  next largest installation
• PeopleSoft Time and Labor
• Largest Installation Worldwide

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Commonwealths ERP II Overview
PeopleSoft 8.x HR CM
Data Warehouse
AMS Advantage 3 LCM Financials
Users
Receipts
Legacy Banking
Department Systems
Payments
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What We Learned from ERPThe Massachusetts Story

• NewMMARS Project Overview

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NewMMARS Project Overview
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NewMMARS Project Overview
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NewMMARS Project Overview
Oct 02 Jan 03 Apr 03 Jul 03 Oct 03 Jan
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NewMMARS Project Overview
Oct 02 Jan 03 Apr 03 Jul 03 Oct 03 Jan
04 Apr 04 Jul 04 Oct 04 Jan 05
May 04
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NewMMARS Project Overview
Oct 02 Jan 03 Apr 03 Jul 03 Oct 03 Jan
04 Apr 04 Jul 04 Oct 04 Jan 05
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NewMMARS Project Overview
Oct 02 Jan 03 Apr 03 Jul 03 Oct 03 Jan
04 Apr 04 Jul 04 Oct 04 Jan 05
Dec 04
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Project Accomplishments

• Project implemented on time and within budget!
• Met early success criteria
• Continue to measure through calendar year
• Users have completed their daily business
• Payments processed on schedule
• Went live on virtually a baseline system
• Trained 5,000 users using web-based training
  curriculum

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What We Learned from ERPThe Massachusetts Story

• Key Success Factors

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Key Success Factors

• Contract negotiated for success
• Shared success criteria
• Involvement of stakeholders
• Strong executive governance
• Metrics and measurement tools
• Focus on system performance

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Success Factors Negotiate for Success

• Focus negotiation on how to achieve success not
  protect against failure
• Include strong intent language and define the
  intent
• Clearly document the roles, responsibilities, and
  level of effort of each partner
• NewMMARS executed 10 statements of work
• Align CIO with the CFO
• Only an integrated team works

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Success Factors Shared Success Criteria

• Criteria used as guiding principles for making
  decisions and prioritizing tasks
• Criteria must be measurable
• The success criteria were categorized as follows
• Business Results
• Transition Deployment
• Solution Quality

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Success Factors Involvement of Stakeholders

• Project governance must include key stakeholders
  especially detractors
• Executive Steering Committee
• CIO, Procurement, Treasury, Audit, Finance and
  Budget
• Project Steering Committee
• User Advisory Committee
• Executive Council
• Senior CGI-AMS executives, CIO, Comptroller

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Success Factors Strong Executive Governance

• Executive sponsor(s) must be actively involved in
  the project
• Bi-weekly steering committee
• Weekly project management meetings
• Review and approval of key deliverables
• Regular executive participation from vendor
• Effective executive quality assurance

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Success Factors Metrics and Measurement Tools

• Complexity of these project requires disciplined
  metrics
• almost done , 80 done does not work
• Consider Earned Value methodology for software
  deliverables
• Implement deliverable metrics from day one and
  continually tune
• All status reports should include measurable
  metrics and demonstrate progress

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Financial VSS Incidents
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SOW 3 - Conversion
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Success Factors Focus on System Performance

• Dont assume java based applications deliver the
  same performance as mainframe
• Scalability is a constant risk and must be
  aggressively managed
• A full-size production environment is required
  for benchmarking and ongoing testing
• Focus on both online and offline performance
• Sign a service level agreement

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What We Learned from ERP II

• Success only possible with dedicated, qualified
  team
• Use success criteria to guide the project
  activities / priorities
• Web-based learning (eLearning) powerful but
  cannot be 100 of training solution
• Recommend at least 20instructor-led training
• Commit to the baseline and stick with it
• Quickly spread the system knowledgebeyond
  project team

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What We Learned from ERP II

• Change management is under estimated
• Focus early and often
• Focus on current business functions
• Must continue to expand use to gain full benefit
• Product aligned well with Commonwealth business

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What We Learned from ERP II

• Partnership encouraged product input
• One neck to wring facilitates issue resolution
• Stability challenges grow as more data is entered
• Whack a Mole proficiency required
• Be prepared to react to the unexpected

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Questions?
Martin Benison Comptroller, Commonwealth of
Massachusetts Martin.Benison_at_state.ma.us (617)
973-2315
Daniel Keene Vice President, CGI-AMS Daniel.Keene_at_
cgi-ams.com [phone]