 Management Consulting and System Development Seite 1 © usb GmbH 2010 Secret Tips for the successful Implementation of a PLM System Detlef Haesner, usb GmbH,

 Management Consulting and System Development Seite 2 © usb GmbH 2010 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 Seite 3 © usb GmbH 2010 Man is a creature of habit…. I hate changes Resistance to change is natural!

 Management Consulting and System Development Seite 4 © usb GmbH 2010 Replace “CHANGE” by “IMPROVE” ?

 Management Consulting and System Development Seite 5 © usb GmbH 2010 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 General resistance due to emotional or political reasons

 Management Consulting and System Development Seite 6 © usb GmbH 2010 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? Have you ever heard something like this?

 Management Consulting and System Development Seite 7 © usb GmbH 2010 Other home-Made Problems  Unnecessary sponsoring of opponents in the technical departments due to insufficient communication in respect to project targets and project history  Insufficient project marketing  The implementation is too much focused on the technical aspects  Tools are selected first, processes will be defined later  No clear commitment from management staff to the project targets  Too few project sponsors in the technical departments  Management overestimates the flexibility of the users  Users are overextended with the design of new processes

 Management Consulting and System Development Seite 8 © usb GmbH 2010 PLM When thinking of PLM, people tend to think of an IT- system first Common Approach

 Management Consulting and System Development Seite 9 © usb GmbH 2010 And Pretty soon…… We are looking for a COTS PLM System

 Management Consulting and System Development Seite 10 © usb GmbH 2010 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 - Maintenance - Out of service - Recycling can be executed PROCESS

 Management Consulting and System Development Seite 11 © usb GmbH 2010 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 Seite 12 © usb GmbH 2010 And these Guys are Looking for a Cots product? We are looking for a COTS PLM System

 Management Consulting and System Development Seite 13 © usb GmbH 2010 PLM? And nevertheless

 Management Consulting and System Development Seite 14 © usb GmbH 2010 And now?

 Management Consulting and System Development Seite 15 © usb GmbH 2010 PLM Implementation is a Change Process ! Technical Factor Human Factor Process Factor The 3 Main factors

 Management Consulting and System Development Seite 16 © usb GmbH 2010 Change management creates security How Does it work ?  Content of change  Concerned staff, departments, …  Implication of change  The “Why”  Appropriate Communication Methods Efficient Change Management benefits from Dialogue

 Management Consulting and System Development Seite 17 © usb GmbH 2010  Make sure that changes are…..  transparent to and understood by anybody who might be concerned  considered as necessary or useful  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 Some More secret tips  Reduce complexity – enable flexibility  Engineers tend to fall in love to their systems, your solution need to be sexy

 Management Consulting and System Development Seite 18 © usb GmbH 2010 Not to forget Changes require a learning organization Actively committed peoplePassive people without commitment Promote culture of success seekers: Avoid culture of failure avoiders: Mutual support Organized responsibility Errors are tolerated as something normal Mutual blaming Errors are punished as careless Organized irresponsibility [meeting excess]

 Management Consulting and System Development Seite 19 © usb GmbH 2010 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 Seite 20 © usb GmbH 2010 Actually Happens….. Efficient Change Management guarantees the success of your PLM

 Management Consulting and System Development Seite 21 © usb GmbH 2010 Why are these meanwhile well-known Procedures, tips and hints notoriously ignored by the Management ? The Real Secret …

 Management Consulting and System Development Seite 22 © usb GmbH 2010 Thank You!