1 © The Delos Partnership 2004 Delos Excellence Project Implementation Summary

2 © The Delos Partnership 2004 Delos Change Journey MobiliseDesignCommunicateReviewUnderstand Identify quick Benefits Develop Change Vision InternalSell-in ReviewSystems Establish Resources Resources Gain quick Benefits Detailed Process Design Public/PrivateWorkshops DevelopSystems Develop Task Teams Gain early Benefits Document Policies etc InternalEducation CreateSystems EstablishOrganisation SecureBenefits Refine ASSESSContinueEducation RefineSystems GainTeamwork ASSESS Cost/Benefit Develop Bus Strategy InitialEducation AppointSponsor PILOTPILOTPILOT

3 © The Delos Partnership 2004 Real World 1.If you dream of the impossible the incredible can be achieved 2.Many small steps 3.Needs everyone’s involvement 4.It’s all about changing mindware and not software 5.Performance measures need to change

4 © The Delos Partnership 2004 Common implementation issues 1.Not recognising financial benefits 2.Organisational silos 3.Insufficient project resource from inside 4.Inactive Steering Committee 5.Failure to develop and keep to a realistic plan 6.Failure to implement line accountability 7.Lack of acceptance of new performance measures 8.Yellow submarines

5 © The Delos Partnership 2004 Anticipating stress points along the ERP journey Project team Employees Middle managers Executive team Scope crisis No 1 Scope crisis No 2 Sudden depth scare Scope crisis No 3 Real world shock Eva- luation avoid- ance New challenge panic Loss Sponsor- ship fights Resource draining Test of nerve Sponsor switch Informed resistance Early results disappointment Shock over early failures Smoke and fire Ownership struggle Wet blankets Sniping & rumours Scope established Redesign solution Blue printTransition plan Prototype results Pilot results Full operation Imple- mentation crawl

6 © The Delos Partnership 2004 STOP The Inhibitors Good at ideas but poor at delivery Consensus decision-making Organisational politics Short attention span Changing responsibilities Lack of belief Inadequate systems Too many initiatives

7 © The Delos Partnership 2004 Enablers GO Discuss, decide, then do Establish clear business vision Address ‘difficult’ issues Advertise success Reward delivery, not ideas Encourage change and risk-taking Resource properly The board to publicly lead

8 © The Delos Partnership 2004 Delos Change Journey - Enabled MobiliseDesignCommunicateReviewUnderstand Identify quick Benefits Develop Change Vision InternalSell-in ReviewSystems Establish Resources Resources Gain quick Benefits Detailed Process Design Public/PrivateWorkshops DevelopSystems Develop Task Teams Gain early Benefits Document Policies etc InternalEducation CreateSystems EstablishOrganisation SecureBenefits Refine ASSESSContinueEducation RefineSystems GainTeamwork ASSESS Cost/Benefit Develop Bus Strategy InitialEducation AppointSponsor PILOTPILOTPILOT Discuss, decide, then do The board to publicly lead Establish clear business vision Address ‘difficult’ issues Encourage change and risk-taking Advertise success Reward delivery, not ideas Resource properly

9 © The Delos Partnership 2004 Leadership Management and Senior Team Managers People Commitment and involvement of all

10 © The Delos Partnership 2004 Business Excellence - Paradigm Challenge “The difficulty lies, not in the new ideas, but in escaping from the old ones.” John Maynard Keynes 1936

11 © The Delos Partnership 2004 Key activities MONTHS Activity EducationProject TeamPilotManagersPilotUsers InternalPilotLive IEPDefine ProcessPilotPilot processPilotAdd all familiesPilotLive InnovationDefine ProcessPilotDefine policiesPilotEstablish organisationPilotLive Demand PlanDefine ProcessPilotDefine PoliciesPilotEstablish organisationPilotLive MPSMTS v ATOPilotDefine PoliciesPilotEstablish organisationPilotLive IRA AccuracyControl GroupInitCycle CountingPilotLive BOM AccuracyFind ErrorsFix ErrorsUploadLive BOM StructureDefineRestructure and set up all Bills of MaterialsLive RoutingsFind errorsFix ErrorsLive Planning DataDefineSet upLive PurchasingDevelop Purchasing ToolsPilotEducate all vendorsLive ManufacturingDevelop Lean ManufacturingPilotEstablish across businessLive FinanceDevelop costing and IEP/Budget LinkPilotDevelop costs, Inv and WIP valuesLive Cont ImpDevelop Continuous Improvement toolsPilotEstablish across businessLive SoftwarePT debugPilotCarry out Software modifications and interfacesPilotLive