Lean Manufacturing in Practice – Bittercube

bittercube-productsIn this blog series, I’m showcasing products manufactured in my home state of Wisconsin. In addition to sharing some fun facts about the various companies and their products, I’ll be highlighting the Lean Manufacturing Principles that are best exhibited at each respective organization. These principles are derived from the Japanese manufacturing industry and center on making obvious what adds value while reducing waste muda. The six Lean Manufacturing Principles are: 1) Workplace safety, order, and cleanliness 2) Just in Time (JIT) production 3) Six Sigma quality 4) Empowered Teams 5) Visual Management 6) Pursuit of Perfection.

A cocktail renaissance has swept across the country, inspiring a new fascination with the ingredients, techniques, and traditions that make the American cocktail so special. The use of bitters, liquor that is flavored with the pungent taste of plant extracts, has been gaining popularity over the past decade. Originally developed for medicinal and digestive purposes, bitters now serve mainly as cocktail flavorings. The alcohol functions as a solvent for botanical extracts as well as a preservative.

Milwaukee has contributed to this cocktail renaissance with the help of Bittercube. Founded by Nicholas Kosevich and Ira Koplowitz in 2009, Bittercube handcrafts eight varieties of artisanal bitters, using only naturally sourced ingredients. By happenstance, the operations are run from the location that Foamation once occupied. Milwaukee was perceived as an untapped market with room to grow. Also, the low cost of operating expenses allow for maximum revenue generation.

Henry Ford created the first all-inclusive manufacturing strategy. However, it was Eiji Toyoda, a Japanese engineer, who after analyzing Ford’s methods, improved upon them by keeping an eye out for waste. Waste (or muda in Japanese) refers to any kind of wasted motion, effort or materials in the manufacturing process. Toyoda popularized the concept of Reducing Waste, which has become a basic tenet of Lean Manufacturing and falls under the principle of Pursuit of Perfection.

The objective of Lean is that every step must add value and be waste-free. A non-value added, or wasteful activity is one that neither adds value to the customer nor provides a competitive advantage to the organization.  Some non-value added activities include waiting and inappropriate processing. Waste can also take a tangible form, such as idle raw material or defects. Although transportation is an important aspect of the manufacturing process, it is a non-value added activity, as it adds to cost but not to value. It should be noted that some non-value adding activities like accounting and regulations are important and cannot be avoided.

Lean-manufacturing-bwThe continuous Pursuit of Perfection encompasses the idea that one must always strive to eliminate waste in the organization, while constantly making improvements, even if those improvements are small and incremental.  Improving processes results in reducing or eliminating variation, and improving the process flow or speed. Learning and consistent measures for improvement should be part of all processes if an organization intends on growing.

Bittercube has reduced waste by improving on their processes. In the past, they used a generic, high-density plastic container to process the bitters. There was no way to remove the botanical material after the batch was processed, other than to climb into the container and physically remove it by hand. Although this left the person who cleaned the container smelling of cinnamon, cloves, and vanilla, it wasted time and did not add value to the process. They have since updated to a custom-built processing/cooking tank with a bottom compartment where botanical material can easily be removed and cleaned.

Bittercube previously used generic boxes that weren’t cost efficient to ship. They have since opted for custom-made boxes with dimensions that maximize the number of bottles in each box, thus reducing wasted space and shipping costs.

Lean supports the notion that nothing should be wasted and a use must be found for everything. Bittercube has also reduced tangible/physical waste by reusing and recycling the processed materials. Instead of discarding the used botanicals, Bittercute has begun composting these materials. The finer botanical sediment will be reused in other products, such as an ingredient for Purple Door Ice Cream.

Autumn is upon us! Try this seasonal Maple Old Fashioned recipe!

2 oz. Johnny Drum Private Stock Bourbon, Fat .25oz. Maple Syrup, a dash of Jamaican #2 Bitters, a dash of Bittercube Bolivar Bitters, Garnish: Fat orange peel

To view other recipes and product offerings, visit Bittercube.

To read more about bitters, visit The History of Bitters

For more information on Lean Manufacturing see: Lean Waste Stream by Marc Jensen, Lean Enterprise: A Synergistic Approach to Minimizing Waste by William A. Levinson and Raymond A. Rerick, and Learning to See: Value Stream Mapping to Create Value and Eliminate MUDA by Mike Rother and John Shook

customer segmentation

Voice of the Customer – Customer Segmentation

When it comes to predicting customer behavior, historical sales data may contain critical clues. Who are repeat customers for a product or service? Have all segments of the target customers been identified? Segmentation is used to divide customers into groups based on their demographics, attitudes, or buying behaviors and target the specific groups with a message that will best resonate with them. The more you know about a customer, the easier it is to predict their behavior.

During this season of prediction making, you may want to consider playing the popular German game of Bleigießen “lead pouring,” in which your future is foretold through lead shapes. A spoon with a small amount of lead is held over a flame until the lead melts. The melted lead is then quickly poured into a bowl of water. Upon contact with water, the lead solidifies and forms a unique shape. The shape of the cooled lead is then compared to a list of meanings.

You might not have any control over shape formation (i.e. fish “Fisch” = luck “Glück” vs. cross “Kreuz” = death “Tod”), or what personal changes will manifest in 2015, but one area in which you may have some control is in increasing your company’s profitability. By implementing Customer Segmentation, a Voice of the Customer tool within Six Sigma methodology, you’re able to zero in on target customers who create the highest value and ultimately increase your profitability and bottom line.

What Does it Do?

Customer Segmentation identifies and focuses on subgroups of customers who create the highest value and prioritizes efforts to allocate appropriate marketing resources. Companies oftentimes neglect or miss opportunities because they treat all customers as bringing equal value or fail to understand the economic, descriptive, and attitudinal criteria of their core business.

Segmentation criteria can include:

  • Economic (revenue, frequency of purchase, loyalty, company size, etc.)
  • Descriptive (geographic location, demographics, industry)
  • Attitudinal (price, service, value)

The following Bleigießen examples exhibit segmentation criteria:

Customer segmentationShape 1. Ring “Ringe” = Marriage “Hochzeit”

Customers can be segmented demographically by marriage status (single, married, divorced). Married couples often have distinctly different purchasing behaviors compared to single consumers. This can relate to purchases such as cars, financial products, or holiday entertainment. For example, travel agencies would not offer similar holiday packages for bachelors and married couples.

customer segmentationShape 2. Mouse “Maus” = to be thrifty / economical “sparsam sein”

Customers can be segmented by purchasing power or behavior. These customers could be segmented demographically through social class (lower, middle, upper). Social class is a term linked to education, tradition, income (low, medium, high) and parenting. Alternatively, customers could be segmented attitudinally through values or lifestyle (conservative, economical, trendy). If your target customer is upper class, marketing via coupons will be a waste of time for a group indifferent to saving a few dollars.

customer segmentationShape 3. Bell “Glocke” / Egg “Ei” = Birth announcement “Ankündigung einer Geburt”

Customers can be segmented demographically through family size (couple only, small family, large family) and family lifecycle (young married no kids, married young kids). Customers can also be segmented attitudinally through needs or motivations (convenience, value, safety). If you’re considering entering new markets/regions and your target customers are children, you may want to avoid certain European countries, such as Spain, where there are 1.4 children per female.

How to Do It:

  • Identify the product or service being analyzed
  • Brainstorm to identify customers
  • Identify segmentation characteristics
  • Develop profiles of the segments
  • When gathering information, include members from each segment
  • Document results
Product/Services (Output) Customers Potential Segments
BleigließenGame  US Customers West Coast
East Coast
European Customers Western Europe
Eastern Europe

 Benefits of Tool:

  • Understanding customer segments and segment behavior can help tailor marketing and sales strategies
  • Reach profitability goals by demoting customers who don’t generate value
  • Formalizing segment profiles provides a common language

For related blogs that cover additional VOC tools:

Usage Based Insurance and Big Data – What is a Carrier to Do?

sma ubi tableThere is little doubt that Usage Based Insurance (UBI) (a.k.a. Telematics) is a hot topic in the U.S. Insurance Market. A recent survey from Strategy Meets Action found that while only 18 P&C insurers have an active UBI program in more than 1 state, 70% of insurers surveyed are in some stage of planning, piloting, or implementing UBI programs.

A carrier cannot venture into this space without considering the data implications. Usage Based Insurance, whatever its flavor, involves placing a device in a vehicle and recording information about driving behavior. Typical data points collected include: vehicle identifier, time of day, acceleration, deceleration (i.e. braking), cornering, location, and miles driven. This data can then be paired with publicly available data to identify road type and weather conditions.

Now consider, a 20 mile morning commute to work that takes the driver 35 minutes. If the data points noted above (9) are collected every minute, that 20 mile commute would generate 315 data points (about 16 data points per mile driven). If the average vehicle is driven 1000 miles in a month, it would generate 16,000 data points each month or 192,000 data points each year. Now consider what happens if a carrier enrolls even 1000 vehicles in a pilot UBI program. Within a year, the carrier must accommodate the transmission and storage of over 190 million data points. Progressive Insurance, the leader in UBI in the U.S. market, has been gathering data for 15 years and has collected over 5 Billion miles of driving data.

Even more critically, the carrier must find a way to interpret and derive meaningful information from this raw driving data. The UBI device won’t magically spit out a result that tells the carrier whether the driving behavior is risky or not. The carrier must take this raw data and develop a model that will allow the carrier to score the driving behavior in some way. That score can then be applied within rating algorithms to reward drivers who demonstrate safe driving behaviors. As with all modeling exercises, the more data used to construct the model, the more reliable the results.

While data transmission and storage costs are relatively inexpensive, these are still daunting numbers, especially for small and mid-sized carriers. How can they embrace the changes that UBI is bringing to the market?

From a pragmatic perspective, these smaller carriers will need to partner with experts in data management and predictive modeling. They will need to leverage external expertise to help them successfully gather and integrate UBI data into their organizations’ decision making processes.

In the longer term, credible 3rd party solutions are likely to emerge, allowing a carrier to purchase an individual’s driving score in much the same way that credit score is purchased today. Until then, carriers need to make smart investments, leveraging the capabilities of trusted partners to allow them to keep pace with market changes.

From Web Analytics to Customer Intelligence

CIWe recently were invited to present internally at a prominent health care payer network about the rapidly changin role and importance of web analytics. Gone are the good old days when it was enough to just run a log analyzer or put a simple tag to collect all the information needed about the interactions a customer has with you. Analysis used to be limited in scope and focus on a handful of parameters that could be optimized, such as bounce rates and conversion rates, by tweaking the checkout flows and usability improvements.

Not that conversion rate optimization is less important today but as customer interactions focus less and less on just the company website, the new critical need is to try and get a coherent picture of general customer behavior across all touch points. Instead of trying to infer customer thoughts and concerns through their clickstreams, many are now openly expressing needs and problems through social media.

This goes beyond “cross channel marketing” into the new area Forrester and others are now calling Customer Intelligence (CI). Similar to the way business data evolved from simple reporting into Business Intelligence (BI), as customer data gets more complex and varied, putting everything together and drawing conclusions and trends from it will need to employ similar methods and tools.

This is primarily a mindset change from the somewhat passive “analytics” to the broader and much more active role of managing and providing customer intelligence.

The expectations from Web Analytics professionals and systems are changing as well from the cyclical analysis and response to the providing of on demand, immediate intelligence for both individual and aggregate customer needs and problems. In some companies this evolved into a real “command center” that has 24/7 monitoring and interaction tools to listen, interact and respond to customer needs.

There are a few challenges that mark this transition:

  • Quantity: The quantity of interaction points is exploding due to social media, online videos and mobile devices.
  • Traceability: It is very hard to identify users across various media. Mapping a web user to a Facebook account or twitter feed is not always possible.
  • Immediacy: There is an overwhelming need and expectation for immediate response.

Here is a conceptual diagram of this new reality illustrating all the new interaction points being consolidated into the central Customer Intelligence and the introduction of the analytical services that can be used to optimize the user experience.

These analytical services can work on both an individual and aggregate level:

  • Individual: If we can aggregate customer data and interactions from different channels, this will dramatically improve segmentation, insight for sales and customer service professionals interacting with the customer, and services that can target offers or content in real time based on user past interest and behavior.
  • Collective intelligence: By looking at customer activity across all channels we can:
    • Optimize targeting through the different channels and our investment in them
    • Improve recommendations
    • Identify trends
    • Identify problems / issues / sentiment changes and address them quickly.

To start implementing Customer Intelligence, the process is now becoming quite similar to implementing a BI solution

  • Expand use of social listening and data capturing tools and store their data
  • Adjust data models to accommodate multiple user identifiers, channels, devices etc.
  • Redefine KPI’s
  • Define and implement analytical services
  • Adjust reporting and analytics
    • Real time
    • Dashboard level

The Web Analytics vendors are starting to step up and offer tools and support for Customer Intelligence. In upcoming posts we’ll look into WebTrends, Omniture, Google and IBM to see how their offerings stack up and the type of solutions they support.

Customer Intelligence – Analyzing and Acting on the Data

bubble cloudsPart one of this topic addressed leveraging social media to improve customer satisfaction.  This is the initial step towards a broader goal to create a robust Customer Intelligence framework that allows P/C insurers to listen, connect, analyze, respond and market to customers in a much more proactive and targeted way.

Customer Intelligence is the process of collecting relevant and timely information about customers and prospects, consolidating the data from all the different sources into a cohesive structure, and providing the sales, service and marketing functions with tools that can leverage this intelligence.  The sources of this data not only include the obvious ones such as a carrier’s Customer Service Center, and Policy or Claims Admin system, but should also originate from the Agent, Marketing Surveys, Telematics, and Social Media, including Twitter and Facebook – all mashed up to produce a Balanced Scorecard and Predictive Analytics.

Most CRM systems need to be updated to include new columns in their user profile for data in addition to email and phone number such as Facebook name, Twitter Handle, etc. With the social listening and response management connected to your CRM, a social inquiry can be viewed in context and the activity recorded for future interactions, available to Customer Service Reps or even Agency personnel. This level of social customer intelligence is going to differentiate companies that do it right, becoming a key element of a carrier’s business strategy.

A fully integrated Customer Intelligence platform provides benefits such as:

  • A single integrated interface to many social media outlets
  • The ability to manage multiple writing companies
  • Create and track cases, contacts, accounts, and leads from real-time conversations
  • Manage marketing campaigns and track social media marketing ROI
  • Cue CSR’s on upsell and cross sell opportunities

A carrier should determine the Key Performance Indicators (KPIs) that matter most to their business goals, then view the appropriate data in graphical dashboards to track effectiveness of their efforts.  It’s important to tie those KPIs to their influence on customer behaviors such as loyalty and increased sales.  But carriers must also be aware to not look at positive or negative changes in the wrong way and fully understand the reasons for success or failure.  Reacting to success by following up with more online advertising in certain media outlets, may not produce the desired results, when in fact the reason for an increase in sales is due to the upsell and cross sell efforts of CSRs.

Usage Based Insurance – Who are carriers’ target audience and who will be left?

usage based insuranceUnless you live totally off the grid, you have seen a commercial for Progressive’s Snapshot program.   Progressive and other major carriers are offering and forcefully marketing usage based insurance (UBI) to their customers.   The idea behind usage based insurance (a.k.a. Telematics) is that the insured’s premium is based on his/her actual driving behavior as captured by a device that is plugged into the vehicle and transmits data about driving habits to the carrier.

At least 18 states have 4 or more Personal Auto programs implemented, and 49 states have at least 1 program implemented.  In December 2012, Strategy Meets Action released research findings that about 70% of carriers have a UBI program in place, in pilot, or under consideration.  It was noted that if UBI captures only 10% of the market by 2020, 25 million cars will be insured through some type of UBI program.   If UBI captures 20-25% of the market, carriers without UBI will see the impact of adverse selection on their current book-of-business.

So what kinds of customers are carriers targeting, and if UBI takes hold of the market as promised, who will be left in non-UBI programs?

The obvious answer to the first question is safe drivers – the very slice of the market that every carrier wants to attract and to retain.  Progressive has released findings from its detailed analysis of 5 billion driving miles that demonstrated that drivers with the highest-risk driving behaviors have loss costs that are approximately 2.5 times the loss costs of drivers with the lowest-risk driving behaviors.   By targeting these lowest-risk drivers with special discounts, carriers attract the best of the best while improving their overall book of business.  Once a safe-driver is enrolled in the program, the special discounts also improve retention because the discounts get larger.  Given the proprietary nature of the driving behavior data that the carrier has collected, it is much harder for another carrier to match or beat that price point.

Beyond the safest drivers, there are other market niches that are well-suited to UBI programs. Consider the household with teen drivers or with aging drivers. UBI is an attractive product because it offers a way to monitor driving behavior among higher risk drivers within the household, and the very act of monitoring driving behavior and the feedback mechanisms have been shown to improve their driving behaviors. UBI programs are also a good fit for households where one or more vehicles see little use. With a growing cadre of telecommuters in the workforce and growing numbers of retiring baby boomers, how many vehicles sit parked for days at a time, especially during peak drive times?  Even if these drivers aren’t among the safest of drivers, their limited usage mitigates their exposure. Finally, consider the driver who has had 1 or 2 tickets or 1 or 2 accidents but is convinced that he/she is a safe driver; they were just unlucky. A UBI program allows these drivers to prove that they are safe drivers, lowering their rates and allowing the carrier to capture a truly safe driver that other carriers write-off as accident prone. At worst, a UBI program ensures that these drivers will pay rates based on their actual driving behavior, and the feedback loop provided with the programs can actually improve their driving behavior.

So who is left?   The drivers left outside a UBI program fall into two categories – those who could benefit from a UBI program but haven’t made the switch yet, and those unsafe drivers who would be penalized by entering a UBI program.

As better drivers join UBI programs, the majority of drivers in non-UBI programs will reflect poorer driving habits and much poorer claims experience. Carriers who offer only non-UBI programs will see their loss ratios deteriorate which will force rates higher. However, this will simply give the remaining safer drivers an even greater incentive to switch to carriers with a UBI program.  The market will bifurcate and carriers without a UBI program will find themselves essentially managing a book-of-business that is focused on non-preferred business.

The later that a carrier chooses to launch a UBI program the harder it will be to capture desired market share. At this point, the driving behavior associated with these programs is proprietary to the carrier.  While that may change in the future, it is currently impossible to purchase a driving score in the same way that a carrier purchases a credit score for a prospective insured. Therefore, once a driver is tied to a carrier’s program, it will be difficult to lure that driver to another program because the new carrier won’t know nearly as much about him/her as the current carrier.

The questions that remain are: how quickly will customers embrace these programs; how quickly will this change happen?   UBI programs have the potential to upend the Personal Auto market in much the same way that the introduction of credit scores did.   Will 2013 be the year that we begin to see real evidence of this coming trend?

Are you Paralyzed by a Hoard of Big Data?

Lured by the promise of big data benefits, many organizations are leveraging cheap storage to hoard vast amounts of structured and unstructured data. Without a clear framework for big data governance and use, businesses run the risk of becoming paralyzed under an unorganized jumble of data, much of which has become stale and past its expiration date. Stale data is toxic to your business – it could lead you into taking the wrong action based on data that is no longer relevant.

You know there’s valuable stuff in there, but the thought of wading through all THAT to find it stops you dead in your tracks.  There goes your goal of business process improvement, which according to a recent Informatica survey, most businesses cite as their number one Big Data Initiative goal.

Just as the individual hoarder often requires a professional organizer to help them pare the hoard and institute acquisition and retention rules for preventing hoard-induced paralysis in the future, organizations should seek outside help when they find themselves unable to turn their data hoard into actionable information.

An effective big data strategy needs to include the following components:

  1. An appropriate toolset for analyzing big data and making it actionable by the right people. Avoid building an ivory tower big data bureaucracy, and remember, insight has to turn into action.
  2. A clear and flexible framework, such as social master data management, for integrating big data with enterprise applications, one that can quickly leverage new sources of information about your customers and your market.
  3. Information lifecycle management rules and practices, so that insight and action will be taken based on relevant, as opposed to stale  information.
  4. Consideration of how the enterprise application portfolio might need to be refined to maximize the availability and relevance of big data. In today’s world, that will involve grappling with the flow of information between cloud and internally hosted applications as well.
  5. Comprehensive data security framework that defines who is entitled to use the data, change the data and delete the data, as well as encryption requirements as well as any required upgrades in network security.

Get the picture? Your big data strategy isn’t just a data strategy. It has to be a comprehensive technology-process-people strategy.

All of these elements, should of course, be considered when building your big data business case, and estimating return on investment.

Adobe, IBM, WebTrends, and comScore named leaders in Web Analytics

Independent research firm Forrester recently released their annual “Forrester Wave: Web Analytics, Q4 2011” report naming Adobe, IBM, comScore, and WebTrends as the current leaders of the web analytics industry. AT Internet and Google Analytics were also included as “strong performers” while Yahoo Analytics took 7th place as the lone wolf in the “contender” category.

Not surprisingly Adobe Site Catalyst and IBM Coremetrics stood out with the top two scores overall but WebTrends Analytics 10 and comScore Digital Analytix showed major stengths as well. Unica NetInsight, another offering from IBM did not make the list because of its inevitable fate to be merged with Coremetrics. In 2010, IBM acquired both Unica and Coremetrics. The Forrester report states, “IBM is incorporating the complementary and notable features of Unica NetInsight into a merged web analytics solution based on the Coremetrics platform.”

The full report can be downloaded from Adobe or WebTrends and will likely show up on other vendor sites soon.

Dunce Holding Paper Money

Personnel, personnel, everywhere, nor any data to drink.

IT’S UNFORTUNATE: Large amounts of money are spent on new hires, yet little is left for employee and data improvement

I recently had an Executive Director of a Cancer Institute tell me,

“At this time, we plan to use simple spreadsheets for our database.  We are committing more than $500,000 for investment in personnel to start our translational laboratory this year.  I hope  we can subsist with simple spreadsheet use for our pilot studies.”

This sentiment immediately followed a detailed discussion, one that I’m very familiar with, concerning disparate researchers’ databases and how organizations’ needs remain unsatisfied, suffering from lack of integrated data.

Just so we’re all on the same page, let me make sure I understand this situation correctly –

  1. You are currently using “simple spreadsheets” to assist researchers with all things data. You’ve astutely noticed that these stale methods don’t meet your needs, and you agreed to a meeting with Edgewater because you’ve heard positive success stories from other cancer centers.
  2. You just spent three quarters of a million dollars on fresh staff for a new translational lab.
  3. You are now budget-constrained because of this arrangement and want these new hires to use “simple spreadsheets” to do their new job… the same ineffective and inefficient spreadsheets, of course, that caused the initial trouble.

Did I understand all that correctly? I didn’t grow up in the ’60s, so I’ll continue to pass on what he’s smoking.

So who wins with this strategy, you ask? No one!

We keep buying things thinking ‘that’ll look better’ and it just doesn’t

It’s unfortunate for the researchers because they continue to rely on an antiquated approach for data collection and analysis that will continue to plague this organization for years to come.

How many opportunities will be overlooked because a researcher becomes overwhelmed by his data?

It’s unfortunate for the organization because it’s nearly impossible to scale volumes (data aggregation, analysis, more clinical trials, more federal/state grant submissions, etc.) with such a fragmented approach. How much IP will walk out of the door for these organizations on those simple spreadsheets?

It’s unfortunate for the brand because it can’t market or advertise any advances, operationally or clinically, that will attract new patients.

It’s unfortunate for the patients because medicine as an industry collectively suffers when:

  • Surgeons under the same roof don’t recognize and notify their counterpart researchers that they have perfect candidates for the clinical trials they’re unaware of.
  • Executives continue to suffer budget declines from lower patient volumes and less additional revenue from industries partnering with cancer centers that have their act together.
  • Researchers under a single roof don’t know what each other are doing.

As in the picture above, “more” doesn’t necessarily mean “better.” Ancillary personnel and sheets of data don’t necessarily equate to a better outcome. Why continue to add more, knowing that this won’t solve the problem? Why infect more new hires with the same sick system? Why addition instead of introspection?

So, just as I told him in my response, I look forward to hearing from you in about 12-18 months; that’s roughly the amount of time it took the last dozen clients to call Edgewater back to save them from themselves.


Keeping the Black Swan at Bay

A recent article in the Harvard Business Review highlighted some alarming statistics on project failures. IT projects were overrunning their budgets by an average of 27%, but the real shocker was that one in six of these projects was over by 200% on average. They dubbed these epic failures the “black swans” of the project portfolio.

The article ends with some excellent advice on avoiding the black swan phenomenon, but the recommendations focus on two areas:

  • Assessments of the ability of the business to take a big hit
  • Sound project management practices such as breaking big projects down into smaller chunks, developing contingency plans, and embracing reference class forecasting.

We would like to add to this list a set of “big project readiness” tasks that offer additional prevention of your next big IT project becoming a black swan.

Project Management Readiness: If you don’t have seasoned PMs with successful big project experience on your team, you need to fill that staffing gap either permanently or with contract help for the big project. Yes, you need an internal PM even if the software vendor has their own PM.

Data Readiness:  Address your data quality issues now, and establish data ownership and data governance before you undertake the big project.

Process/organization/change management readiness: Are your current business processes well documented? Is the process scope of the big project defined correctly? Are process owners clearly identified?  Do you have the skills and framework for defining how the software may change your business processes, organization structure and headcounts? If not, you run a significant risk of failing to achieve anticipated ROI for this project. Do you have a robust corporate communication framework? Do you have the resources, skills and experience to develop and run training programs in house?

Let’s face it: experience matters. If you’re already struggling to recover from a technology black swan, you are at considerable risk for reproducing the same level of failure if you don’t undertake a radical overhaul of your approach by identifying and addressing every significant weakness in the areas noted above.

We have developed a project readiness assessment model that can help you understand your risks and develop an action plan for addressing them before you undertake anything as mission critical as an ERP replacement, CRM implementation,  legacy modernization or other mission critical technology project. If you have a big project on your radar (or already underway), contact to schedule a pre-implementation readiness assessment.