Blog - Phase 2 of Implementations

PHASE 2 OF IMPLEMENTATIONS

If you have ever been a part of a major system implementation, especially a multi-functional ERP level one, you have certainly heard of the dreaded 'Phase Two'. Functionality or modules beyond the core, customizations to improve the default process, additional reporting or interfaces…all have the hallmarks to get added to a white board parking lot, and then end up on the Phase Two list.

Phase 2 Expectations Vs Reality

The Expectation:
- Phase 2 will kick off soon after Go-Live
- One Phase rolls right into the next Phase from a 'who' standpoint
- The items identified for future Phases are critical to long-term success and simply HAVE to be done
The Reality: Going Live and staying live takes time, Phase 2 never gets attention or momentum
The Phase 1 team goes back to their regular jobs, the budget is used up, and the supporting resources move on to the next gig
The business gets running the new way, and the Phase 2 items don't feel as critical…so they don't get started

Planning for Phase 2

The reality BEYOND the realities above though is that there usually should be additional phases to an implementation. There are additional modules that just didn't fit the scope, there are automations or other tweaks that would greatly improve processes or controls, and frankly no project gets everything done quite right (or they would never end). In fact, most businesses could stand for a regular cycle of planning and executing of phases and upgrades. Assuming then at least this concept makes sense…read on!

So here are some ideas that might help you achieve a successful Phase 2 (and beyond…):

Planning
- Begin planning a REALISTIC time-frame for Phase 2 well before go-live
  - Allow a buffer, even a few weeks, between the Go-Live and actual Phase 2 kickoff. But make sure it's a KNOWN buffer
  - Use that time to re-evaluate those built up requests, re-prioritize against the LIVE situation instead of the 'implementation' situation (new pain points will always outweigh those the team 'thought' were coming)
  - Don't wait until Go-Live is imminent, things get too crazy those last weeks. Instead, find time after final tests are complete. That 'slightly slower' time-frame when PMs are waiting on final migrations, report development and end user training
- Create a separate Project, with separate budget and resource allocations
  - They are separate events, don't let budget issues in one project time-frame de-rail another one
  - Users on an implementation often get burned out, so try and use different resources for a new perspective anywhere it makes sense to
  - If you can keep the best external resources involved, they can help guide new team members as well
Phase 1.1
- As items are defined as actually CRITICAL, set them into a Phase 1.1
- This Phase should start immediately after Go-Live, and get a very limited set of things taken care of
  - Focus on key reports, important controls and known pain points. Those items that you might otherwise have even delayed Go-Live for
- The existing core team can be planned ahead of time to keep things going for this short phase
- This has NUMEROUS benefits, including:
  - Shows post Go-Live progress is possible
  - Helps both keep the implementation on track (instead of waiting for these things and causing a delay) AND takes the pressure off of Phase 2 because some key things are already done!

Tracking and Managing Phase 2

The process for keeping track of Phase 2 begins almost on day one of Phase 1, sometimes even before the kickoff. Modules that are not in the 'must have' core process flow are often scheduled for Phase 2 in sales contracts. Tracking and managing what's in future phases isn't complex, but it can make a big difference as to whether or not things actually get done.

Phases vs Continuous Change

The first decision to make. Will we have formal phases with Project Management and more structure or will we have a more free-flowing 'ongoing change' standard of proceeding
- Either way can work of course, but having more formal Phases allows for cleaner tracking of status, more cross-functional visibility, and establishes that cadence of change/breathe/change/breathe
Tracking and managing during Phase 1
- Phase 2 lists can often become black holes, where To Do items can be consigned to neglect
  - Keep the Phase 2 list on a steady schedule of review
    - Normal PM meetings should always include at least some review and organization
      - Move things forward to 1.1, remove them as not required, or push out into a 'future' Phase
      - Keeping priorities in the right Phase can also make the objectives seem less daunting
    - As part of Steering Committee or similar meeting, include Phase 2 summaries
      - This will keep the information from being a surprise, demonstrates good planning, and allows those resource/budget discussions to flow naturally
  - Formal tracking is essential
    - What the item is, who requested it and why, and very importantly…what the impact is by NOT doing it in Phase 1 (this can easily slip minds…especially if there is turnover)
    - Reviewing this then becomes easier as you (next up…)
    - Without some depth in tracking, future phase items lose their context at the least, and lose all meaning in the worst
- What to include in a Phase 2
  - Reports - Those reports everyone THINKS they need, but don't HAVE to have for Go-Live
    - If it isn't in the ERP already, and isn't legal/statutory/senior management, it can probably wait anyway as there may not be enough good data to support it
  - Controls - This could be security role updates, tweaking/tightening configurations, or custom items that 'make' rules (those not system-enforced) be followed
  - Document Management - Enhancing how doc man is used into new areas
  - Functionality/Modules - Core flows at most businesses can exist without some ERP components in place, but they are important to long-term adoption of the overall tool. Examples of modules that are often in Phase 2:
    - Fixed Assets
    - Quality (beyond basics)
    - Project Management For those only using it for CAPEX or R&D tracking
    - Human Capital Beyond the core requirements for employee creation
    - CRM
    - Maintenance

Phase 2 can be almost as much work as the initial implementation, but it can go from essentially non-existent to a pleasant improvement and growth IF YOU PLAN. And it can be a positive experience if you incorporate good tracking and maybe a Phase 1.1. Now, let's move on to Phase 3 (I kid, I kid).

PHASE 2 OF IMPLEMENTATIONS

Phase 2 Expectations Vs Reality

The Expectation:

Phase 2 will kick off soon after Go-Live

One Phase rolls right into the next Phase from a 'who' standpoint

The items identified for future Phases are critical to long-term success and simply HAVE to be done

The Reality: Going Live and staying live takes time, Phase 2 never gets attention or momentum

The Phase 1 team goes back to their regular jobs, the budget is used up, and the supporting resources move on to the next gig

The business gets running the new way, and the Phase 2 items don't feel as critical…so they don't get started

Planning for Phase 2

So here are some ideas that might help you achieve a successful Phase 2 (and beyond…):

Planning

Begin planning a REALISTIC time-frame for Phase 2 well before go-live

Allow a buffer, even a few weeks, between the Go-Live and actual Phase 2 kickoff. But make sure it's a KNOWN buffer

Use that time to re-evaluate those built up requests, re-prioritize against the LIVE situation instead of the 'implementation' situation (new pain points will always outweigh those the team 'thought' were coming)

Don't wait until Go-Live is imminent, things get too crazy those last weeks. Instead, find time after final tests are complete. That 'slightly slower' time-frame when PMs are waiting on final migrations, report development and end user training

Create a separate Project, with separate budget and resource allocations

They are separate events, don't let budget issues in one project time-frame de-rail another one

Users on an implementation often get burned out, so try and use different resources for a new perspective anywhere it makes sense to

If you can keep the best external resources involved, they can help guide new team members as well

Phase 1.1

As items are defined as actually CRITICAL, set them into a Phase 1.1

This Phase should start immediately after Go-Live, and get a very limited set of things taken care of

Focus on key reports, important controls and known pain points. Those items that you might otherwise have even delayed Go-Live for

The existing core team can be planned ahead of time to keep things going for this short phase

This has NUMEROUS benefits, including:

Shows post Go-Live progress is possible

Helps both keep the implementation on track (instead of waiting for these things and causing a delay) AND takes the pressure off of Phase 2 because some key things are already done!

Tracking and Managing Phase 2

Phases vs Continuous Change

The first decision to make. Will we have formal phases with Project Management and more structure or will we have a more free-flowing 'ongoing change' standard of proceeding

Either way can work of course, but having more formal Phases allows for cleaner tracking of status, more cross-functional visibility, and establishes that cadence of change/breathe/change/breathe

Tracking and managing during Phase 1

Phase 2 lists can often become black holes, where To Do items can be consigned to neglect

Keep the Phase 2 list on a steady schedule of review

Normal PM meetings should always include at least some review and organization

Move things forward to 1.1, remove them as not required, or push out into a 'future' Phase

Keeping priorities in the right Phase can also make the objectives seem less daunting

As part of Steering Committee or similar meeting, include Phase 2 summaries

This will keep the information from being a surprise, demonstrates good planning, and allows those resource/budget discussions to flow naturally

Formal tracking is essential

What the item is, who requested it and why, and very importantly…what the impact is by NOT doing it in Phase 1 (this can easily slip minds…especially if there is turnover)

Reviewing this then becomes easier as you (next up…)

Without some depth in tracking, future phase items lose their context at the least, and lose all meaning in the worst

What to include in a Phase 2

Reports - Those reports everyone THINKS they need, but don't HAVE to have for Go-Live

If it isn't in the ERP already, and isn't legal/statutory/senior management, it can probably wait anyway as there may not be enough good data to support it

Controls - This could be security role updates, tweaking/tightening configurations, or custom items that 'make' rules (those not system-enforced) be followed

Document Management - Enhancing how doc man is used into new areas

Functionality/Modules - Core flows at most businesses can exist without some ERP components in place, but they are important to long-term adoption of the overall tool. Examples of modules that are often in Phase 2:

Fixed Assets

Quality (beyond basics)

Project Management For those only using it for CAPEX or R&D tracking

Human Capital Beyond the core requirements for employee creation

CRM

Maintenance

Phase 2 can be almost as much work as the initial implementation, but it can go from essentially non-existent to a pleasant improvement and growth IF YOU PLAN. And it can be a positive experience if you incorporate good tracking and maybe a Phase 1.1. Now, let's move on to Phase 3 (I kid, I kid).