“Our old software” syndrome

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A few days back, while prototyping a new solution for a customer, one of the key users said: “But in our old software it didn’t work like that.” I was about to try to explain why the change, but then the user’s boss said:

– We aren’t implementing a new solution so that everything can stay the way it was.

How often does it happen to you that your customers say to you a similar thing: “But in our old system…”? What do you say to them? How do you approach change when your consultant proposes a new way of doing things, or a new approach to a common problem?

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Standard enemy

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The biggest jeopardies often lurk where we least expect them. When implementing an ERP system such as Microsoft Dynamics NAV, what should be one of our best allies, turns out to be our mortal enemy. It has a simple name: The Standard. Standard processes, standard functionality, standard documents, standard system. All these gizmos can turn into gremlins in a blink of an unattentive eye.

Standards are tricky. If during due dilligence, or diagnostic or analysis phase, we hear the prospect or customer utter the word “standard”, what do we instinctively do? Well, in a standard system, it’s pretty obvious what the standard is, and when the customer says that they “just have standard processes” it means that these processes are just covered with such a standard system, right? So we instinctively tend to skip the more detailed analysis of these, because after all, they are standard.

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Business case – do I eat it or?

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It’s a well known fact that IT projects fail every so often. Standish Group has been researching the success and failure factors of IT projects for a decade and a half, and they publish their results in their CHAOS report every two years or so. According to their 2006 report, only about 35% of projects can be categorized as successful, while 65% are declared unsuccessful. In this report, word unsuccessful can mean anything from exceeding time and/or budget (46% of projects) or failing altogether (19% of them). With such a huge proportion of projects going astray, maybe there was something wrong with these projects from the very beginning. Were the time and budget unrealistic? Were the project requirements, or even objectives, unrealistic? Maybe. Or maybe not. How can you tell?

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Not-so-elementary costing: The Change

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They say the only constant is change. I’d say that the only other constant is error. We humans tend to err. Give a repeatable task to a human, and they’ll mess it up every once in a while. Some call it the human factor.

One of the many repeatable tasks in Microsoft Dynamics NAV is setting up items. If you remember my rant about mandatory fields, and how I said they were baaad, there might be an even more baaad kind of fields: the default value fields. Because the system simply inserts a value into these fields without asking for your say, and if anything is easy, it’s only so easy to overlook these. Yep, you have a chance to voice your oppinion on these, but having got to hurry for a cup of coffe with Mary from accounting, admit it, you’re gonna leave that default FIFO costing method for an item every once in a while, even though it should really have been Average. Then you’ll start posting. Then your phone rings and starts screaming at you about a moron who screwed up items again.

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Scrap doesn’t just happen

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In reality, if you need 1,000 of whatever product, the manufacturing process is rarely going to yield exactly 1,000 of it, even if you feed into the first operation the exact quantities of raw materials system calculated as gross requirements. The process may produce 980 or 1,020, but is hardly ever going to be exactly 1,000. If you didn’t take scrap into account, or you took incorrect scrap into account, your actual output from the process might be much more unpredictable, with huge variances. Variances are always a problem, only they don’t have to be that big a problem in all scenarios.

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