Applying the 5 Lean Principles to ERP Implementation Consultancy

Ever wondered why I was asked to join Sprint365, a Dynamics365 implementation company? I must admit, I was a little reluctant to step back into an industry often characterized by stressful, high-risk, long, and complex projects. However, when I was asked to oversee multiple ERP implementations simultaneously, I saw an exciting challenge: the chance to do what I love most—optimizing recurring business processes.

By viewing ERP implementation projects as recurring processes I could metaphorically view them as products moving along a carefully designed assembly line in a factory, I found a framework to improve efficiency and reduce variability. This perspective naturally led me back to the 5 Lean Principles.

Here’s how I will try to make those principles come to life in our effort to make ERP implementation projects for humans:

1. Define Value ??

The first principle of lean starts with understanding what value means to the customer. In ERP implementations, this involves aligning the solution with the client’s business goals, ensuring the delivered product enhances their operations, reduces costs, or supports growth.

In practice:

• Engage stakeholders early in learning and training, so they are well equipped for the difficult talks even before the project kicks off
• Focus on standard features and visualize the cost of gaps in a contemporary cloud- based architecture, where the cost of each gap needs to be multiplied with the number of updates you get from your system vendor

2. Map the Value Stream ??

Mapping the value stream is about visualizing all activities required to deliver the ERP project, from initial discovery to post-go-live support. This step reveals inefficiencies and opportunities for improvement.

In practice:

• Treat each phase of the project as stages on the pulse assembly line.
• Identify bottlenecks, such as missing handover, prolonged feedback loops or inefficient resource allocation, and streamline these processes.
• Use tools like Kanban boards to visualize workflows and enhance transparency across teams.

3. Create Flow ??

Flow is about ensuring the smooth and uninterrupted progress of work through the project pipeline. In ERP implementations, this means minimizing delays caused by handovers, resource conflicts, or unclear responsibilities.

In practice:

• Reduce "failure demand" (work caused by defects or rework) by implementing robust hand over procedures for every stage.
• Set a pulse for the work. Group tasks into phases that becomes manageable sprints

4. Establish Pull ??

In traditional manufacturing, "pull" ensures production only occurs when there's demand, avoiding overproduction. In ERP projects, this translates into delivering just what is needed, when it's needed, without wasting resources on unnecessary tasks.

In practice:

• Prioritize project features and functionalities based on client needs rather than delivering an all-encompassing solution upfront.
• Use agile methodologies to deliver incremental value to the client, ensuring early wins and reducing the risk of scope creep.

5. Continuous Improvement ??

Continuous improvement is the cornerstone of lean. ERP implementation projects offer recurring opportunities to refine processes, tools, and team dynamics for better outcomes.

In practice:

• Conduct retrospective reviews at the end of each project phase to identify what worked and what needs improvement.
• Invest in training teams to adapt to changes and embrace innovation.
• Use metrics like "time to configure" "First time data loads", and customer satisfaction to measure progress and inform decisions.

At Sprint365, the application of Lean Project Management has transformed how we approach ERP implementations. By focusing on value, streamlining processes, and fostering a culture of continuous improvement, we’ve created a framework that not only delivers projects efficiently with lower risk but also empowers teams to excel.

Let’s discuss how these ideas could optimize your next ERP initiative.

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