Sep/091
Do ERP Best Practices Equate to Improved Company Performance? Part 5
Where’s the Elephant? 
I concluded the previous post with the notion that there was a large elephant in the room and that we best find it soon before we startle one another. The obvious elephant in the room for me is the question of which came first? The ERP system best practices or the best-in-class companies? In other words, does fanatical discipline and commitment relative to ERP system best practices lead an organization to achieve best-in-class status? Or does a best-in-class company simply exhibit similar champion-like execution and management relative to their ERP system, just as they would in any other element of their business?
This Aberdeen report does not attempt to answer the chicken or the egg question. However based upon my 20+ years of working with ERP systems, and what the report does reveal, there are some reasonable conclusions that can be drawn. In my belief, best-in-class companies exhibit the following characteristics with regard to their businesses, their ERP systems, and their other investment assets.
- They plan well in advance
- They take the long term view.
- They systematize and integrate practices, processes, and procedures wherever possible.
- They establish objectives in advance and constantly measure against those objectives.
- They set the bar high, keep raising it whenever possible, and hold people accountable.
- They adapt to change rapidly and avoid getting boxed in a corner.
- They face touch challenges head on and make tough decisions quickly.
- They reinvest continuously in their systems and their people.
- They recognize the value technology can bring to their business and they aggressively use it to their maximum advantage.
In other words, they avoid the duct tape patch jobs and do things right the first time whenever possible.
Looking in the Mirror
We have examined several of the critical factors relative to the way best-in-class companies manage and utilize their ERP systems. But as you might expect, we have just scratched the surface in terms of the ERP system best practices exhibited by best-in-class companies. My hope is that some of the data provided herein may enable you to assess your particular situation and the correlation that your ERP decisions are having on your overall business performance so that you can move the needle in the desired direction. I would love to know whether you agree with the preponderance of the Aberdeen data or do you think it misses the mark in some way?
Jeff Mack
President & CEO
ICS Support, Inc.