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Strategic Essence: The Missing Link in Business Information Systems: Part 4 -- The Essence should be the Point of Departure

The strategic essence of the organization should be the point of departure AND the focal point of every business information systems project -- THIS is the component of the business that should be jealously protected, strengthened and enhanced and it is the part of the business that is most vulnerable to bad decisions and botched projects

Strategic Essence: The Missing Link in Business Information Systems: Part 4 – The Essence should be the Point of Departure
    

Links to previous articles at the end of this article

Greetings,

Previous articles in this thread have discussed the lack of clarity with regard to the term strategy and proposed that strategy is "the essence of why an organization exists and how it thrives".  This definition is based on the work of Professor Malcolm McDonald

This definition has been extended through to the importance of differentiation.  A number of examples were used to demonstrate how the use of strategic essence thinking can unblock stalled business system projects.  This same approach can turn systems projects from mundane operational overheads into truly strategic resources.

The previous article highlights the importance of viewing any significant business systems investment as fundamentally strategic and driving it from a strategic executive business perspective.  This is tied into criteria to use in appointing system consultants and implementers.

This article stresses the importance of focussing on the strategic essence as the point of departure for every business systems project and, thereafter, focussing on the essence throughout the project.  From this it becomes apparent that a generic approach to system selection and implementation cannot work.

7. The essence should be the point of departure for EVERY project

By now I hope that it is apparent to you that the strategic essence is the point of departure for every project.

If you cannot clearly define how a business systems procurement, or much more mundane project will strengthen the essence of the business, do not do it!

"But operations",  I hear you cry.

Surely operations are an essential component of the essence of the business?

Remember Malcolm McDonald's massively important definition "if you do the right things well your organization WILL thrive".  The essence IS the right things, operations is about doing the essence of the business very well indeed.

The moment you allow yourself to be seduced into believing that you can do operational things without reference to the strategic essence of the business, then either your definition and understanding of the true essence is fatally flawed, or you are way off the mark with what you are doing!

The reason that virtually every business systems project, be it ERP, warehouse, etc project on the planet fails to support the business to thrive; and the reason that 98% of CEO's are disappointed with / frustrated with / off-the-record-angry with their business system and its implementers and operators, is because the project was undertaken with NO reference to the essence and the system gets in the way of the essence.  The expectations of just about every executive are numbed out with regard to their systems because of all the ... they have been sold and told.

Process obsession is the single biggest perversion and obstructor of strategy on the planet today.  Process obsession is a management consultant's money printing dream.  Process obsession majors on the minors and totally ignores the strategic essence of the business.   Process obsession encourages and enables mid-level operational consultants to facilitate mid-level operational people for days and days and days to get totally in the way of the strategic essence of the business.  When process obsession projects fail it is always the clients fault (fundamental management consulting commercial principle)!

When you focus on the essence and enhance the essence, then workflow will be optimized as an executive directed output of the project, a spin-off, a side output because the essence and equipping and empowering people to enhance the essence is the issue.

Want to reduce the cost of running your ERP?  Focus on the essence!

ERP NOT properly integrated?  Focus on the essence!

Too much dead wood?  Focus on the essence!  Double your turnover and headcount is no longer an issue!

One of the first projects that I ever did focussing on strategic decision support delivered exceptional executive information and operational performance management, totally unplanned, also delivered a 75% reduction in audit costs and a 25% reduction in administrative staff costs.

Make your people more effective in terms of the strategic essence of the business and the rest will follow!

8. Enhancing the essence should be the focus of every project

Every step of the way, focus on the essence.

In every decision, ask yourself if you will be enhancing the essence.

Once you are focussed on the essence, sterile debates about what aspects of the business should be "BPR'd" fall away.  In fact, the whole concept of "Business Process Re-engineering" will fall away.

Why do 70% of BPR projects fail outright?

Because they should NOT have been undertaken in the first place!

Why do another 20% of BPR projects materially fail to meet management expectations?

Because they should also not have been undertaken in the first place.

Incidentally, how do you "re-engineer" something that was NOT engineered in the first place?  I am an engineer and I have to say that I regard the whole concept of "Business Process Re-engineering" to be an entirely inappropriate use of the word "engineering"!

The essence is NOT about process, it is about doing the things that are central to the way the business works better and better and better and, IF there is workflow involved optimize the workflow.  Note that the way to optimize workflow is NOT to spend thousands of Pounds / Dollars / Euros / ... on "as is" process mapping -- what a lovely way for consultants to make money and a total waste of client money!  "We are going to build a new bridge and demolish the old bridge so we will document the way the old bridge works in minute detail"

NO!

Focus on the essence!

Optimize in support of the essence!

"Lean operations"? -- focus on the essence!

Focus the entire organization on getting exceptionally good at doing the essence of the business and it will thrive.

Focus the existing systems on enhancing the essence.  Reconfigure where necessary.  Add a data warehouse together with strategic taxonomies that focus on the essence and redefine your strategic management information.

Add every conceivable attribute to your databases that relates to the essence of the business.  Add essential strategic attributes onto every master file: your products, your people, your customers, your suppliers, your ...

Seek to get to the place where your business systems and accompanying data warehouse can answer every question you can reasonably expect them to answer.  including answers to the questions you have NOT yet thought to ask!

If you focus on the essence you will find that things flow easier, faster, more efficiently and more effectively.

If you focus on the essence you will find that the latest techno hype from major software and hardware vendors is no longer strategic.  In fact you will wonder why you ever paid any attention to their hype at all.

You will quite likely find that your five year / ten year / ... year old system IS capable of growing with your business and you will find ways to add clever pieces of software that enhance the essence around the core databases.  You will realize that the major ERP and business system products are massively undifferentiated and that it really does not matter which product you have or buy.  A customer record is exactly the same no matter what software and database you are using!  It does matter who advises you and how intuitively they understand the essence of our business and what niche specialty software you purchase.

One senior consultant part time who deeply grasps the essence of your business will add a thousand times more value than an army of the other kind.

9. One size fits all cannot work

By now I hope that you realise that choosing a business systems product on the basis of what your competitors are doing is a big mistake.

Choosing a system just because it is the "best of breed" (whatever that means) for your industry is an even bigger mistake unless, of course, you are the defining player in your industry in which case you are clearly NOT doing the essence well because, if you were, by now you should have taken over all the rest of them!

The same applies to your choice of consultants and the type of business improvement projects you undertake.

Understand your essence and then go out and carefully head-hunt the firm that aligns with your essence, the firm with the essential cultural fit, the firm whose service promise aligns with your service promise, the firm that specializes in optimizing the products or services that constitute the essence of your business.

Conclusion

I hope that I have challenged you to think differently about your organization and its systems.

I have spent the last 30 plus years learning about strategic essence and how to incorporate it into business system configuration and operation with leading edge concepts and proven methods to engineering levels of rigour.   I have also developed a highly effective, light touch, short duration "Pulse Measurement" based on Military Quick Attack techniques to determine the health of your systems and prescribe the treatment to fix them.

I would welcome the opportunity to assist your organization to put any and all of the principles discussed in this article into practice to assist your organization to THRIVE, commencing with a Pulse Measurement at a minimal cost compared to the value that you will derive from it (I offer a no gain no pay guarantee).

Yours faithfully,

 


Dr James Robertson PrEng

James A Robertson and Associates Limited
Assisting clients to thrive through effective and efficient application of Business Information Systems

Seeking to serve the Almighty Creator in all things

Mobile: +44 (0) 776-862-2875
Landline: +44 (0) 207-059-0007

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Previous articles:

Strategic Essence -- The Missing Link in Business Information Systems

A discussion of how strategic essence should inform all business improvement projects and particularly business information system projects.  This thread is intended to discuss the analysis of strategy, the planning of strategy and feeding strategy through into business system specifications and the management of projects.  Articles to date include:

Summary
1: Strategy Defined
2: Differentiation
3: The Essence IS Different
Determining Strategic Essence

The Real Issues in Business Information Systems

A discussion as to why business information system (and other business improvement projects) fail to deliver on expectations or fail outright, together with discussion of the critical factors that must be taken into account in order to achieve successful outcomes.  This thread is intended to progressively discuss more hands-on specifics of achieving high value outcomes and builds on the Strategic Essence series.  Articles to date include:

1: Introduction
2: The Real Issues -- Mythology and Lack of Executive Custody

Strategically Enriching your Business Information Systems

Discussion of practical specific measures that can be taken in order to greatly improve the information yield of business information systems at both the operational and executive strategic level.  A number of simple steps that can be taken immediately and more complex measures that can be taken over time.  This thread is intended to discuss increasing business system and data warehouse value yield using techniques that lead to significantly improved business intelligence capability, including support for the ability to "obtain answers to questions we had not previously thought to ask".  This builds on the content in the Strategic Essence and Real Issues threads.  Articles to date include:

1: Introduction
2: Principles of Data Engineering

Robust Business Information Systems Procurement

In order to fully apply the methods and principles discussed in the threads above with regard to new systems it is vital that a robust and effective approach to procurement is applied.  This requires a tough procurement approach directed at achieving a tough business outcomes orientated project that ensures a high value outcome.  This thread is intended to discuss the components of such a procurement approach, including the individual documents and process that make up the approach.  Thereafter the components will be discussed in more detail.  Articles to date include:

1: Introduction
2: Bill of Services, Laboratory, Go-live Certificate, etc

 


Random Selection of Articles by Dr James Robertson

Std 013 Procurement: 05 Software Schedule

The software schedule is a list of all functional software elements that it is assessed are required.  This is a basis for bidders to add and subtract the modules and products that they have to offer in order to make up the mosaic that constitutes the complete response to the requirement
The software schedule correlates directly with the Bill of Services and the two should be set up to align with one another
Std 009 Procurement: 01 Request for Proposal for Business Systems Solution

This is the heart of the tender and contains a large number of tough clauses that are directed at ensuring a realistic bid with a robust platform for realistic negotiation and a tough contract that is directed at ensuring performance

There is a more detailed version of this document at the end of this page for larger projects with a more detailed procurement process

Std 022 Procurement: 13 Skeleton Agreement

This is a broad framework for a contract.  The exact contract will need to be drafted by your organization's legal advisors based on the legal jurisdiction in which your organization operates
SNw 042 The Real Issues in BIS: Introduction

This article provides an overview of the main components of the approach to Business Information System investment success as first detailed in my book in 2004 and elaborated on and taught since then
Std 012 Procurement: 04 Procurement Timeline and Diary

The procurement timeline is a relatively simple Gantt Chart -- I lay it out in Excel, it is quick and serves the purpose, see the sample attached
The goal of the timeline is to set out the overall timing of the procurement process in sufficient detail that all parties are fully aware of the sequence of events that is planned so that they can schedule accordingly

Dr James A Robertson PrEng

Business Systems NOT delivering?

Call the Business Systems Specialist

Dr. James Robinson

Dr James A Robertson -- has been involved in the effective application of Business Information Systems, including but NOT limited to ERP, since 1987 and in the profitable and effective use of computers in Business since 1981.

Drawing on a diversity of experience, including formal military training in Quick Attack techniques at the Regimental Commander level, Dr Robertson has developed highly effective methods of investigating any sub-optimal Business Information Systems situation -- be it an established system or a stalled project or any other source of Executive frustration -- quickly and concisely diagnosing the root cause of the problem and prescribing concise practical actions that Business Executives can effectively act on see the Pulse Measurement page and also the Sample Reports page for redacted real reports.

He has also developed highly effective methods of strategically enriching systems to unlock the full potential of existing investments, see the Precision Configuration page and couples this to architecting small pieces of clever software that harness the full potential of your investment, see the Software page.

If you are having problems with your systems, your project or your IT Department, call The Business Systems Specialist
James@James-A-Robertson-and-Associates.com

Business System Failure is RIFE -- we offer insight into why this happens AND WHAT is required to prevent it.

Failure is at epidemic levels with massive damage done to client companies -- if you are NOT aware of the extent of the problem please visit the About Failure page for a catalog of major failures running to billions of Pounds and Dollars.

All evidence indicates that the established players do NOT know how to deliver stable, reliable high value solutions that WORK.

There HAS to be a better way!

This website provides information relating to that way with a large collection of white papers, presentations, standards documents, etc that you can use to start bringing the situation under control

We also offer high level advisory services with regard to the application of the principles advocated on this website

We offer an ENGINEERING APPROACH to addressing these issues

Click here to read more about the Engineering Approach

By Engineering I mean the formal, structured, highly disciplined, highly systematic, highly practical approach that consistently delivers results in ALL areas of human endeavor where formally trained and certified engineers are the ONLY practitioners permitted to operate -- think large buildings, factories, motor vehicles, aircraft -- highly complex systems that work at a level that we take it for granted that they WILL work and where failure is all but unthinkable and, when it happens, attracts immediate public attention and rigorous investigation directed at ensuring that such failures are prevented in the future -- in fact, everything that the management consulting industry that implements complex software systems is NOT

This approach is discussed further on the Engineering Approach page.

Search Articles

Book -- The Critical Factors for Information Technology Investment Success

In 2003 I undertook an in-depth analysis of all the information and experience that I had gathered with regard to the factors giving rise to Business Information System failure including ERP and general IT and classified this information into a number of categories including "The Factors Causing Failure" and "The Critical Factors for Success" based on this I developed a two day Course "The Critical Factors for Information Technology Investment Success" which is still offered today.

Based on this I wrote the book of the same name, which is available in electronic form here for download:


Random Selection of Articles by Dr James Robertson

Std 015 Procurement: 07 Bid Compliance Checklist

The Bid Compliance Checklist is designed to ensure that bid documents are complete and that bidders comply with prescribed requirements.  Bidder are required to initial each item to confirm compliance and reference to the documents that underpin the specific point where this is applicable
Cnf 071 SA Engineering to Thrive SAICE Railways and Harbours

The application of the principles that I have developed and successfully applied in the business information systems and IT arena to the broader technology arena in South Africa with regard to the challenges being faced in the South African economy with a view to developing an initiative to turn the economy around from a technical perspective
Std 026 Old Software IS Viable

Many business information system projects are motivated on the basis that the existing systems are obsolete.  This article challenges that argument with regard to a significant number of systems and presents information that will enable executives and managers to take a pragmatic view of this debate
Cnf 018 Designing and Implementing an Integrated Risk Management System

A small, rapidly designed and built loss management software solution with accompanying Precision Configuration built and deployed in a matter of a month delivered very substantial strategic management information value together with unexpected dramatic efficiencies

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Articles by James A Robertson and Associates

There is a large body of white papers, articles and other content produced by Dr James Robertson available on this website

Please click here to visit the detailed listing of articles

ArticleTagCloud for Articles Published by James A Robertson and Associates

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writer     

Table of Contents

Home

About Dr James A Robertson PrEng -- The Business Systems Doctor -- and Other Topics

Catalogue of Major Business Information System Failures

About the Engineering Approach

James Robertson's Value Add

Attributes of a HIGH VALUE solution

Recognizing Business System Failure

The Critical Human Foundation

Old Software IS Viable

From South Africa

Competencies of Dr James A Robertson PrEng

About Professor Malcolm McDonald

Table of Contents

About my relationship with the Almighty Creator, Yah the Eternally Self-Existing

Comments relating to the Business Systems Industry and other topics

Testimonials and other positive material regarding James Robertson

Reference Articles

List of Articles

Article Catalogue

Achieving High Value Business Information System outcomes

Executive Custody -- What is it and HOW do you get it?

The REAL Issues in Integrated Business Information System Success

Part 1: Introduction

Part 2 -- Mythology and Lack of Executive Custody

Part 3 – Strategic Alignment and Precision Configuration

Why your ERP is NOT delivering and HOW to FIX it

IT Project Management

Pulse Measurement

CEO Anthony Lee Comments on his experience of the Pulse Measurement

No Charge Guarantee on the Pulse Measurement Service

Examples of Pulse Measurement Outcomes

Critical questions regarding the Pulse Measurement™

The Pulse Measurement Workflow

The Critical Factors for Business System (ERP+) Investment Success in the Pulse Measurement

Indicative Pulse Measurement Durations

What is a JAR&A Pulse Measurement?

Survival of the fittest – why it makes sense to measure the pulse of your business

Examples of Pulse Measurement Outcomes over 24 years

Sample Pulse Measurement Reports

Strategy

Strategic Essence: The Missing Link in Business Information Systems

Strategic Essence: Overview

Strategic Essence: Part 1 -- Strategy Defined

Strategic Essence: Part 2 -- Differentiation

Strategic Essence: Part 3 -- The Essence IS Different

Strategic Essence: Part 4 -- The Essence should be the Point of Departure

Strategic Essence: Part 5 -- Discovering Strategic Essence

Strategy -- the Essence of the Business: What is it and how do you develop actionable strategic plans?

Simple Steps to Increase the Strategic Value of your ERP Investment

Free Strategic Snapshot Toolset and Manual

A strategy focused planning system beyond traditional budgeting

Tough IT and ERP Procurement and Contracting that Works

Robust Business Systems Procurement

Part 1 -- Introduction

Part 2 -- Bill of Services, Laboratory, Go-live Certificate, etc

Part 3 -- Executive Engagement, Bid Compliance, Adjudication and other matters

Procurement Documents

Guidance and Advisory Services

The Art of Project Leadership

Why Regular Communication with the CEO is Vital

The Business Simulation Laboratory

Precision Configuration and Strategic Business Information Architecture

Precision Configuration based on Strategic Engineered Precision Taxonomies

The JAR&A Cubic Business Model

Highly Structured Strategic Chart of Accounts -- a Vital Element of your Corporate Information Arsenal

The Product Catalogue -- an Essential Element of any Precision Configuration

Attributes -- answers to the questions you have NOT yet thought to ask

Case Studies of Notably Successful Projects with high value Precision Configuration

092 Doing things differently and better -- ASCO Case Study 2-- BPM Summit 2013

088 Strategic ERP Invesment -- ASCO Case Study -- Service Management Conference and Exhibition Africa

026 Information Architecture and Design of FIS for Rennies Group -- Financial Information Systems Conf

018 CRM Risk Control: Designing and Implementing an Integrated Risk Mgmt Sys -- Integrated Risk Mgmt Conf

011 V3 Consulting Eng: Benefits of MIS to Professional Practice -- SAICE 15th Ann Conf on Computers in Civil Eng

Strategically Enriching your Business Information Systems

Part 1 -- Introduction

Part 2 -- Principles of Data Engineering

Part 3 -- Steps in applying these recommendations

Simple Steps to increase the strategic information value yield from your Business Systems Investment

The Full JAR&A Taxonomy Manual

Part 1: Introduction, Problem Statement, Definitions and Examples

Part 2: Why Use JAR&A, Required Knowledge and Experience, Cubic Business Model and Chart of Accounts and Taxonomy Software

Part 3: How to do it, Case Studies and White Papers and other References

Example General Ledger Manual

Business Process -- Irrelevant, Distracting and Dangerous

The RIGHT Approach

Custom Strategic Software Design and Oversight of Construction

Standards for Custom Software Specification

What IS Software?

IT Effectiveness

Organizing Outlook

Critical Factors for I.T. Success

A Moral and Ethical Dilemma -- Systems that Fail

Case Studies examining Business Information System failures

The BBC Digital Media Initiative Debacle

The Bridgestone -- IBM Conflict

Speaking and Training

Showcase of Conference Presentations

Most Viewed Presentations

Briefings and Seminars

Why your ERP/BIS is NOT delivering and HOW to FIX it

ERP and IT Procurement that Delivers Results

The Critical Factors for IT and ERP Investment Success

Other Seminars

Conferences and Public Presentations

Conferences 80 to 99 -- 2009 to Present

Conferences 60 to 79 -- 2005 to 2009

Conferences 40 to 59 -- 1996 to 2005

Conferences 20 to 39 -- 1994 to 1996

Conferences 01 to 19 -- 1989 to 1994

On-Line Seminars (Webinars)

Webinar on Preparing and Presenting Webinars

Contacting James A Robertson and Associates Limited