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Chapter 5 • Implementation Strategies 163

Communication. Communication is a key implementation consideration because there
are so many stakeholder groups impacted by an ERP program both internal (e.g.,
soldiers, business mission area personnel) and external to the army (e.g., legislators,
taxpayers). A communications strategy that includes tactical methods of disseminating
ERP program information both top–down and bottom–up via diverse communication
channels is an effective approach that contributes to program success.
GOVERNANCE
Governance of any major change in an organization is critical to the success of the change
effort, but governance of ERP programs is even more critical because of the size and scope
of the programs. They change both technology and business processes and job content.
This level of change requires that the organization understand the implications and be
prepared to make tough decisions. These types of decisions require executive sponsorship
and governance at the most senior level of the organization.

PERFORMANCE MEASUREMENT
Performance measurement of ERP generally includes two components: the ERP imple-
mentation itself and the operational or business results, or both. For the implementation
itself, the traditional measures of cost, performance, and schedule can be used. In terms of
operational or business results, or both, types of measures should include effectiveness,
efficiency, and customer satisfaction (i.e., the customer category can include internal and
external customers). An example of measuring business results is reducing the average
cycle time of vehicle parts restocking from 10 days to 4 days. All performance measures
must have a baseline. If there is not a baseline, there is nothing against which future per-
formance can be compared; therefore, there are no valid results.

CUSTOMIZATION AND CONFIGURATION
The decision to customize ERP software core functionality is not one to be made lightly. The
decision to modify ERP software is traditionally made to avoid painful and necessary business
process change and should be strongly questioned by senior leadership. The benefits of ERP
software, including the ability to take advantage of vendor updates to functionality, are negated
by customizations. There are huge dollar amounts and resource hours involved, often in
ACAT 1 programs, so it benefits the army to ensure that the investment is appropriately realized.
In addition to the benefits of ERP implementations as detailed in the ERP overview,
there are specific benefits to not customizing ERP software:
•Proven industry business practices can become embedded in the enterprise if effec-
tive change management is conducted.
• Maximizing investment in ERP software by minimizing the cost of upgrades and
maintenance of software.
•Integrating processes and information systems on a DoD-wide level is significantly
less complicated and costly if multiple components have the same application and
version of an ERP module without modifications.
•Reducing the need for scarce technical resources because the army would be able to
leverage the vendor’s support organization and realize the full value of the ongoing
support and maintenance fees charged by software vendors.