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The CIS Period of Inefficiency
Will You “Go-Live” or “Go-Dead”
With Your New CIS?
By Greg Galluzzi, CEO, TMG Consulting, Inc. | January 2008
You have been working diligently for 18 months and the time has
finally come to place your new CIS solution into production. Don't
expect the initial production period to be error free, we have a
name for it, it is called the "Period of Inefficiency"
and it is usually attributed to three major areas which are problematic.
1) Errors & Bugs
During the first three billing runs you are likely to experience
production critical problems which will require immediate attention.
These problems are typically attributed to one or all of the following:
- Application Errors – bills not calculated correctly
- Operation Errors – system is unavailable
- Data Integrity Errors – balancing and control problems
- Environment Errors – poor response times
Operating the system in production will result in the discovery
of problems and allow you to fix the "bugs".
2) Training & Preparation
Although you invested a lot of time and energy in training and
preparing your end users, it never seems to adequately prepare
users for productive use of a new system. Users need to utilize
the system in a production environment in order to really learn
it and become proficient with it. During this time, the utility
must provide adequate front-line support and an ongoing training
program to support users as they really learn the system.
3) Business Workflows & Processes
The business workflows and related processes are never quite ready
to support productive use of the system. It seems users must work
with the processes in conjunction with the production system in
order to restructure the workflow into an optimum and effective
process. In some instances system modifications may be required
to address functions in the automated system which are inefficient.
Period of Inefficiency – Don’t Oversell
So how long will this “Period of Inefficiency” last?
It may last from 3 months to 1 year. During this period of time
productivity may be less with the new system than it was with the
old system – so don’t oversell the new system capabilities
on day one of production. In order to become proficient and productive
in the new system you must:
- Fix Program Problems
- Really Learn The System
- Modify Business Practices
A typical transition period may require 3 months to fix the system
problems, 6 months for the users to really learn the system, and
12 months to modify business practices. At some point during this
effort productivity will increase and benefits will begin to be
realized.
What about Phase 2?
Once the system is placed into production many utilities attempt
to initiate a phase 2 project. They don’t understand that
everyone is exhausted and fighting this “Period of Inefficiency”.
It is imperative before any additional work is undertaken that the
utility stabilize the system and take stock of the situation. In
addition, commitments must be reaffirmed and people energized. Phase
2 work will occur when the "Period of Inefficiency" is
over.
How Long Will The System Last?
It may have taken 2 to 5 years to implement the new CIS solution.
A common question is, "how long will this new system last?"
After all some systems installed as recently as the year 2000 are
already being replaced. Given this, the standard response to how
long the system will last is “5 to 7 years”.
However, the goal with product solutions is to select a vendor
and a product that will continue to evolve both from a technology
and a business perspective. Ultimately, the system should last 30
years with major upgrades occurring every 5 to 7 years.
Remember Why We Replaced The Legacy Billing System
When problems are being experienced during the “Period of
Inefficiency” it is not uncommon for some users to fondly
remember how great the old system was. It is imperative that we
remind them why the old system was replaced and why the new system
was implemented. A few of these reasons may include:
- The system lacked a customer focus
- The system lacked flexibility
- The system could not bill specific accounts
- The system promoted inefficiencies
- The system operated on an older at risk technology
- There was limited development work occurring
- There were deficiencies in the data center (e.g. disaster recovery)
- A lack of integration with other systems
Once the user makes it through initial problems they should experience
a higher level of productivity than was possible with the old billing
system.
Support The Customer Life-Cycle
Regardless of the vision or objectives for the initial CIS “go-live”
there is one primary directive at which the CIS must be successful
– Support The Core Customer Life-Cycle. During the “Period
of Inefficiency” the utility must strive to support its customers
across the following core functions:
- Customer Interaction
- Customer Service
- Measurement of Usage
- Bill Production and Distribution
- Payment Processing
- Revenue and Billing Controls
- Credit and Collections
If the utility cannot read meters, get the bills out, process payments,
collect money, and answer the telephone there may be major repercussions
for the utility and the new CIS solution.
What About The Business & The People
While the implementation of new technology is the easy part, getting
the business ready, and the people prepared for the new system is
the hard part. In a lot of instances a utility will highly customize
the system to meet legacy business needs. In some cases the business
processes have not been effectively redesigned. Users have not been
adequately trained and the system may not have been properly configured.
All of these will become specific challenges during the
“Period of Inefficiency” and must be adequately
addressed.
The biggest challenge of any successful implementation
is the people. It is important to select the right people to work
on the project in order to insure ultimate success regarding the
CIS installation. When trying to address the people side of the
equation it is important to understand the following:
Experimenters: About 5%
These people have a short attention span and usually don’t
do well as core team members on the CIS project. They tend to
be unfocused and easily distracted.
Early Adapters: About 20%
These are the people who see the benefit of the new system and
have the respect of the user community. If they adopt the new
system others will soon follow. These are the people who should
participate as core team members.
Pragmatists: About 50%
These people will focus on their production work until it is necessary
to train and understand the new CIS. They will look to the early
adapters to validate the new system is a good thing, and they
will quickly learn and use the new system.
Late Adapters: About 20%
These people will be brought kicking and screaming to the new
CIS. They will have to be convinced the new system is better for
them then the old system. Over time during the “Period of
Inefficiency” these people will adapt and begin to use the
new system.
Resisters and are never ready: About 5%
As much as we hate to admit it, there will be users who will resist
the new system and will continue to profess the benefits of the
old system. Unfortunately these users will never adapt and must
be dealt with accordingly.
Following go-live it is important to identify the type of user
you are dealing with and work with them to understand and utilize
the new system.
Major Points of Contention – Utility Concerns of
Vendor
It is important to understand that the relationship between the
utility and the vendor may not always meet expectations. There are
a number of potential problems which the utility must deal with
during the installation and initial go-live period. Some of these
include:
- Numerous Product Defects Result In Workarounds
- Inefficient Product Workflow Impacts Business Operations
- Expensive & Time Consuming Upgrades
- Poor Quality Control & Late Delivery
- Not Responsive To Requests
- Poor Product Performance (batch and on-line)
- Increasing Product Risk – Older Technology
- Increasing Vendor Risk – Minimal Sales
- Increasing Costs To Maintain Solution
- Poor Working Relationship
Major Points of Contention – Vendor Concerns With
Utility
In addition the vendor may have issues in working with the utility
during the installation and post go-live timeframe. Some of these
may include:
- Apply Legacy Workflow To New CIS
- Inadequately Trained Users
- Unrealistic Expectations – Everything Day One
- Minimal Staffing Levels
- Minimal Operating Budget
- Lack Executive & Management Support
- Demanding Requests and Timelines
- Unsettled Business Environment
- Poor Working Relationships
- Other Consultants Promote Negative View
Summary
It is imperative that the utility recognizes the “Period of
Inefficiency” associated with a new CIS installation and does
not oversell the capabilities and productivity of the system before
it has an opportunity to address and resolve the issues presented
in this article.
Greg Galluzzi is the CEO and Founder of TMG Consulting.
Greg has 29 years of information technology and consulting experience
across 300 CIS projects.
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