ERP Stories

1. ERP Stories Whirlpool: hundreds of distributors without deliveries after the update of the SAP software Hershey: despite $115 million spent on SAP R/3 all shops empty on Halloween week Allied Waste Industries: ERP project stopped after $130 million investment Unisource Worldwide (wrote off $168 million in costs) and Dell (after months of delay and cost over-runs, found that the new system was not appropriate for its decentralised management model) cancelled their projects Foxmeyer: after three years of unsuccessful implementation, company sues SAP before going bankrupt……………

2. PPARS: The Irish Health Sector

3. PPARS - the story Started as a Payroll replacement solution 5 Health Boards and Saint James Hospital - not a national project 3 year implementation schedule Budget of €8.8 million Main Driver of Project – CEO of NWHB Project Manager

4. Health Service Reform (2001) 2001 – government launched ‘National Health Strategy: Quality and Fairness, A Health System for You’ Identified the need for system change to occur Developing HR Organisational Reform

5. PPARS - the story 2002 – Hay Management Consultants reviewed the PPARS project ‘value for money’ audit €17 million spent on PPARS (twice planned amount) Recommended Enhanced Governance (still not considered as a business change programme) National Coverage (only some facilities involved) Standardisation (too many area specific processes)

6. PPARS - objectives for a national initiative Development of a strategic approach to HRM - standardise and implement best practice HR processes and procedures Support the decentralisation of the HR functions – empowering managers to manage the human resources in their respective areas A fully integrated HR system, inclusive of payroll and attendance/ absence management A streamlined process between rostering and payment of salaries and eliminate the necessity for completion of different documents for payroll, personnel, attendances etc, where substantialduplication occurs Implement electronic data entry and approval process Accurate and timely reporting data on organisation structures and its people

7. PPARS PPARS - Phase 2 • 2002 – move for national coverage • Expected cost of €90 million for national coverage by 2005 • Deloitte Consulting introduced as implementation partner

8. Health Service Reform (2003) 2 reports written The Brennan Report The Prospectus Report Both reports highlighted Need for investment in IS Establishment of a NSSC (shared services centre, e.g. to coordinate Finance and HR data)

9. New Roles for PPARS The Brennan Report specifically referred to the centrality of PPARS in a reformed Health Service Both reports pointed to the positive role that PPARS would come to play in the Health Service of the future

10. PPARS - the story 2004 – Gartner Group commissioned to examine the structures and costs of the project 2005 – leaks to the press PPARS is suspended (after €150 million spent) Public outrage Opposition assaulted the government Inquiry is ordered

11. PPARS Problems No business rationale at the outset No appreciation of organisational change Poor Governance structures No Top Management support at Area level Over 500 project team members Poorly defined roles and responsibilities Not a ‘priority one’ project No decentralised Ownership or Responsibility for the project Poor HR personnel involvement at Area level Poor appreciation of process changes (replicated instead of replaced)

12. PPARS Problems No ‘end-game’ in mind before setting out (scope) Impossible to control timeframe and funding requirements Using legacy systems as departure point introduced ‘local interpretations’ and ‘selective nature’ on what was ruled in and what was ruled out Core of PPARS is Time Capture but never addressed by team - business process change

13. PPARS illustration Introduction of ‘Pay Group Rationalisation’ To standardise the number of Payrolls and try to bring Payroll back from monthly to fortnightly For example, the HSE Western Area and the HSE South-Eastern Area have 7 and 64 Payrolls respectively 64 different Gross to Nets and 64 different deadlines for the collection of Payroll information the HSE Mid-Western Area have 32 additional employees to process employee payments through PPARS on a fortnightly basis

14. PPARS Problems Manual data entry errors reported A number of incorrect payments made to HSE employees through the PPARS Manual workarounds These problems are being rolled out to all ‘go-live’ HSE Areas

15. Conclusion and Discussion What can we learn from such cases? What would you suggest is the best approach for the HSE going forward? Was PPARS an IT failure?