how internal politics determine success of your plm system_boston engineering

Presenter: Jonathan R. Carr, Solutions Architect Date: June 2014

How Internal Politics Drive the Success or Failure of Your Product Development System

An Insider’s View of Organizational Change During the Adoption of PTC Windchill

Company Confidential © 2014 Boston Engineering Corporation 2

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Agenda

• Product development challenges: technology, complexity, and process • Roadblocks to employee buy-in • Two case studies • Three keys to employee adoption of product lifecycle management (PLM)

You are surrounded by politics


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“All politics is local” – former U.S. Speaker of the House Tip O’Neill “There’s not a business anywhere that is without problems….business is complicated and imperfect.” – Bob Parsons


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Product development challenges…

• Added product complexity (variety, technology, and functionality)

• Dynamic markets: need to expand product offerings while maintaining quality

• Relentless cost pressures

• Extended supply chain – more companies and global reach: Coordinate with international, cross-functional teams Comply with corporate standards and multiple regulatory bodies

Today

Distributed

100s of products

1000s of parts

Dynamic technology

Time to market = Months

Time within market = Months

Heavy cost pressures

Many government regulations

Before

Local

1 product

50 parts

Stable technology

Time to market = Years

Time within market = Years

Moderate cost pressures

Note: Adapted from PTC content


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… in a complex environment

Key challenges: • Departmental silos with different data systems • Lack of awareness of other departments’ processes



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New technology helps to integrate teams and business processes


Benefits of PTC‘s Product Development System (PDS): create, collaborate, control, configure, and communicate

Employees are one of three elements of business operations.

It is critical to establish a process and communications program to reinforce change.

• 55% of project managers believe that effective communications to all stakeholders is the most critical program success factor. – The Project Management Institute

• 70% of attempted organizational changes fail, with employees playing a key role in project outcomes. – McKinsey & Company


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Think beyond technology: employee buy-in can make or break a new program

• Resist giving up control or ownership • Balk at new levels of transparency and accountability • Worry that underlying IT issues become highlighted and cause

bigger challenges • Allow differences among departments to impede success • Have an “us” vs. “them” mentality between corporate and

regional sites • Fear that they will become expendable

Company Confidential

8

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Common roadblocks to employee adoption of new programs


Case Study 1

Green energy company addresses rapid growth, global expansion

Business Challenge: • Need to support high growth across multiple locations Solution: • Implement PTC Windchill to manage engineering design and documentation Politics: • Engineering not involved in the process • Remote sites not supporting the program Initial Roadblock: • Employee resistance caused:

Schedule delays Quality issues Costly late-stage design changes

Engineering


Case Study 1, Continued

Green energy company addresses rapid growth, global expansion

Reset for Success: • Added engineering to project steering

committee • Improved communication globally,

gained program advocates

Results: • System supports company growth • Company is meeting aggressive new

product introduction goals • Product quality is improved


Case Study 2

Lab devices manufacturer improves service with real-time insight into part changes

Business Challenge: • Outdated parts information impacts

customer satisfaction, slows service

Solution: • Make product engineering updates available

to global services team automatically via PTC Windchill

• Provide CAD product information in 3D

Politics: • Mid-project disruption by one department

threatens to put the project on hold


Case Study 2, Continued

Lab devices manufacturer improves service with real-time insight into part changes

Reset for Success: • Met with frustrated department head

immediately to diffuse the situation • Expanded project steering committee • Increased communications with all

stakeholders (from updates to gathering feedback)

Results: • Increased service team efficiency • Reduced repair times • Cut component replacement cost


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Three keys to employee adoption of PLM

1. Communicate, communicate, communicate Don’t underestimate the time and repetition required to educate and assure employees Underscore benefits (financial savings in specific areas, etc.) Make your objectives clear – from all-staff emails to departmental meetings Create a communications framework – from sending pre-meeting agendas to creating

a feedback loop to address employee questions

2. See the employees’ perspective Acknowledge short-term “pain” while employees learn new processes Underline the companywide gains – especially if benefits won’t be evenly distributed

across departments

3. Get help Enlist a “change champion” in each group to advocate for your program Make sure that there are employees at all levels that you can leverage to influence

specific teams

Boston Engineering Corporation: 300 Bear Hill Road, Waltham, MA 02451 www.boston-engineering.com

© 2014 Boston Engineering Corporation

Phone: 781-466-8010 E-mail: [email protected]

Web: boston-engineering.com

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