When implementing a new system, whether it is a new process, production line, system or procurement procedure, there are two approaches that you can take:
1. Big Bang approach
2. Phased approach
The Big Bang approach is that you go live with everything all at once. A great example of this type of approach are domino runs. You have no doubt seen the videos of these epic domino builds, and then the first tile is pushed over and they all tumble, to create an amazing display. This example really illustrates the big bang project approach well – it requires a lot of preparation, planning, as well as experience to know exactly how to set up the build. All this to make no section of the run falls before the first push, as well as ensuring that every single domino falls in the right way and at the right time when the run goes through.
The Phased approach is where you go live with one section at a time, though this doesn’t mean that you only work on one phase or section at a time. This is the approach that specifically the IT world is moving towards more and more. This approach, of working on smaller sections, going live with smaller working segments and then moving to the next segment often yields quick results. An example of this would be townhouse complexes, where the developer builds a handful of houses at a time and once the first are finished, people can move in, but there is still construction happening on other sections of the complex.
Most people are tempted to go with the big bang approach. It just appears more sophisticated, and you have a clear before and after picture, but it can be very risky.
The risks for the big bang approach are if one or two things go wrong the entire project will be delayed. And as I have mentioned in my various articles, something ALWAYS goes wrong on a project. Imagine you are building your domino run, and a section falls – you have set it up all-over again.
Which approach to use?
I would recommend using a phased approach. Using the Phased approach requires less upfront planning: An overall plan is created, but only the first phase is scoped and planned in detail. Learnings are used from one phase to the next, which means that while the first few phases may take long, but each subsequent phase is completed faster than the previous ones. Another benefit of using the Phased approach is that fewer risks need to be mitigated at a time, as the risk is spread, and mitigation plans from one phase can be tested and improved going into the next phase. Resource requirements are also spread, which does have a positive impact on cash flow. The approach also allows for lots of small wins along the way, which can be more motivating for the team.
Sometime though you do need to go with the Big Bang approach.
What you need for a successful Big Bang
Only when you can say you have all of the below in place, can you hope to have a successful project using the Big Bang approach. To illustrate these points, we will use the example of installing a new production line.
1. An experienced team that has successfully completed similar projects
The team that will be working on the project must have members who are experienced in implementing similar systems. This means that the team has a good understanding of what is required to ensure a successful project. Based on our example, it means there must be members on the team who have procured, set-up and settled new production lines. This will help with the next step.
2. A very detailed and realistic plan
The knowledgeable team members will be able to create a realistic project plan, that not only has all the required tasks, but also has realistic timeline. For our example the team would be able to say what is required, for instance building alterations, electrical requirements, time for shipping the new machinery and to set-up and test each new machine before settling the new production line.
Without a knowledgeable team to set this up, the plan will not be realistic: Steps will be missed, timelines will be optimistic and appropriate precautions will not be built into the plan. This will lead to a project that runs over, overspends and quite a few emergency meetings.
3. An experienced team who know the new system
The team will also require members that have intimate knowledge of the new system. For our example this means there must be team members who understand the production line and who know what each machine can and should do. This is important for the next step.
4. A plan that allows for continuous testing
The plan must allow time for testing and continuous feedback. In our new production line example this would mean continuous feedback from procurement regarding the supply of the new machinery, such as when the machinery will be shipped, and once it is shipped, when it will be received. The continuous feedback is important to course correct, should an issue or problem occur. Which brings us to the next requirement:
5. Complete buy-in from all stakeholders and from the steering committee
As mentioned in previous articles, the stakeholders and steering committee, in addition to the project team, must have bought into the project. Not only is this important for the planned tasks of the project, but if something goes wrong, you need everybody on board to take decisive action. For our new production line this could mean that the steering committee commits the resources to fly in parts from an overseas vendor, instead of shipping them in, to ensure that deadlines are not missed. With-out buy-in resources, such as money or people can be diverted to other activities.
Decisive action, such as that taken in our example, is only possible with the following:
6. Continuous communication and a close working relationship between all departments
As with our example above, where the decision was taken to fly in a part to meet the deadlines, the mitigating action could not have been speedily taken, if procurement did not have a good working relationship with the vendor. It also shows that there was good continuous communication between procurement and the project team, and ultimately the steering committee.
Continuous communication only happens with both formal and informal meetings. The formal meetings must be regularly scheduled, and, if you have buy-in, will be well attended.
7. Strong and continuous risk management
One of the major discussion points during the regularly scheduled meetings, or, ideally a scheduled meeting of its own, are risk reviews. As with our example, the good communication and good risk management allowed the team to take a case to the steering committee for approval to have the part flown in. Insufficient risk management leads to bad surprises, poor or no mitigation plans, which will inevitably lead to cost overruns and project delays.
Unless you can confidently say you have all seven of the above mechanisms in place, rather opt to go with the Phased Approach.