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This time a short post (for me) as I am in the middle the series “Learning from the past to understand the future” and currently collecting information for next week’s post. However, recently Rob Ferrone, the original Digital Plumber, pointed me to an interesting post from Scott Taylor, the Data Whisperer.

In code: The Virtual Dutchman discovered the Data Whisperer thanks to the original Digital Plumber.

Scott’s article with the title: “Data Management Hasn’t Failed, but Data Management Storytelling Has” matches precisely the discussion we have in the PLM community.

Please read his article, and just replace the words Data Management by PLM, and it could have been written for our community. In a way, PLM is a specific application of data management, so not a real surprise.

Scott’s conclusions give food for thought in the PLM community:

To win over business stakeholders, Data Management leadership must craft a compelling narrative that builds urgency, reinvigorates enthusiasm, and evangelizes WHY their programs enable the strategic intentions of their enterprise. If the business leaders whose support and engagement you seek do not understand and accept the WHY, they will not care about the HOW. When communicating to executive leadership, skip the technical details, the feature functionality, and the reference architecture and focus on:

  • Establishing an accessible vocabulary
  • Harmonizing to a common voice
  • Illuminating the business vision

When you tell your Data Management story with that perspective, it can end happily ever after.

It all resonates well with what I described in the PLM ROI Myth – it is clear that when people hear the word Myth, they have a bad connotation, same btw for PLM.

The fact that we still need to learn storytelling is because most of us are so much focused on technology and sometimes on discovering the new name for PLM in the future.

Last week I pointed to a survey from the PLMIG (PLM Interest Group) and XLifcycle, inviting you to help to define the future definition of PLM.

You are still welcome here: Towards a digital future: the evolving role of PLM in the future digital world.

Also, I saw a great interview with Martin Eigner on Minerva PLM TV interview by Jennifer Moore. Martin is well known in the PLM world and has done foundational work for our community

. According to Jennifer, he is considered as The Godfather of PLM.  This tittle fits nicely in today’s post. Those who have seen his presentations in recent years will remember Martin is talking about SysLM (System Lifecycle Management) as the future for PLM.

It is an interesting recording to watch – click on the image above to see it. Martin explains nicely why we often do not get the positive feedback from PLM implementations – starting at minute 13 for those who cannot wait.

In the interview, you will discover we often talk too much about our discipline capabilities where the real discussion should be talking business. Strategy and objectives are discussed and decided at the management level of a company. By using storytelling, we can connect to these business objectives.

The end result will be more likely that a company understands why to invest significantly in PLM as now PLM is part of its competitiveness and future continuity.

Conclusion

I shared links to two interesting posts from the last weeks. Studying them will help you to create a broader view. We have to learn to tell the right story. People do not want PLM – they have personal objectives. Companies have business objectives, and they might lead to the need for a new and changing PLM. Connecting to the management in an organization, therefore, is crucial.

Next week again more about learning from the past to understand the future

Last week I shared my thoughts related to my observation that the ROI of PLM is not directly visible or measurable, and I explained why. Also, I explained that the alignment of an organization requires a myth to make it happen. A majority of readers agreed with these observations. Some others either misinterpreted the headlines or twisted the story in favor of their opinion.

A few came from Oleg Shilovitsky and as Oleg is quite open in his discussions, it allows me to follow-up on his statements. Other people might share similar thoughts but they haven’t had the time or opportunity to be vocal. Feel free to share your thoughts/experiences too.

Some misinterpretations from Oleg’s post: PLM circa 2020 – How to stop selling Myths

  • The title “How to stop selling Myths” is the first misinterpretation.
    We are not selling myths – more below.
  • “Jos Voskuil’s recommendation is to create a myth. In his PLM ROI Myths article, he suggests that you should not work on a business case, value, or even technology” is the second misinterpretation, you still need a business case, you need value and you need technology.

And I got some feedback from Lionel Grealou, who’s post was a catalyst for me to write the PLM ROI Myth post. I agree I took some shortcuts based on his blog post. You can read his comments here. The misinterpretation is:

  • “Good luck getting your CFO approve the business change or PLM investment based on some “myth” propaganda :-)” as it is the opposite, make your plan, support your plan with a business case and then use the myth to align

I am glad about these statements as they allow me to be more precise, avoiding misperceptions/myth-perceptions.

A Myth is bad

Some people might think that a myth is bad, as the myth is most of the time abstract.  I think these people do not realize that there a lot of myths that they are following; it is a typical social human behavior to respond to myths. Some myths:

  • How can you be religious without believing in myths?
  • In this country/world, you can become anything if you want?
  • In the past, life was better
  • I make this country great again

The reason human beings need myths is that without them, it is impossible to align people around abstract themes. Try for each of the myths above to create an end-to-end logical story based on factual and concrete information. Impossible!

Read Yuval Harari’s book Sapiens about the power of myths. Read Steven Pinker’s book Enlightenment Now to understand that statistics show a lot of current myths are false. However, this does not mean a myth is bad. Human beings are driven by social influences and myths – it is our brain.

Unless you have no social interaction, you might be immune to myths. With brings me to quoting Oleg once more time:

“A long time ago when I was too naive and too technical, I thought that the best product (or technology) always wins. Well… I was wrong. “

I went through the same experience, having studied physics and mathematics makes you think extremely logical. Something I enjoyed while developing software. Later, when I started my journey as the virtualdutchman mediating in PLM implementations, I discovered logical alone does not work in businesses. The majority of decisions are done based on “gut feelings” still presented as reasonable cases.

Unless you have an audience of Vulcans, like Mr. Spock, you need to deal with the human brain. Consider the myth as the envelope to pass the PLM-project to the management. C-level acts by myths as so far I haven’t seen C-level management spending serious time on understanding PLM. I will end with a quote from Paul Empringham:

I sometimes wish companies would spend 6 months+ to educate themselves on what it takes to deliver incremental PLM success BEFORE engaging with software providers

You don’t need a business case

Lionel is also skeptical about some “Myth-propaganda” and I agree with him. The Myth is the envelope, inside needs to be something valuable, the strategy, the plan, and the business case. Here I want to stress one more time that most business cases for PLM are focusing on tool and collaboration efficiency. And from there projecting benefits. However, how well can we predict the future?

If you implement a process, let’s assume BOM-collaboration done with Excel by BOM-collaboration based on an Excel-on-the-cloud-like solution, you can measure the differences, assuming you can measure people’s efficiency. I guess this is what Oleg means when he explains OpenBOM has a real business case.

However, if you change the intent for people to work differently, for example, consult your supplier or manufacturing earlier in the design process, you touch human behavior. Why should I consult someone before I finish my job, I am measured on output not on collaboration or proactive response? Here is the real ROI challenge.

I have participated in dozens of business cases and at the end, they all look like the graph below:

The ROI is fantastic – after a little more than 2 years, we have a positive ROI, and the ROI only gets bigger. So if you trust the numbers, you would be a fool not to approve this project. Right?

And here comes the C-level gut-feeling. If I have a positive feeling (I follow the myth), then I will approve. If I do not like it, I will say I do not trust the numbers.

Needless to say that if there was a business case without ROI, we do not need to meet the C-level. Unless, and it happens incidental, at C-level, there was already a decision we need PLM from Vendor X because we played golf together, we are condemned together or we believe the same myths.

In reality, the old Gartner graph from realized benefits says it all. The impact of culture, processes, and people can make or break a plan.

You do not need an abstract story for PLM

Some people believe PLM on its own is a myth. You just need the right technology and people will start using it, spreading it out and see how we have improved business. Sometimes email is used as an example. Email is popular because you can with limited effort, collaborate with people, no matter where they are. Now twenty years later, companies are complaining about the lack of traceability, the lack of knowledge and understanding related to their products and processes.

PLM will always have the complexity of supporting traceability combined with real-time collaboration. If you focus only on traceability, people will complain that they are not a counter clerk. If you focus solely on collaboration, you miss the knowledge build-up and traceability.

That’s why PLM is a mix of governance, optimized processes to guarantee quality and collaboration, combined with a methodology to tune the existing processes implemented in tools that allow people to be confident and efficient. You cannot translate a business strategy into a function-feature list for a tool.

Conclusion

Myths are part of the human social alignment of large groups of people. If a Myth is true or false, I will not judge. You can use the Myth as an envelope to package your business case. The business case should always be a combination of new ways of working (organizational change), optimized processes and finally, the best tools. A PLM tool-only business case is to my opinion far from realistic

 

Now preparing for PI PLMx London on 3-4 February – discussing Myths, Single BOMs and the PLM Green Alliance

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