Back in May of 2015, I published “When ERP projects go wrong” which was the 3rd in my ERP insights series. This was by far the most read of my posts, suggesting that it struck a chord with the Owners, Directors and CEO’s in the Small & Medium Enterprise (SME) space I write for. Having identified what, I believe to be the common causes of the problem, logic suggests that I should now turn my attention to the recovery process.
Here’s a recap of the 5 common causes of a rogue ERP project.
- Lack of clarity of the objective
- Lack of ownership
- Lack of proper resourcing
- Scope creep
- Ineffective change management
In defining your Implementation Project Recovery Plan, there are some basic steps that will help you get the outcome you need.
Last year I published The big 5 ERP selection errors a CEO should avoid and when Bob, a colleague in the USA saw it on LinkedIn, he was quick to confirm from his experience the veracity of my observations and in subsequent conversations gave me great material for this article from a recent project which I happily plagiarise here with his permission.
Having selected software to run your company the next challenge is getting it implemented and not surprisingly there is a strong correlation between the issues that cause grief in the selection process and the issues that can derail the implementation.
The big 5 for failed implementation projects are:
• Lack of clarity of the objective
• Lack of ownership
• Lack of proper resourcing
• Scope creep
• Ineffective change management
The latter is so destructive that even if you get the others perfectly executed you could still dismally fail on this point alone. It is an insidious fact that people typically don’t like change and will do whatever they can to avoid it or minimise its impact on them personally. No wonder so many companies report less than satisfactory outcomes from ERP Implementation projects.
After 30 years in the ERP industry, one starts to get a good grasp of what goes into a successful ERP implementation and the pitfalls to avoid. I’ve pulled together some tips that CEOs should consider before embarking on an ERP project. If you can avoid these top five common mistakes, you’d know that your project is off to a good start.
Few weeks go by where I do not take a call that goes like this; “Hi, our company is using “xyz Software” and it is not doing what we need it to do for the business. Can you tell me what it would cost to install your software?