Every ERP implementation is unique and presents diverse challenges for internal teams working to keep the project on track. Even experienced project sponsors need some support to ensure go-live is a success.
Many people wrongly assume that the software vendor’s or implementing partner’s “project manager” will manage the implementation. However, they are typically focused solely on managing technical work for their own resources, and not managing the client’s resources or ensuring client-side tasks get done.
In most situations, the internal PM efforts begin with a project sponsor who is pushing for a system change or upgrade. Often, this individual flexes into the role of internal Project Manager as it progresses, which may fall to the controller, IT lead, or an analyst in small to midsize companies. While this works for many organizations, others lack the capacity to internally backfill daily responsibilities. If you choose to undergo the process alone, just know your team will be shouldering all the ERP project responsibilities in addition to their day jobs. You will also be asking your team to become implementation experts in their free time, especially if this is their first ERP transformation.
One thing is for certain: without an internal PM, your business runs the risk of a failed ERP implementation due to misaligned goals, overlooked milestones, and additional scope creep resulting in a project coming in far over budget.
If your team lacks the resources or experience, you have a couple options. You can, of course, hire a part-time or full-time project manager who has led one or more ERP implementations in the past. Prior experience in your industry and with the software you are implementing provides extra value. Even then, someone with deep experience from your company must stay involved with the project, even with a temporary PM. Otherwise, key decisions could be made in a vacuum that no one realizes would impact the usability like reporting, costing, workflows, etc.
However, the best and most effective option is to engage an independent ERP consulting firm that provides client-side implementation services. This gives to access to a team of specialists who bring expertise in the various aspects of an ERP implementation. They can bring best practices and lessons learned from hundreds of implementations to ensure your project is a success. While hiring an outside resource does not remove the need for internal efforts, it does significantly lessen the burden. An external resource who has dedicated their career to ensuring ERP implementations go right will deliver value to your project.
The Complete Guide to Avoiding ERP Implementation Failure
ERP implementations have several moving parts that must all come together cohesively in order to be successful. That success is a direct result of effective internal project management.
Whoever steps into the role of internal project manager (PM) is responsible for oversight and execution of the project. Those tasks fall under the categories of Initiation, Planning, Execution, Testing & Training, Deployment, and Ongoing System Optimizations.
Before the project even begins, the project manager should work with key stakeholders and Subject Matter Experts (SMEs) to document ideal outcomes and the scope of the project. Once the objectives are defined, the PM can gather their implementation team to kick off the project.
After project initiation, or in conjunction with initiation, the PM should develop a clear project roadmap outlining each phase of the implementation alongside a proposed timeline for rollout. At this point, the PM will allocate resources based on availability and identify gaps in their support. Part of that process will involve assigning roles to project teams and ensuring members understand what will be expected of them and are properly prepared.
One of the most important roles a PM plays is maintaining control over the entire implementation. This includes budget tracking, software configuration, scheduling, and more to keep the project on track. The project’s success, or failure, is a direct result of the project manager’s ability to execute goals and maintain quality control at each major milestone. Internal resources fall into this category, with employees and the project team looking to the PM for guidance and next steps.
This step is one of the riskiest aspects of an ERP implementation because it is the most crucial to having a usable new solution. If your users are unwilling or unable to work within the new application, the result is a failed implementation. During this step, it is the PM’s responsibility to document use cases and ultimately confirm them with the SMEs who are leading the effort to ensure accurate processes are implemented.
Alongside use case development, the PM is also responsible for ensuring training documents are created. End users need a program for familiarizing themselves with the system and validating the processes configured by the software developers. Additionally, the PM must hold the team accountable by setting up a process for ensuring training gets completed. By taking responsibility for the process from start to finish, the PM can make updates, fill gaps, and ultimately ensure the plan for implementation is working.
Leading up to and all the way through go-live, the charge is led by your Project Manager. It is the PM’s responsibility to ensure all major milestones are achieved at the right pace. Once it is time to go live, the PM will rally the team in order to flip the switch, overseeing all day of activities to correct any mistakes and push the project over the finish line.
As part of their initial duties, the PM would have developed a roadmap, carefully outlining a realistic approach to ERP implementation. This includes the functionality needed at each phase, from lead up to go-live and well beyond. By go-live, the business and their vendor or implementation partner will have developed a strong relationship geared towards long-term success. It is important to continue fostering and leveraging that relationship to make incremental updates to your system over time. The work never stops! And your PM can ensure the business’s needs are all met along the way by working with departmental heads and the vendor.
Whether you just started your ERP project or are mid-implementation, the experts at ERP Advisors Group can help! Our experienced client-side implementation consultants will ensure your business goes live and achieves success with your new ERP. Schedule a free consultation to get started today.