How do you control ERP project scope and budget?

1 Define your goals and scope

Before you start your ERP project, you need to have a clear vision of what you want to achieve and how you will measure success. You also need to define the scope of your project, which includes the features, functions, and modules that you need to implement. A well-defined scope will help you avoid scope creep, which is the tendency to add more requirements or changes during the project that can increase costs and delays. You can use a scope statement or a project charter to document your goals and scope and get approval from your stakeholders.

2 Plan your budget and resources

Once you have your goals and scope, you need to estimate how much your ERP project will cost and how much time and resources you will need. You can use various tools and methods, such as historical data, benchmarking, or bottom-up estimation, to calculate your budget and resources. You should also include contingencies and reserves to account for uncertainties and risks. You should also allocate your budget and resources according to your priorities and dependencies. You can use a work breakdown structure (WBS) or a Gantt chart to plan your budget and resources and track your progress.

3 Communicate and collaborate

Communication and collaboration are essential for any project, but especially for an ERP project that involves multiple stakeholders, teams, and vendors. You need to establish clear and consistent communication channels and protocols to ensure that everyone is on the same page and informed of any changes or issues. You also need to foster a collaborative culture and encourage feedback and input from your users, customers, and partners. You can use various tools and platforms, such as email, chat, or video conferencing, to communicate and collaborate effectively.

4 Monitor and control

Throughout your ERP project, you need to monitor and control your scope and budget to ensure that you are meeting your goals and expectations. You need to measure your performance and quality using key performance indicators (KPIs) and metrics that align with your objectives. You also need to identify and manage any changes or risks that may affect your scope and budget. You can use various techniques and tools, such as change management, risk management, or earned value management (EVM), to monitor and control your ERP project.

5 Review and learn

After you complete your ERP project, you need to review and learn from your experience and results. You need to evaluate your scope and budget against your goals and expectations and identify what went well and what can be improved. You also need to document and share your lessons learned and best practices with your stakeholders and teams. You can use various methods and tools, such as surveys, interviews, or reports, to review and learn from your ERP project.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?