What do you do if stakeholders have unrealistic expectations in an ERP project?

Unrealistic goals can derail even the most well-planned projects but this could go in the wrong direction so here’s how to set the stage for success (in my experience): ?? Sit Down with Stakeholders: Begin with a candid conversation about the project’s primary objectives. Ensure that all parties involved have a shared understanding of what the ERP system is designed to achieve. ?? Clarify the ERP’s Purpose: The core function of an ERP system is to streamline operations and serve as a unified source of truth for business data. ?? Set Clear and Achievable Goals ??? Educate on Timelines and Challenges. A successful ERP project is not just about technology; it’s about people, processes, and data coming together harmoniously.

Early ERP project meetings are crucial. Clearly define project scope, timelines, and limitations with stakeholders. Back up limitations with data (e.g., industry benchmarks). Focus on long-term benefits and propose a phased approach to prioritize core functionalities first. Maintain open communication, update stakeholders regularly, and involve them in decisions. This fosters realistic expectations and a successful ERP implementation.

It’s important to understand what is doable and in what time frame so is the communication across and setting the right benchmark and expectations so that it doesn’t create ruckus later as ERP projects usually involves cross functional or even cross organisation folks!

O primeiro passo é uma conversa clara de alinhamentos, ser honesto e realista é fundamental. Temos ERP's extraordinários no mundo, mais todos ERP's v?o solucionar alguns problemas, melhorar alguns processos e criar alguns problemas, n?o existe mundo perfeito, porém, o core da empresa, que é fiscal, contábil, financeiro e alguns outros setores v?o ser bem supridos, mais tudo que é particularidade da empresa é mais viável ter um sistema de apoio interno, isto tem que ficar claro, ERP n?o vem para substituir sistema internos se forem estratégicos da empresa e Excel, ele vem para suprir todo o core da empresa e se integrar aos sistemas internos estratégicos, BI entre outros.

I think educating the right stakeholders is must for satisfaction of any software or process implementation. Purpose should be clearly defined and involvement of all stakeholders is required.

Educate stakeholders about the capabilities and limitations of the ERP system. Provide examples or case studies to illustrate what can and cannot be achieved within the project timeline and budget.

Having a clear and simplified vision of the implementation phases of a system of this magnitude will help the stake holders and the members of the board of directors to have a clear planning of the effort in costs and deadlines, but not only that, but it is important to accompany the project plan with real benefits that are expected to be achieved after the implementation of the new system.

You need to keep it simple and identify qualified gains that will be achieved from the implementation, such as stock reductions, better delivery performance, reduced leadtimes, reduced waste, increased productivity etc. If you can't identify the concrete gains and payback to justify the implementation, don't go ahead until you can.

In an implementation as large as an ERP it is normal that all managers are looking to gain efficiencies, improvements or increased revenue from their business, but this will not always be the case. Sometimes you adopt an ERP to standardize your processes with the rest of the world and unify your business data is a single source of truth. In my experience efficiencies and improvements are achieved over time as the adoption of the new way of working and the maturity of the process develop together.

Effective scope management in ERP projects acts as the rudder steering the project away from the perilous waters of scope creep. It's vital to establish a "minimum viable product" (MVP) approach, prioritizing critical functionalities for the initial rollout. Educating stakeholders about the benefits of this phased deployment—highlighting how each stage adds value and stability—can recalibrate their expectations towards more realistic outcomes. Additionally, employing visual tools like Gantt charts or Kanban boards can help stakeholders visualize the project's scope and progress, making it easier to understand the necessary trade-offs and timelines.

Scope creep poses a significant challenge to effective project management, particularly within the context of ERP initiatives. However, employing a strategy of short, iterative agile sprints, coupled with incremental releases, can effectively mitigate its adverse effects. By adopting this approach, the expansion of project scope is contained, rendering it a non-issue. Integral to this methodology is the cultivation of trust among project stakeholders and end-users. Establishing a rapport wherein stakeholders recognize the ongoing delivery of releases featuring enhanced functionality and value is paramount. Through consistent delivery and demonstration of added value, stakeholders understand the benefits of incremental progress.

You're absolutely right. Scope management is the cornerstone of keeping expectations aligned with reality in an ERP implementation. Here's how it plays a vital role: Prioritization is Key:Clearly define the functionalities and modules that will be included in the initial rollout. Focus on the features that deliver the most significant business value first. This ensures that core functionalities are implemented effectively before expanding to less critical aspects. Taming Scope Creep Educate stakeholders about "scope creep," the tendency for projects to grow in size and complexity beyond their original boundaries. Explain how this can lead to missed deadlines, budget overruns, and ultimately

Yes, there are certainly chances of increasing the expectations while implementing an ERP as the other person will be more aware of the product and will try to get more out of it. Here comes the role of the Project managers or product managers to discuss the scope and make them understand the deliverables and planning done to achieve the goal. For the exceeded requirements, the same must be discussed for incremental timelines and budget.

Keeping your stake holders and board members informed of the progress, issues and possible deviations in terms of deadlines and costs is fundamental, without a doubt you must transmit this information clearly, transparently and periodically, define formal channels and avoid double discourses that contradict the real state of progress of the implementation. Depending on the size of your organization I also recommend defining another channel and format to inform the rest of the employees, probably several of them will be affected, they will feel anxiety and the best way to support them is to include them in the process by keeping them up to date with the news.

Absolutely! A well-defined communication plan is the glue that holds everything together when managing stakeholder expectations in an ERP implementation. Here's why Transparency Builds Trust Regular communication updates on project progress, including milestones achieved and challenges encountered, foster transparency. This builds trust with stakeholders as they feel informed and involved in the process. Managing Perception By establishing a communication rhythm, you control the narrative. Regular updates ensure stakeholders have a clear understanding of the project's pace and direction, preventing misunderstandings that can lead to disappointment or frustration.

Definitivamente es indispensable desde el inicio del proyecto establecer el plan de comunicación incluyendo roles y responsabilidades de todos los involucrados

Uma das a??es que senti falta em utiliza??o do ERP é que se n?o mantiver constancia em treinamentos e cadastro de informa??es, todo a estrutura que é magnífica se quebra e os resultados apresentados n?o s?o eficazes aos olhos de quem observa!

Um plano de comunica??o sólido é fundamental para o sucesso do projeto, mantendo as partes interessadas informadas e alinhadas. Atualiza??es regulares e transparentes sobre o progresso, desafios e marcos alcan?ados ajudam a evitar mal-entendidos e decep??es. Estabelecer um ritmo de comunica??o consistente promove confian?a e colabora??o, fortalecendo os relacionamentos com os stakeholders. Em resumo, investir em um plano de comunica??o eficaz é essencial para garantir o sucesso do projeto.

It sounds easy to say that we will mitigate all risks, but implementations of this size that affect processes, people, technologies and data, you will most likely be faced with unexpected situations. What can I recommend... prepare for worst-case scenarios and go out and seek all the necessary experience and expert advice before you start. Such as, experiences from other companies in your industry, a good pre-implementation assessment exercise, a strong change management strategy and having your tech partners informed and close in case you need their support. With all of the above, we will not be able to guarantee one hundred percent mitigation, but we will have defined the possible cases and mechanisms on how to remediate them efficiently.

You've highlighted another key strategy for managing stakeholder expectations in ERP implementations: proactive risk management. Here's how it contributes to a smoother project journey Transparency Through Risk Identification Identify potential roadblocks that could impact the project timeline, budget, or overall outcomes. Be transparent with stakeholders about these risks, such as data migration complexities, user adoption challenges, or integration hurdles. This upfront discussion sets realistic expectations and demonstrates a proactive approach to problem-solving. Developing Contingency Plans For each identified risk, develop contingency plans that outline mitigation strategies.

Um escopo bem definido, cronograma factível, time de trabalho estabelecido, contingência bem estabelecida s?o necessários ao projeto.

Risk is "anything that can go wrong and will affect program scope and timing". Risks need to be actively updated, discussed and managed. Risk is only one side of the equation - the equation gets complete when everyone discussed the mitigation actions. In all your project control and governance mechanisms, you must have a slide on risk and discuss the mitigations. The simple question to ask, for managing risk is "What can go wrong" And for mitigation "What can we do to prevent it from happening" These two will help you develop a strong risk mitigation approach.

Risk mitigation in ERP projects not only prepares stakeholders for potential issues but also demonstrates proactive leadership. Begin by conducting a thorough risk assessment with your team to identify and prioritize risks based on their likelihood and impact. Transparently sharing these findings with stakeholders, coupled with well-defined contingency plans, can significantly alleviate anxieties and build confidence in the project management process. Moreover, setting up a dedicated risk response team can enhance responsiveness and agility in addressing challenges as they arise. From my own leadership experience, this strategy not only maintains momentum but also reinforces stakeholders' trust in the project's governance.

O faseamento de algumas etapas contribuem para a mitiga??o de riscos, além de melhorar a entrega do projeto, inclusive melhorando o chance management.

Incremental delivery enables organizations to have greater visibility into what is being delivered, decreases risks faster, delivers value sooner and allows organizations to change direction faster.

Meeting stakeholders' ERP project expectations can be challenging. Let me share my experience here.. Recently, in an ERP implementation, stakeholders had lofty expectations. However, upon getting into the project, we realized some were unrealistic. Here's how we addressed it: We assessed expectations, communicated transparently, educated stakeholders on ERP processes, aligned expectations with objectives, managed scope, mitigated risks, maintained continuous communication, escalated issues when necessary, documented discussions, and conducted a post-project review. This worked for us! In a nutshell, managing stakeholder expectations demands a blend of communication, education, and proactive management, ensuring project success.

I have a firm view that and ERP should be a Big Bang rollout. But that doesn't mean it has to be Big Bang for every milestone. From phase to phase, we can allow function by function pull ahead and a cascaded delivery plan that comes together at a milestone. The functions/workstreams doing well can be allowed to move forward and prepare for next milestones in advance. However, it all needs to come together at UAT and SIT stage post which we have to prepare for a Big Bang. If the program is too large or too complex, you can consider multiple go lives, but never more than 2-3.

Adopting an incremental delivery strategy for ERP implementations can significantly enhance stakeholder satisfaction and manage expectations effectively. By breaking down the project into manageable phases and achieving smaller, frequent wins, stakeholders can directly see the value and impact of the ERP system early on. This not only keeps their enthusiasm and support alive but also facilitates smoother transitions and integration. Engaging stakeholders in testing and feedback sessions during these phases helps in fine-tuning the system to better meet organizational needs. Personally, I’ve noticed that this approach not only minimizes resistance but also propagates a continuous improvement culture within the organization.

In my experience, i see that building team’s capabilities is Vital to have a successful ERP implementation, so in addition to aligning goals and setting expectations, building Team’s capabilities should complete the story, the team will lead the project after implementation, and without a powerful team, even a super implementation project would fail

Seen from a System Integrator POV the readiness of the "customer" for a successful ERP implementation is crucial. One example for all is the Business Process harmonization especially for global companies. Harmonizing business processes pre-ERP is vital. It brings clarity, ensures data integrity, reduces costs, eases change management, and supports scalability. This alignment sets a clear path for ERP integration, making it crucial for a successful implementation. An ERP project is a business project (buzzword) owned and driven by the company that "consults" external providers and SI to make this a success. Lack of participation and decision making can delay or kill the project. Nothing new ... but I keep having these discussions.

Avoid the pitfall of trying to meet expectations with timelines and costs with budgets. Projects and Programmes should be set on reality foundations and not on expectations.

Gamification - create some fun and competition within the program team and stakeholders. As an ERP program mentor, I facilitated a sort of inter departmental competition by publishing a functional scorecard. This catalysed function wise micro teams of consultants and functional SMEs trying to keep ahead. Similarly, pre milestones, we published deltas scorecards that clearly contrasted remainder activities across functions and catalysed closures. Try gamification and competition. It works.