Developing a Plan for Your Municipality’s ERP Journey: A Strategic Guide

Your municipality has reached a pivotal moment—it's time to replace your Enterprise Resource Planning (ERP) system. Whether due to vendor support ending or operational inefficiencies, this transition marks the beginning of a complex and resource-intensive journey. The good news? You’re not alone. Hundreds of municipalities are facing the same challenge.

But before rushing into procurement and budgeting, municipalities should strategically pause and develop a comprehensive ERP plan. Without a structured approach, your project could face cost overruns, delays, and unmet expectations. Here’s what your ERP plan must include:

1. Governance: Establishing Leadership and Decision-Making

Effective ERP projects require strong governance. Key considerations include:

• Appointing a Project Sponsor to champion the initiative.
• Defining whether a steering committee or project team will oversee decisions.
• Establishing a decision-making framework to define who can make decision and when, and provide mechanisms for resolving conflicts between stakeholders.

2. Project Management Leadership: Avoiding Common Pitfalls

ERP implementations demand dedicated leadership. Common mistakes include:

• Assuming an existing executive can manage the project alongside their full-time duties.
• Hiring a certified project manager without municipal ERP experience.
• Deferring to the system implementer to provide overall ERP project management.

Your plan should define how the project will be managed, including costs for securing professional project management expertise with municipal ERP experience.

3. Go-Live Strategy: Big Bang vs. Phased Approach

Municipalities often debate how to transition to the new ERP:

• Big Bang: Full system transition all at once, requiring intensive change management.
• Phased: Gradual rollout, minimizing risk but extending the transition period.

Selecting the right approach early helps setup the basis of the ERP plan and can ensure smoother implementation.

4. Implementation Timeline: Accounting for the Full Journey

Many municipalities underestimate the time required for:

• Procurement and contract negotiations
• System customization and configuration
• System testing and quality assurance
• Training and change management
• Setting aside contingency and buffer time

Planning for realistic lead times sets the basis for project expectations.

5. Data Migration: Determining What to Keep

When asked how much historical data they want to migrate, municipalities often say, “Everything.” However, migrating decades of data is costly and complex due to:

• Inconsistent legacy data structures
• Data gaps between legacy and new ERP systems
• Lack of data governance

Define which data is truly essential before finalizing migration plans will ensure resources are focused on strategic outcomes.

6. COTS vs. Customization: Finding the Right Fit

Your ERP can follow two primary approaches:

• Commercial Off-the-Shelf (COTS): Uses industry best practices with minimal customization.
• Customized ERP: Allows deeper control but increases complexity and long-term costs.

Deciding on the approach that will meet the long term needs of your municipality is crucial before proceeding with procurement.

7. Software Costs: Beyond the Subscription Fees

Software licensing seems straightforward, but municipalities must consider:

• Who requires a license?
• Will additional module fees apply?
• What costs will be incurred during implementation?
• What are the projected annual cost increases?

Anticipating these expenses avoids budgetary surprises and helps municipalities account for costs across multiple budget cycles.

8. System Implementation Costs: Expecting the Unexpected

ERP implementations require the support of implementation consultants that are most commonly billed based on time and materials, meaning:

• Scope changes increase costs.
• Project delays add expenses.
• Customizations increase costs.

Your plan must account for planned? system implementation costs and include a contingency budget to account for unexpected costs.

9. Project Team Resourcing: Investing in Success

A common lesson learned: Municipalities wish they had a full-time dedicated project team.

• Part-time project members lead to delays.
• Full-time resources improve implementation success.

Securing dedicated resources should be a priority in your plan.

10. Project Team Training: Building Internal Capacity

Long-term ERP success depends on trained internal staff who can:

• Manage the system post-go-live.
• Support ongoing upgrades and improvements.

Setting aside a training budget ensures the ERP remains sustainable.

11. Hypercare: Providing Post-Go-Live Support

After launch, an intensive support phase (Hypercare) is required, where:

• Municipal staff and system implementers provide rapid issue resolution.
• A structured support plan is in place for at least two weeks post-go-live.

Properly planning for Hypercare supports ERP user adoption and is a key component of the organizational change management plan.

12. Ongoing Support & Resourcing: Planning for the Future

Post-implementation, municipalities need:

• Internal support staff to manage day-to-day operations.
• Managed Service Providers (MSPs) for advanced system troubleshooting.

Allocating resources (e.g. people and funding) for these roles ensures long-term ERP success.

13. Budgeting for Your ERP Investment

Your ERP plan should summarize all associated costs, including:

• Software and licensing fees
• Implementation and consulting costs
• Training and support budgets
• Contingency funding

This financial overview will help executive leadership and council understand the full investment required before proceeding.

Need Help Navigating Your ERP Journey?

If you’re reading this, chances are you’re starting or already in the middle of your ERP project. Developing a comprehensive ERP plan can be overwhelming—especially without prior implementation experience.

That’s where Hawforce Consulting Inc can help. With over 25 years of municipal technology leadership experience and firsthand municipal ERP implementation expertise, we provide:

? ERP Planning Accelerators

? ERP Requirements Definition Accelerators

? Procurement Leadership

? Project management leadership

?? Book a complimentary ERP advisory session to discuss your needs. Email us at [email protected] to get started.