How to Save Your ERP Implementation Project

Back when implementation started, you were excited about finally getting rid of your company’s outdated technology and the opportunity to improve your business’s bottom line.

Fast forward to today: you’re quickly approaching the projected Go-Live date and nearing or exceeding your projected budget, but the project isn’t where it needs to be. Or worse, you have already passed the planned Go-Live date, and any buy-in you once had from your team or company leadership is noticeably dwindling.

Don’t worry – you’re not alone.

60% of ERP projects fail, either because they didn’t hit their target deadline or went beyond their budget.

While it can happen any time to any business decision, it’s very much possible to prevent by noticing the signs.

Here are a few you absolutely need to know:

Warning signs of ERP failure

●????Weak project management. Perhaps you thought that the project could be managed internally, but your staff is inexperienced or not able to manage effectively.

●????Diminishing morale. Has a key decision maker, who championed the project from the beginning, left the company? Without that key person to support, it may be challenging to keep your team motivated as time goes on and project milestones aren’t being met.

●????Scope creep. You’ve probably experienced this scenario before - the deliverables on a project start expanding from what was originally agreed upon, but the project schedule or budget hasn’t been adjusted to accommodate the change. Has the project experienced any changes or diversions that are impending completion?

You may have seen these or other risk factors alerting you to potential project failure. Now is the time to take action and rescue the project.

What to do if an ERP is failing (the 3 A’s)

Step 1. Assess the situation starting with the ‘why’ behind the implementation. Ask yourself why you chose this ERP system. What problems is it meant to solve and is it providing the solutions you need?

Step 2. Analyze your approach to change management. Did you have the buy-in from key staff on the project? By focusing on change management early on in the process, you can determine how ready your employees are to embrace new technology and arm them with the knowledge and tools they need to feel confident during the implementation process.

Step 3. Alter your approach to implementation. There are several best practices that are critical to ERP implementation success, including strong project management, a data mitigation strategy, and engagement from other executives. System testing and a focus on business process management can also help lead your business to a successful ERP implementation.

Fortunately, it’s not too late to take action if your ERP implementation has failed. You can exercise one of these two options to rescue the project.

1. Hire a project manager. Ideally, your project manager has experience in ERP implementation. If not, hire someone with experience in this type of project. Your project manager should be in charge of the following:

• Develop an action plan with input from all key players in the implementation process
• Schedule mandatory project status meetings that all key players can attend on a regular basis. These meetings should have an agenda with clear next steps to follow.
• Prevent further disruptions to the plan by addressing any concerns employees have for the remainder of the project. Strong project management requires the ability to develop relationships with everyone on the team as well as the software vendor so that they feel comfortable with the decisions made.
• Facilitate conversations about which functions are critical and which functions can be pushed to a later phase.
• Consolidate documentation for easy access by all users. Creating a shortcut on a server that all users can access will provide transparency and ensure everyone has access to the same information as needed.

2. Hire a consultant. Perhaps you don’t have the time to hire and onboard a project manager. If you find yourself in this predicament, consider contacting an experienced expert to partner with you on these tasks and manage your ERP rescue. In addition to taking on the responsibilities mentioned above, a consultant may be able to provide continued support after your Go-Live date.

Now that you’ve learned how to recognize an ERP failure and the steps you should take if your ERP is failing or has failed, we hope you feel better prepared to tackle the rescue head-on and turn this project into one of the biggest accomplishments of your career.

Softype has experience in over 450 implementations across 26 countries. We can provide software solutions that support your ERP implementation and assist with bringing back on-track implementations that did not go as expected.