Some advices to organizations before starting an ERP implementation

In The Netherlands we have a program on television called ‘Ik Vertrek’ ('I'm leaving'). I would like to summarize it as a program in which you see how people build a new life abroad with often too little budget, a plan that is much too simple and a practical implementation that mainly contains many setbacks. Usually the outcome is viable, but certainly not as previously thought.

It reminds me of what I see quite a lot during ERP implementations. Organizations often start enthusiastically on their ERP projects. But when I hook up at a later time, I see that the tone has usually changed. When I ask how it's going, I usually already know what kind of answers I will get back:

1. The customer expected more from the implementation partner.
2. The implementation partner had expected more from the customer's key users. It also appears that key users do not have enough time to deliver what is necessary for good progress.
3. The project is no longer on schedule.
4. The key users do not seem to have a good idea of what their role entails and what is concretely expected of them. They also do not get the promised time they need for the project.
5. Testing has not been done properly, which creates many problems that have to be solved ad hoc.
6. The steering committee lacks the information to make good decisions, a lot of management is done 'by feeling' and it appears to be difficult to gain a clear insight into matters.
7. Because of all these things, the focus is completely on bringing the tool live. It is known that user adoption determines the success of the solution, but there is no time or budget for that anymore.

If you search Google for 'failed ERP implementations', you will even get many examples where people eventually stopped (and therefore sometimes have to write off millions). I think many of these problems arise because, as with the “Ik Vertrek" program, implementations are thought too easily at the front end. In fact, I sometimes almost get the feeling that some ERP implementations are started from the following formula:

We almost never do it * many ERP projects run out of time and money and do not deliver what was planned in advance = we will be fine!

But let's be honest: this formula doesn't make sense. That is why I sometimes hear managers and project members who, during implementations, after a while have the feeling that they are on board a rudderless ship. And then hope that the wind will blow favorably. But of course you don't want to implement with so little grip.

Is it all negative then? No, there are also ERP implementations that are going (quite) well. But still, in general I see many organizations struggling. And that is precisely why you have to prepare yourself very well before you embark on such a process. And that starts with management. Think of:

1. Management realizes (preferably in advance) that ERP implementations can be complex and risky. They also realize that the end result will be their solution and that they will live with the consequences for years: positive or negative. This is not to start the project negatively, but with this approach you think three times more about the required direction and good risk management.
2. A realistic plan is made, including mechanisms for proper steering. This plan doesn't focus on the technical part only but also includes clear strategic company business goals that people need to achieve with support of the ERP application. The project frameworks are based on this plan and the business goals always remain the starting point for decisions.
3. Management realizes that implementation is not just about implementing the tool itself. It is precisely the use of the tool (the human being) that determines success, which is why we have also thought about user adoption and how to prepare users for the new situation.
4. The management deploys the right people on the project and prepares these people for the job. They ensure that the project roles are clear to everyone and really free up project members for the project.
5. By thinking about the above points, management should be able to answer the following question with 'yes': are we as management and organization ready for this job? If not, what should we do first to create a mature organization that can handle the ERP implementation?

Is this the success formula with which you solve everything? No, certainly not. But paying attention to these matters will ensure an ERP implementation with clear frameworks and correct steering moments. And that greatly increases your chances of success. And believe me, this pays for itself twice over.