Organisations introduce new ERP solutions for various reasons but irrespective of the motive, project success or failure is largely attributable to the quality of Project Management. Project Sponsors may participate in the selection process and will promote the solution to the organisation whilst the deployment team plays it's role, but without strong effective project management the project may overrun, exceed budget or fail to deliver the expected benefits.
Problems associated with ERP projects
The decision to deploy a new ERP solution is normally taken at a strategic level and the role of the Project Manager (PM) is largely to ensure the project is delivered successfully on time, within budget and to the required standard. However, ERP projects are renowned for high failure rates, often for reasons outside the control of the PM. These may include: underestimation of software and hardware cost, time required and degree of outside expertise needed; a lack of awareness of the changes required to business processes; difficulties controlling project scope; insufficient user acceptance testing and training; problems associated with change management issues affecting corporate culture and working practices.
ERP change projects are complex and hard to manage so what are the PM's primary duties to ensure success? The PM is expected to define deliverables, assess resource requirements, create the project work plan and manage the delivery process. They work closely with internal customers gaining an understanding of business requirements, developing effective working relationships and ensuring that the delivery team works closely with the business and can deliver change. The successful PM needs strong management skills, the ability to matrix manage large project teams and motivate them to ensure tight deadlines are met. Highly developed communication and presentation skills are essential as they will interface between the delivery team and the business and will be required to update and convince the business about progress and gain sign-off at various stages.
The need for strategic business change
ERP implementation projects are often dictated by the need for strategic business change, embracing corporate culture, operations and the way the business perceives itself. This explains why the world's most successful organisations are attracted to ERP market leaders such as SAP and Oracle as they believe this will confer world-class status on the organisation. An underestimation of the complexities and costs associated with ERP change programmes have been seen to cause serious problems for a number of hitherto successful organisations that have chosen this path and this has sometimes led to litigation as the functionality promised has proved illusory or Systems Integrator costs have spiralled dramatically.
The successful Project Manager is worth their weight in gold
So how can the PM reconcile the project goals with what is realistically achievable? Although the PM may not be involved with the strategic decision process they will take part in project planning including resourcing, technical infrastructure requirements and expected time lines to ensure the commitments agreed to are realistic. Once the project has been agreed then the PM will assume responsibility for delivery and the success/failure of the project will be largely in their hands. This is where the quality of their leadership will be visible and their ability to successfully drive the change process will be reflected in the success or failure of the project. The successful Project Manager is worth their weight in gold.