In this our final post based on Panorama Consulting’s 2013 survey of 172 companies that deployed ERP systems recently, we come to ‘lessons to be learned’ from those firms who did not execute their deployments within their anticipated budges for either time or money. Their 5 key reasons and suggestions for remedy follow, buttressed in some cases by our own, usually matching, observations:
- Budgets and timeframes that do not take into account business process improvement, organizational change management and customizations. To correct this they suggest companies create a business case and devote adequate resources to ensure accurate project planning.
- Leadership teams that choose systems based on reputation or vendor sales pitches rather than systems that truly fit their “future state” requirements. To correct this, companies should leverage independent (outside) resources to conduct full requirements gathering, business process improvements, and software evaluations and negotiations.
- Leadership teams that fail to anticipate the magnitude of the project and the impact it has on end-user productivity and / or morale both prior to and following software implementation. To correct this management should first create a business containing goals and measurement tools [KPIs, or key performance indicators – measuring the handful of things that really matter in your firm] and ensure strong management planning and execution.
- Non-customized training that is based solely on the technical aspects of the system and fails to train users on new processes. The solution of course is to engage your implementation partner to perform training customized to each key work area and its processes. This is training that is anything but generic.
- Lack of concerted communication to end-users about the reasons behind the implementation, the anticipated benefits stemming from successful adoption and the ways in which each individual end-user and executive will affect project success or failure. The solution: create and follow a comprehensive organizational change management plan.
Our reading of Panorama’s survey results only serves to reinforce our own observations after 25 years of ERP implementations, and their conclusions generally match up with our own. Hence, we are pleased to deliver this four-part synopsis of their survey to our readers.
To read the full text of their 21 page report, you can access Panorama’s research results here. You may need to register (it’s free) first. And of course, your input and comments are always welcome in the Comments area of our blog.