Everyone wants a successful project
I claim that practically every decision-maker knows at least a few ERP projects that went wrong, and the attitude toward them is often humble, even tinged with fear. Every member of the leadership team and every project owner wants the ERP transformation investment to succeed.
ERP projects require leadership – but who dares to take the lead?
The problem is that very few leaders feel drawn to a project that seems technical. It may feel unreasonable to invest precious time in a project when there are many other business opportunities that seem more important. It may seem excessive that the project already has an expensive external system integrator and a project manager, yet still requires additional resources from the line organization and ongoing time and effort from leadership.
From a business leader’s perspective, it can be baffling that the organization’s IT leader doesn’t simply handle the project together with the integrators and project management team. These thoughts are understandable and, in my experience, surprisingly common. The project is often seen as something to outsource to the integrator or the IT unit—somewhere else, off your desk.
Leadership determines the direction of an ERP project – 6 practical tips for success!
1) Don’t outsource the ERP transformation to IT or treat it as a mere technical upgrade.
An ERP project is typically a business transformation aimed at delivering business benefits. If there hasn’t been a discussion about the project’s relationship to company strategy and future business goals, that conversation needs to happen. A technical upgrade is only part of the project, and justifying it solely on technical grounds can be costly if the project gets deprioritized and delayed.
2) Don’t delegate change impact analysis entirely to the change manager or project manager.
It’s eye-opening to understand where the transformation will have an impact. Rarely does it affect only systems. It typically changes processes, reporting structures, tools, roles, assumptions, and even reward systems. Understanding these impacts is essential for acting as a project owner or sponsor and identifying transformation risks.
3) Don’t assign the main sponsor role too low in the organization.
The more complex and high-risk the project, the higher the sponsor (or owner) should be in the organization. Risk factors include large scale, significant change impact, expected resistance, and lack of experience with similar projects. A challenging project needs support from those with real decision-making power.
4) Don’t outsource the project owner role to the project manager.
The project owner or main sponsor has a special role in communication from the start. They must be the face of the project and explain to other sponsors, managers, and the entire organization why the project is happening and what benefits it brings. Ultimately, they are accountable for achieving those benefits. The project manager cannot fulfill this role because they do not represent line leadership.
5) Don’t outsource the project manager role to the system integrator or line management
The project owner must ensure the project has an experienced internal or external project manager with overall responsibility. No system integrator or line manager can replace a dedicated project manager from your organization who oversees the whole picture and protects the buyer’s interests.
6) Don’t assume an external integrator eliminates the need for internal resources.
Every ERP transformation requires not only external resources (often from system integrators) but also a significant number of internal experts who know current systems, architecture, and processes. The project also heavily involves business leadership, project management, communications, and change management professionals. Don’t expect the integrator to deliver a ready-made system without strong internal involvement. Assign capable people to the ERP transformation—they are building the company’s future.
A project manager needs strong ownership and sponsorship for support
Even the best project manager needs a knowledgeable project owner, active sponsors, and a steering group for support. The fact is, a project owner or sponsor can, in the worst case, significantly hinder the project. On the other hand, a well-functioning owner, sponsor, and steering group can be a key reason why a project succeeds. This is especially true for challenging projects.
I encourage you to consider how, as a line manager, you can best support the project. If you are in the role of project owner and lack prior experience, I recommend starting with a few sparring sessions with an experienced project manager or project owner. That investment can pay off many times over! Take a moment to think: If you were responsible for a complex ERP transformation, who would you want by your side?
I am happy to help project owners, sponsors, and steering group members succeed in their roles in leading large ERP projects!