Here are the 5 reasons ERP Implementations Stall

Let's face it, you were thrilled to get a new ERP system up and running in four months. But now, more than 10 months later (or more), you're in a mess. Deadlines are missed, budgets are blown, and your team is frustrated, exhausted and stressed out. Your ERP implementation has totally stalled out and is close to failure. How did this happen?

If this scenario resonates with you, let’s delve into some potential explanations for why your ERP implementation may not have unfolded as anticipated or as promised by your partner. You can't solve the problem until you've fully understood the root causes.

OK, let's start with the partner. Sure, you could blame them for not delivering on their promises. Maybe they didn't assign their best people to your project. Maybe they didn't manage the risks well. Maybe they didn't communicate clearly. But let's be honest, this is their business.  The last thing they want is a failed project.  Realistically, there may be some shared responsibility.  To move forward more successfully, you must look at how you and your team played a major part in this dumpster fire. 

Scope creep

One of the biggest culprits is scope creep. You signed a contract for a certain scope of work, but then you kept asking for more bells and whistles. You wanted a Ferrari, but you paid for a Ford. That's not how it works. Your partner will work on a "ask and ye shall receive" model.   If you or your team are asking for more, they're going to fulfill that request and bill you for it.   Keep the team focused on your original scope and focus on the essential features that will bring true value to your business.  If you find an area where you really do need more, make sure you are getting a change order in advance of the work being done and have a proper approval process in place, so you have no surprises.

Lack of alignment

First, internally, did you have everyone on the same page about the goals and benefits of the project? Did you get buy-in from all the stakeholders, including the end-users? Did you address any resistance or concerns along the way?  If not or you aren't sure, your lack of ERP readiness has impacted your project.  There's a process you can start before diving into an implementation to assure you ready to tackle the ERP.

Then there's this pesky thing called ERP Partner Alignment. The gap between what you think you bought (your expectations) and what was delivered (the partner's promises) needs to be thoroughly examined. The statement of work should unambiguously define the deliverables. Take care to properly interpret the language used by the partner to prevent any mismatches in understanding. This is where assuring you have a partner you are comfortable with is critical.

Bonus Note: Make sure you understand any packaged implementation offering. It will be a lower cost so you won't receive the white glove services you may be expecting. That doesn't mean it's bad - you just need to understand exactly what you are buying.

Lack of commitment

Did you realize how much work and time this project would demand from your team? Did you allocate enough resources and support to make it happen? Did you prioritize the project over other tasks and distractions? Many clients underestimate the level of involvement needed for a successful ERP implementation and again they haven't put all the ERP readiness steps into action. Be sure you clearly understand the commitments necessary and that you are fully prepared before you start.  Otherwise, at best, your consulting expenses will skyrocket or worse you will become an ERP failure statistic.

Lack of leadership

This one is a little harder to look directly in the face as we often have to look into the mirror. Who's leading this project? Do they have the skills and the authority to keep your team and the partner aligned? Are they involved at the right level? You need a leader who will drive the project forward, remove any roadblocks and assure everyone is working towards the same goals.   Watch out for management by committee.   Likely, different departments have unique needs and different objectives that may conflict.   You need a single executive sponsor who can pull everyone together.

Poor planning

Your partner has a project manager so you're good, right? Wrong. Don't rely on the partner to plan everything for you. You need to collaborate and communicate to find the best solution for this project. There are a lot of factors and uncertainties that you need to consider and address.  Your team has competing priorities every single day.  They'll need help to balance that and ensure the project stays on track.

Bonus hint: I'm not advocating for you to manage the partner tighter. They know what to do. Your internal team needs to be very tightly managed and while your partner can assist. You need someone to manage your internal team.

Conclusion

To summarize, choosing a partner for your project requires careful consideration and preparation. Your partner is as important, if not more important, than the software. However, you have responsibilities that your partner cannot control. You need to have a clear vision of what you want to achieve, a strong leader who can align all the stakeholders, and a detailed plan that covers all the possible scenarios and risks. Understanding your ERP readiness is critically important. By doing so, you can ensure a successful and smooth collaboration that benefits both parties.  It’s a lot of work but it’s also what must happen for ERP Success.

How We Help

OK, so what's next? If you are more stressed after reading this, let's have an honest conversation about what you can do to prevent or recover. Elliott Clark Consulting is here to assist with client-side implementation support. While we don't act as system integrators or sell software, our wide-ranging experience in managing complex projects across various industries enables us to guide you towards successful project completion and adoption. We provide honest, direct guidance, and not just what you might want to hear. Our expertise covers ERP readiness, strategy, internal project management, and change management, ensuring that you start on the right track or recover swiftly. By collaborating with you and your partner, we're committed to achieving mutual success. Our role is to be a trusted advisor who grasps your vision, bolsters your leadership, and helps execute your plan.