“The Real Reasons” ERP Project Fail!!! - Part 2

Note to reader: This is the second in a series of 4 blogs on this topic.

In the Part 1 of “The Real Reasons” ERP Projects Fail, I discussed the concept of a

Confrontational Model of ERP Implementations; how almost all ERP implementation projects are foundationally established and how this model manifests itself throughout the entire project lifecycle.

I am sure many of you reading this are skeptical of my assessment of the “traditional implementation model” that most ERP methodology use; by just slamming people’s names on a project organizational chart and assuming that makes them a successful team. I truly believe this approach intrinsically creates a pattern of conflict at every level of the project that is never addressed and ultimately drives most projects into the failure column when they are assessed.

Still doubtful, huh? Okay, let’s continue the discussion – in this blog I will discuss the conflict that is manifested by all aspects that are often seen as the most critical as part of any ERP Implementation – the Project Team isn’t a Team.

For those of you that have been engaged on an ERP Project in your past you will remember the Project Kick-off Meeting – the official start of the ERP Implementation Project. Well not really – because for about 4 – 6 weeks before that meeting the Client and Consultant companies have been engaged to some degree within specific groups.

Executive Sponsors

Executive Sponsors within the Client and Consulting firm are both outwardly optimistic (or maybe I should say) – cautiously optimistic – for the success of the project. Think about it – if the Client Executive Sponsor has never done an ERP project this can be a career breaker for them if it fails. They are handing over their company’s biggest internal initiative to strangers – who may not be entirely truthful. Harsh but true! This level is going to do a very delicate dance and early on it can feel awkward for all involved.

The Consulting Company’s Executives will have a “short-leash” on the Client if they don’t address the project risks and issues that are leading to a lack of decision-making. These will be documented, reported and communicated at nauseum; but this will ensure that they are protected from future criticism or push back from the Client. The consulting firm will always have a “glass is way less than half-full” when it comes to discussing status because they have seen way too many Client Executives that “stick the head in the sand” when it comes to dealing with problems.

Project Managers – Client and Consulting

Client and Consultant Project Managers have been working together on the project planning phase during that 4 – 6 week period – did you catch that – “working together”. Hopefully, the Client Project Manager has done something this important, complicated, and challenging in their past – because if not – you're in trouble. You need professionals in these roles – not individuals looking to "learn" how to do an ERP Implementation.

Don’t assume that you are getting expert Consultant Project Manager assigned to your engagement – that’s not always the case. Hopefully you get assigned a good one and if you do great; but now the next question can the two Project Managers work together?

Yes, they have project deliverables (I will outline details in another blog), but more importantly during this time they are establishing the “working relationship” example for the project team. These leaders set the tone for the project team – don’t believe me – watch them in action. Who is the dominate PM? Are they working effectively? How do they deal with disagreement? What are their communication styles? Do they respect each other? Notice how I didn’t say like each other – that really doesn’t matter – we are implementing an ERP application here not picking out curtains! I can go, but ultimately if there is conflict, even if it's just “felt” between these two leaders then your project will be off to a very bumpy start.

Project Team Members – Client and Consulting Teams

Now we get to the most important people on any project – the Client Project Team Members.

I want to let you in on a little secret – while you the Client are putting a group of people from various departments of your organization; a group of people have probably never worked together; a group that have likely never done an ERP project; and if some have while others haven’t that could be an even bigger challenge – because the individuals with past ERP project experience could be bringing along baggage from a bad project in there past.

This group probably haven’t had any application training and they have no idea how much work is going to be required to implement the ERP application (because you have no idea either) and they now is group has to magically become your expert ERP Project Team.

Oh, and by the way the consulting company is the process of doing the same thing with their group.

Oh, I am sorry Mr./Ms. Client, were you under the impression that the consulting firm has a project teams sitting around waiting to be assigned to your engagement – well that’s not how it works. In a lot of cases the consultants may have never even met each other prior to this assignment, they all will have various skill levels and experiences, they probably have never worked with the assigned Project Manager, and this group of consultants need to figure out how to become a team as well.

Now it's the first official day of the project and all these people meet one another for the first time at the 90-minute kick-off meeting. Miraculously they are supposed to become this highly efficient project team by the end of the session - good luck with that.

A key part of kick-off presentation is to "educate" the Client Project Team. They "learn" (for the first time) everything (at a thousand-foot level) they are supposed to do and accountable for during the entire ERP implementation. Does the term “deer in the headlights” mean anything to you? Because even thought they don’t say it – that is the expression on their faces.

In order to be more efficient, most ERP project methodologies have (unfortunately) removed the time and effort associated to first making the Client Project Team (including Executive Level) into an effective group. This focus needs to be re-instituted for this Client Project Team; it this then needs to be expanded to include the Consulting Project Team – and this entire group needs to go through logical phases of forming, storming, norming, performing, and adjourning that make any group a Team.

Since this rarely happens there is now more than ever the need for a Client-Side Project Advocate with the expertise to align, support, engage, manage, and lead this entire group to ensure the successful delivery of your ERP application.

Remember, it is always the Client’s accountability to deliver the ERP application to the company – John Talio Consulting exists to be your Client-Side Project Advocate to ensure that success. Feel free to contact us and we can help create the highly effective ERP Project Team that client must have.