Submitted by Mouhamed Ndong on Thu, 12/08/2011 - 15:10
While the help of consultants is probably required, leaving the fate of your ERP project in the hands of consultants may only create a false sense of security. Regardless of the right intentions, software consultants are not all knowing, are the beneficiaries of cost overruns, and in the end have limited control of the key factors that enable ERP success. These are just a few of the many reasons why no consulting firm will guarantee your success (in writing). There is no question that consulting firms want the client to succeed. Nevertheless, in world of ERP consulting make no mistake; the name of the game is “billable hours”. When it comes to ERP software vendors I can say only one thing: regardless of what the sales people claim the software can do, they will be long gone when it comes time to implement.
Any list of the “top five” reasons for ERP failure makes it clear that organizations are more than partially to blame. However, what organization spends thousands or perhaps millions of dollars on ERP with the goal of failing? Furthermore, what consulting firm does not acknowledge the need for more client “project ownership”? In the meantime I sympathize with any organization attempting to find “actionable” project management information in the mainstream ERP media in order to do so. The truth is most ERP books, “free” white papers and podcasts are published by consultants or software vendors trying to sell dependency. No doubt, there is plenty of information on “what to do” but the specifics of “how to do it” are often sorely lacking.
The Street Smart ERP blog is for organizations that want more control of their ERP project destiny. In the end your organization will “live” with the results of a botched ERP implementation, not the consultants or software vendor. Once you bought the ERP farm, you now own it one way or another. In fact the first step in managing ERP risks is the recognition that ERP consultants and software vendors are part of what must be managed.
I know what some of you out there are probably thinking...even if the organization wants to take more ownership; many simply do not have the skills, experience and resources to make it happen. Nevertheless, many practitioners (including myself) have defied this “conventional” wisdom (and fear mongering) for years. In today’s world, depending on which independent think tank you prefer, consulting costs can average up to 60% of the total ERP project budget. Also, given the indisputable benefits of internal ownership, why would anyone run an ERP project the same old way?
This blog is not intended to launch a war against ERP consultants or software vendors; the only goal is to run a better project. Successful ERP does not require the practitioner to become a technology guru, master project planning software or hire more consultants. It is about making “informed decisions” to manage project risks (every step along the way). The reality is ERP projects do not fail overnight; they fail one project management decision at a time. The good news is a high percentage of ERP implementation costs and go-live disappointments are avoidable.
In future entries we will continue to explore the “ERP implementation realities” that drive the business case for internal project ownership. Next, we address real world strategies to do so and specific techniques to mitigate ERP risks. During this time, I challenge many of the old assumptions and beliefs about how to run a successful ERP project. At the same time offer alternate approaches used successfully by many ERP practitioners for years.