Setting the Stage for a Successful ERP Implementation

Bob Mitchell is a Partner with CIO Partner, Inc. (www.cio-partner.net; bob.mitchell@cio-partner.net). Bob has over 20 years of leadership experience with direct experience leading ERP implementations, software development, and as a CIO of a public company.

In my opinion, realizing the substantial value of a new ERP system begins by making sure the ERP implementation is led as a Long-Term Corporate Process Change Initiative and NOT an IT Project. Any other approach will ultimately lead to major cost overruns and unrealized expectations.

Successfully implementing and realizing the substantial value of a new ERP system is absolutely attainable, but not a foregone conclusion. As a CIO who oversaw an ERP implementation that went live on-time and on-budget as well as having been responsible for turning around a different ERP implementation that was 800% over budget and 3 years late, I can attest to the main driver of success in ERP implementations. It starts at the very beginning.

Many companies treat the implementation like deploying an upgrade of Microsoft Office, i.e. install it, provide some training sources, go-live, and let the users adapt. This approach will absolutely fail with an ERP implementation. It is nearly irrelevant to success that the largest part of the implementation expense usually involves purchasing licenses and performing IT work. Success starts with the people who manage the business, not IT. To set the stage for success, you must answer/do the following:

• Who is the most senior executive sponsor? This executive must (1) be a key business executive, preferably the CEO or COO, (2) have clear goals for the outcomes of the ERP, (3) have influence and significant control over the operational leadership of the company, and (4) control of the budget.
• Who are all of the business leaders that currently manage the key processes of the organization? These individuals must become the true owners of the ERP implementation. IT implements and maintains. The business process owners create the value and must own the outcome.
• What are the business reasons for the new/upgraded ERP and when must this value be realized? Facilitating agreement and helping to manage specific expectations between senior executives and the business owners is a key activity in ERP leadership.

With this established, you still have a long way to go to manage the requirements process, evaluate product offerings, make a project plan and budget, and begin the implementation, but this will set the stage for success.