Everyone knows the terrifying stories of failed ERP implementations. Projects that take forever, go well over budget and/or never deliver the desired results. Project management is largely about expectation management. Consequently, there are many factors that influence the success of an ERP implementation. Not all of these factors are (completely) under your control. But the key to success is to focus on four crucial aspects: Money, Time, Quality and Functionality. In project management, this is also known as the "Devil's Square. If you focus primarily on 1 corner, the other 3 will be strongly influenced by this; they are inextricably linked. Monitor the aspects in the Devil's Square and live up to expectations in your project.
1. Money
An important objective or even requirement is that the ERP project be completed within budget. By drawing up a detailed budget with different phases and milestones, you are able to signal in a timely manner where you expect to deviate and you can respond immediately. This way you avoid unpleasant surprises, such as a project that is not yet halfway through, but is already through budget. Only for extra functionalities and/or changes in the software that actually add value should it be possible to free up extra budget. However, this always affects another aspect of the devil's square, in this case on (lead time).
2. Time
At the start of the ERP implementation, you already agree on when you will go live with the system. As this date approaches, it is very tempting to opt for a few weeks' delay. But only choose this if there is no other option. As with budgeting, control and predictability are key to planning. A comprehensive schedule with insight into the amount of work per person per phase ensures that you can free up the right resources for the project in a timely manner. And that ensures that the go-live date remains realistic and delay is unnecessary or perhaps a very deliberate choice.
3. Quality
That a quality project is important as an end result is beyond question. Among other things, what is delivered must meet the specs, be extensively tested, and amply support the processes. The objective of the ERP implementation is to take a step (or two) forward and support growth of the organization; you want to be ready for the future. Yet due to time constraints or limited budgets, for example, quality is sometimes compromised. That, of course, is not the intention; do it right or don't do it. Going for quality is not the same as going for perfection. What you want is a good, stable basis at the go-live on which follow-up processes can be deployed for optimization. If you choose primarily for quality, the lead time will be longer and/or the required budget will increase.
4. Functionality
The functionalities you want in the new ERP system strongly influence the scope of the project and the future for your organization. Will you stick with the standard or opt for customization and accept the consequences of that choice? What features in the current automation environment (e.g., Interfaces or mobile solutions) should be retained and what will you say goodbye to in the new package? Sometimes because it can be done immediately, sometimes because it enables a huge efficiency boost. Which functionalities do you want to have at your disposal at go-live and which possibilities can be added in an optimization process after going live? Not easy questions, but things you should have thought about in advance, because there is always an influence on the other three aspects.
All aspects from the devil's square are equally important. However, you cannot choose all four. Within any project, 1 is always the most important; the rest will be secondary to it. A decision to make a change in the project should be made relative to the primary choice and the impact on the other aspects. Be aware of the consequences of your choice and whether the decision is justified, that way you can also live up to your own expectations!
Alex Bouwmeester is Project Manager Europe at Dysel and accompanies the customer from start to finish in the implementation.
