CUSTOMatrix™ Insights Newsletter

Missing The Mark    (Part One)

Steve Petersen, Associate, Strategic Services, CUSTOMatrix, Inc.

Most companies invest large sums to acquire and implement ERP solutions. This in itself can be a challenging task and even the slightest lack of skilled project management and/ or focus can result in significant schedule and cost over-runs. Often the solution is to limit the scope of the implementation taking a "hit the high points" approach with the justification of coming back later and filling in all of the gaps. Often though, due to schedule and cost over-runs and required additional commitment of resources and dollars, the budget to come back and finish the project is never approved. The result is too frequently a "successful", functional implementation that fails to deliver the full potential.
 

There are two key factors that must be attended to in order to avoid this situation - the first topic (addressed here) is ensuring at all costs that experienced project management is utilized well before, during, and after the implementation. The second topic (to be addressed in the next newsletter) is to fully understand and focus on how the system will be tailored to drive the business model.

Project Management Selection

Too often when determining the best choice for managing an ERP implementation, the executive sponsors of ERP projects turn to those that intuitively seem to be the correct answer – their internal technical IT staff. Or, equally ineffective, to purely non-technical member of the business team. Here are the key reasons why neither will do:

• The IT staff generally will not have the depth of understanding of the business process or drivers required to truly and effectively integrate the system into the business processes;

• The IT staff’s assessment of success will often be limited to the technical aspects, i.e. does the system “work” – this is very different from does the system deliver the requisite day-to-day functional results;

• The IT staff often works in a cloak of mystery, i.e. in a less than transparent way often causing delays and confusion from a business-person’s standpoint;

• The business staff often will not have the technical wherewithal to understand the system and data architecture constraints well enough to identify and find the shortest and most effective critical path for the project;

• The business staff often will represent “turf invaders” to the IT staff, often resulting in passive resistance from the technical side;

• In either case a great deal of time will be spent translating specialized knowledge to the other side.

You well must be wondering how this dichotomy can be resolved, what is the right mix of skills and experience for the leader of an ERP implementation and where do you find them in one person?

Here is a short-list of the requirements for an effective ERP project implementation manager:

• A minimum of 3 full-scale ERP implementations in multiple industries;

• An equal combination of technical and business skills;

• A full understanding of all business functions and more important, what are the key drivers in each area;

• Experience in an executive capacity;

• Exceptional communication and conflict resolution skills.

In very few cases will you find this person wandering the hallways of your business; More likely they will be in constant demand working with companies to implement highly effective ERP solutions.

CUSTOMatrix™ has a number of such talented individuals available and ready to assist. It is often practical to utilize such expertise on a sliding level of active participation, with heavier involvement on the front-end of the project, preferably beginning in the selection phase, with a gradual reduction in man hours as the project gains momentum.

To be continued…

Should your organization be interested in increasing its revenue or evaluating the effectiveness of it marketing investments CUSTOMatrix Consultants can assist you in assessing your situation and recommending a course of action.

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