A recent report on ERP implementations indicated that even the implementations of major erp vendors tend to go over-schedule.
Sixty-one percent of respondents indicated a longer than anticipated implementation duration, but that this has less to do with the software chosen than it does with the other critical success factors of implementation. These are the main ERP implementation factors that respondents indicated as reasons for extended durations and the percentage of respondents who chose that particular factor:
- Initial Project Scope was Expanded 29%
- Organizational Issues 20%
- Data Issues 17%
- Resource Constraints 17%
- Training Issues 15%
- Technical Issues 14%
- Conflicts in Priority of Project 12%
- Unrealistic Timeline 11%
- Vendor Functionality Issues 4%
Vendor functionality issues only account for four-percent of reasons for extended duration. So why the overrun? Well there are practical issues of wishful thinking, often an underestimation of the committment needed to make things happen, the need to deal with othe r non project related day to day queries and administration, plans that are not reviewed and updated because no timeor reosurce is is allowed in the project plan to do this. Real world issues that arise with no contingency:
– a project member leaves,
a process changes,
a business emergency arises,
hey we changed our mind about what we want, and guess what we dont’ all agree
micro planning and coordination is difficult and takes time and there still needs to be some latitude:
– maybe training for some people takes a bit longer,
– maybe the data is not quite as perfect as was thought,
– maybe some code fails QA test and needs rework – isn’t that reason why we have QA?
We adopt a critical chain approach to ensure timelines are realistic. Proper preparation, realistic time allocation and a JDI attitude all help, clear RACI and experienced project members eans proejct meetigns are about how to make things work not how to fidn reasons why nothing is perfect.
There is no doubt that some overruns are due for commercial reasons- small issues are magnifed to delay payments, or by consultancies that lack the depth of resources needed, or try to juggle too many projects with too few experienced staff, or client senior managers sit on the fence and expect juniors to make decision.
The early days of a project are critical in establishing responsibilities , time/resouce commitment, vs scope, teamwork, and how the project will be run. Failing to invest adequate time to the project team building and the project planning and proces,s in a a rush to dive in and get started often leads the team down the wrong road. It is worth taking time to ensure sure that everyone is on the right path and the same team. Its not about being friends nor about holding the other side repsonsible. Its about ensuring everone is on the same team with the same objective and understanding of the route to take and what their commitment is.
However, if someone tells you that they can implement in half the time you expect or that is quoted by other vendors then if it sounds too good to be true then it probably is. Much the same applies to consulting rates There is a reason why some command a higher fee. Taking twice as long even at half the price is false economy especially if it still does not work! Don’t take our word for it ask our many clients who have seen over the last 21 years that it is possible to deliver succesful projects and that rapid go live should not be feared when there is strong local support always at hand.
