How do you recognize the failure of an ERP project early on?
In most cases, management contacts those involved in the project because it has been recognized that the previously defined and agreed budgets have exceeded the agreed framework and that the project is now in danger of getting out of hand financially. This is a very important and unfortunately incorruptible warning sign. Another critical point is the departure from the project and time schedule set at the beginning of the project. The reasons for this are usually complex and, above all, numerous. It is not uncommon for too much focus to be placed on small details that were possible with the old system during a project and for the overall concept to be called into question again. This process is tolerable and also fine to a certain extent. However, it is not uncommon for one large or many smaller problems to arise that put a great strain on the time schedule and budget. Ultimately, however, it is also possible to quickly determine whether an ERP project is “healthy” by looking at your own employees. Demotivated, annoyed employees who work against the project are a sure indicator that massive mistakes were made during the implementation, which need to be ironed out quickly in order to save the project that has gotten into trouble.
Main reasons for ERP project failure
- Poor requirements specification and specifications
- Weak project management (methodological and/or human)
- Employees were not taken seriously and included
- Insufficient change management (organizational, cultural)
- Lack of commitment from management
ERP project rescue procedure: what to do next?
The first decision that needs to be made is whether the project should be stopped or continued. Basically, if the problem for the imbalance is not the wrong choice of ERP system, then stopping should be avoided. Otherwise, the probability that the prevailing basic attitude will dominate the next project is very high. The following points need to be clarified for the next steps:
- What costs are incurred when continuing or withdrawing?
- How high is the level of acceptance and how can this be increased again?
- Can the project be saved completely or only in part?
- Are there any necessary measures to continue the project and achieve the goals defined at the beginning?
- How does the project planning need to be adjusted and what does the actual schedule look like now?
The situation is different if it is discovered during the introduction phase that a large proportion of the company processes cannot be represented using the software and it is not economical to adapt the company’s own processes to the ERP software. Since individual programming in such a context is generally not advisable, the only option at this point is often to reverse the process and cancel the ERP implementation. However, the “ERP” project does not stop there. In the end, it goes back to the beginning of the project and thus the selection process. The knowledge gained should of course be taken into account when selecting the next ERP system. To avoid you getting into such a situation in the first place, we offer you our support right from the start of your ERP selection!
Successful ERP project rescue: What do we do for you?
It’s very simple: we first discuss the reasons why the project is going wrong and explain the mistakes that were made and the current situation. Next, we answer the questions listed above with you, explain the risks, consequences and opportunities of the next steps and quickly work out a solution to get your ERP project back on track.
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