ERP implementation project, these are words that have already made many people shudder. The launch of such projects is rare and very strategic for a company. The acquisition of such a tool and its implementation generally require the support of professionals in order to define the needs, define the expectations and select the right provider.
Once this first phase is finalized, project management support is more than recommended. The difficulty of successfully completing an ERP implementation project lies in respecting the schedule, the scope and the budget.
Why opt for project or program management coaching?
Here are 5 key points that will help you ensure the success of such a project:
1. Budgetary management
Before starting a project, the realization of a business case is essential. The company’s managers will want to know not only what to spend, but also what return on investment they should expect. This business case must be monitored throughout the project in order to understand when the return on investment will be achieved. This analysis will allow budgetary decisions to be made if necessary.
Whether the project is on a contract or fixed-price basis, it is important to monitor the consumption of resources on a monthly basis in order to obtain a projection of the remaining work and the remaining budget.
2. Establishment of a project governance
The establishment of a governance body aims to structure the project and facilitate the transmission of information between stakeholders. The objective is to gain efficiency by ensuring better coordination of human and financial resources in order to achieve success in terms of time and budget.
This involves the setting up of several types of meetings as well as decision-making assemblies such as project committees and steering committees. A description of the participants, objectives, level of authority, timing and deliverables should be defined for each meeting.
3. Follow-up of deliverables
An ERP system is the nerve center of a company like the nervous system is for the human body. It allows the management of all processes and an instantaneous transfer of information between the different departments.
In order to successfully implement an ERP, there are two types of deliverables to follow:
- Functional deliverables: in other words, the application and technical scope. Any change will need to be carefully analyzed to understand the impact on the scope, schedule and budget.
- Governance deliverables: in other words, project documentation (DIRAC, meeting minutes…), training materials, technical documentation…
Each phase of an implementation project has deliverables. These must be defined before the start of a project so that each stakeholder is aware of their roles and responsibilities in the delivery or validation of the project. A follow-up of the deliverables allows to ensure the quality and the respect of the project perimeter.
4. Risk management
Every project has risks of varying magnitude, and active risk monitoring will help minimize problems that could impact the project’s scope, schedule and/or budget. Risks must be listed, categorized and monitored throughout the project. The objective is to identify mitigating actions that will anticipate unwanted side effects and reduce uncertainty.
5. Performance KPIs
Last but not least, the definition and continuous evaluation of key performance indicators (KPIs) on the project’s key processes will have a great added value for management decision-making. Over the life of a project, there is a critical path, the KPIs will help to accept or not the passage to the next step and to take the necessary actions to secure this passage.
You will have understood, through these few lines, an ERP implementation project is a rich and strategic project for companies. The change this represents for the organization should not be underestimated. Theaccompaniment in the management of the project or program by professionals with a great experience in the field will help you to make this type of project a success.
Do not hesitate to contact us to discuss your goals and projects.
Find our case studies here
GCP Consulting is a consulting firm specializing in operational excellence and change management.