ERP implementation success depends on the resources available to ensure the project goes off without a hitch. However, it can be impractical to pull people away from their day jobs to devote 20+ hours to ERP efforts. Is it possible for a business to staff its ERP implementation for success without sacrificing normal business operations? And how can they keep resources engaged throughout the entire process? Tune into The ERP Advisor Podcast where Shawn Windle will divulge the secrets to staffing your ERP implementation for success, without compromising business as usual.
How to Staff Your ERP Implementation
ERP implementations are difficult to execute, especially when businesses lack the right resources. In this installment of The ERP Advisor, we dive into the complexities of staffing an ERP implementation and guide business executives down the path of success.
The Main Components of a Successful ERP Implementation
At a high level, a successful ERP implementation is comprised of four major components: the right software, the right implementation partner, the right client-side team, and sheer luck.
The first component is the right software. Businesses should undergo diligent ERP software selection processes to ensure they identify and select the right solution(s) for their business. Some ERP implementations fail because the wrong software is selected.
The second component is the right implementation partner. During the selection process, you will need to evaluate implementation partners as much as you evaluate the solution itself. The best partners have referenceable customers working within your vertical, industry, or even micro-vertical. Additionally, you should select a partner you truly enjoy working with and they must be willing to work with you. If you are unable to effectively work with the partner you select, your project will be doomed to fail. Don’t just meet with the sales team but meet with the actual people who will be working on your implementation, is a key step in choosing the right implementation partner.
Third, you need the right client-side team. This includes you and the other people throughout your organization who will be contributing to the project. From the person cutting the check, all the way down to the people who will actually learn how to use the software. The right internal team can make or break your project.
Finally, you are relying on a little bit of luck. Fortunately, the more prepared you are, the more you don’t need to rely on getting lucky. Need help preparing? Download EAG’s free implementation guide.
Key Parties Involved in an ERP Implementation
The key roles for a successful ERP implementation come from the implementation partner as well as the client’s company.
Implementations partners have clearly defined roles designed to ensure the success of their clients. These include:
- A Project Sponsor: An individual responsible for facilitating and ensuring the success of the project at a high level.
- A Project Manager: Someone who paves the project path and makes sure tasks are completed.
- A Lead Architect: A technical resource who intimately knows the constructs of the software you are implementing and how to design it for your needs.
- A Functional Lead: An individual who is operations-focused and ensures their development team correctly understands your business so the new software can meet your requirements.
Internally, a client must fill seven main roles to ensure ERP implementation success. These include:
- Executive Sponsor: A business executive backing the digital transformation.
- Project Sponsor: The individual spearheading the project and bringing attention to the business’s need for a new software solution.
- Project Manager: An internal guide for the project and completion of tasks.
- Technical Lead: The internal resource charged with tracking and executing the technical aspects of the implementation including data migration and integrations.
- Lead Business Analyst: Someone who understands the business from end-to-end and can provide overarching guidance for the design and configuration.
- Subject Matter Experts: Key individuals across the organization who deeply understand their departmental operations.
- End Users: The rest of the client personnel who will use the software.
Someone has to wear these hats, or major tasks will get overlooked during the ERP implementation. On super tiny projects, it is often a single person who steps up to take on each role. This can be extremely unfortunate for that individual because they run the risk of burnout, so it is best to provide them support in those types of projects.
Your team who fills the client-side roles will work many hours in addition to their day jobs, so consider giving them extra compensation in appreciation for the extra effort. The software salespeople selling you the ERP software are not responsible for organizing your resources for you. Most likely, they will not point out you do not have the enough internal resources. It is YOUR responsibility to ensure your project is properly staffed, but the first step toward success is awareness.
Overcoming Misconceptions About ERP Implementations
There is a number of misconceptions about staffing an ERP implementation.
The first misconception is “The ERP implementation process is going to be easy.” Frankly, it just isn’t. ERP implementation requires significant investment, of both time and money. Many who have never been through an ERP implementation believe the implementation partner or vendor is going to come in, install the software, and that is going to be it. The reality is the client is responsible for much more internal organization and task completion than they realize. Executives need to be aware of implementation complexities, so they do not fall into this common trap. Schedule a free consultation and receive your copy of “Common ERP Implementation Misconceptions.”
Another misconception is that employees will not need to put in additional work to ensure the project is a success. Key employees may add 20+ hours of additional work to their normal day-to-day. You must make these expectations very clear to those working on the project and do everything you can to support your resources over the course of the project. The last thing you want is to set up your committed employees for failure and make them feel they are letting the organization down.
Finally, miscommunication has the power to sink any ERP implementation. Implementation partners will do their best to communicate what is required of the client, but many do not realize they are falling short. This often results in the client being unsure or unaware of their roles within the implementation, ultimately leading to overlooked and incomplete tasks. If you are ever unclear about your responsibilities, be willing to meet with the implementation partner to ask questions and clarify roles. This miscommunication has harm plenty of ERP implementations and is why many turn to client-side implementation consultants for their expertise and guidance.
Steps to Ensure Your Project is Properly Staffed
Unfortunately, there is no magic potion or spell that can immediately and effectively staff your ERP implementation, but businesses have options.
The first option is to backfill key people. When undergoing something as extreme as an ERP implementation, you want your key people free and ready to execute. But who can cover those core positions in the meantime? Backfill! Backfill gives employees, usually those working right below the key individual tackling the ERP project, an opportunity to step up and take on more responsibility. Most of these employees are willing to accept these responsibilities for career growth.
The second solution requires businesses to look externally. Sometimes businesses turn to temps to staff normal business operations while key people focus on the ERP implementation efforts. In these situations, there needs to be a documented process in place for a temp to follow. Uncertainty and ambiguity can spell disaster for temps trying to execute “business as normal.” There are many businesses out there willing to outsource resources, especially within the accounting space, so don’t disregard this as a viable option. Alongside temp agencies, companies may also turn to augmentation service providers. Augmentation service providers deliver more technical capabilities, making them another viable option for complex projects.
Additionally, there are firms like ERP Advisors Group who can step in to shoulder the burdens of running an ERP implementation. Our client-side implementation consultants will ensure the project is properly staffed, organized, and ultimately kept on track.
Regardless of your chosen path, remember to ALWAYS incentivize your people. Every employee has a varying level of commitment, so when you are asking them to commit more time, you have to ensure they will feel appreciated and have a desire to contribute.
What to Do If You Don’t Have the Right Internal Resources
If you are unsure about your capacity to staff an ERP implementation, your path forward will vary. Some companies purchase the software, get the implementation partner in place, and hope like crazy things fall into place, although this is not the recommended course of action. We have seen many projects where good people come out of the woodwork to help contribute to success, but that is too reliant on luck. If aligning factors are making it too difficult to actually achieve ERP implementation success, like upcoming mergers or major changes, we would recommend holding off on the project.
If an ERP software upgrade is absolutely necessary, regardless of resources, you may still need to undergo an ERP implementation. In those situations, we would recommend purchasing less expensive software that will result in a less expensive implementation. Less expensive projects equate to less risk and provide room for employees to become more invested in the project over time.
Course Correction During an ERP Implementation
During an ERP implementation, there are indicators that the right resources may not be in place. Externally, you will see signs from the implementation partner. If people are not making time or other clients are beginning to take priority, it may be a sign that your project has been bumped for one reason or another. You can predict your project has been de-prioritized by your partner if you are well under budget. Once again, this is a sign that priorities have shifted elsewhere. To combat this problem, our experts will ask for weekly reports detailing the time their people are actually putting into the project, even if it is a fixed fee. This holds the team accountable and helps keep the project on track. Additionally, we recommend that you always push to keep the project moving. Stalled projects can deter investment from implementation partners who are assisting other clients.
Internally, you will need to monitor your project team and how much time is actually going into the implementation. This can be a bit tricky because you are working with your team every day. You should be worried about the state of your project internally if the executive sponsor and SMEs begin brushing things off. If no one is working to complete the project, then it is destined for failure. Alternatively, if key employees are too invested in their days jobs and have no idea what is going on with the ERP implementation, or they don’t know what is really going on with the business, it is a very bad sign.
If these indicators are appearing, it may be time to evaluate the state of your project to determine if moving forward is your best course of action. That may mean pausing the project until the right resources are in place, rallying the troops to get things done, or abandoning the project all together.
Conclusion
Staffing an ERP project can be one of the most difficult things to get right, which is why so many businesses turn to industry experts. No matter the obstacles your ERP implementation is facing, ERP Advisors Group is here to help. Get the guidance you need by scheduling a free consultation, today!
