Having a dedicated Project Manager is the key to any successful ERP implementation. This person is the direct liaison between the client and the consulting firm, someone that has the backing of management and whose time and leadership is 100% dedicated to the success of the project. Even though the lack of project management is the largest contributing factor to many failed implementations; this is the first area where clients try to cut costs. Selecting a competent, focused, experienced and dedicated Project Manager is the very first step in every successful ERP implementation.
At ABIS, we always say “you must have the right people on the bus”. Nothing could be truer than during the implementation of a new technology. As with any project, the success begins and ends with leadership! When bringing in a new ERP software, it is almost guaranteed that there will be major issues during the implementation, and if you have the right project manager (focused on the implementation team, focused on change management, leading the organization, etc.), he/she will turn these major issues into minor bumps in the road.
Read Also: What is an ERP Software?
Top 5 Reasons to Invest in Project Management
- Gain total visibility into cost, schedule, and forecasts
- Shorten project delivery cycles and reduce costs
- Achieve the best utilization of your resources and maximize your team’s productivity
- Centralized resource for information, updates, and direction
- Delivers best practices to the scope of the project and facilitates change
The answer is simple – a dedicated project manager will improve the outcome of your project. The State of the PMO 2014 reported that PMOs:
- Decreased failed projects by 27 percent
- Delivered 30 percent of projects under budget
- Demonstrated a 21 percent improvement in productivity
- Delivered 19 percent of projects ahead of schedule
- Value Delivered - $101K of cost savings per project
Unlike your own internal personnel, a qualified project manager can ensure that your processes are followed consistently, uniform data is collected, and status updates are completed in a timely manner. You will need these services to better utilize your key resources (people, equipment or capital) while improving the quality of your decisions to help ensure you get the most out of your new ERP System.
A large contributing factor to ERP projects failing is not having an assigned PM ensuring transparency of the project through your organization and monitoring the scope of the project. There will be a lot of cultural change happening within your organization and every project needs a PM directing the success of the project along the way.
Our clients tell us, it’s not the big decisions they struggle with during implementation (most organizations do a good job when it comes to big decisions), but it’s the little decisions – the ones that come up often and need an answer quickly – the ones that require someone with experience from dealing with this type of project – these are the decisions they struggle with. As it turns out, these little decisions have the largest impact on the success of a new project; they have the biggest positive effect on your company and its future.
Reducing Capital Project Costs and Shortening Schedules
Our project managers can improve capital project execution resulting in increased productivity, quality, reduced cost, and faster project delivery by:
- Providing accurate and real-time cost and schedule status across your entire program
- Tightly manage and control contingency
- Reduce change orders as a percent of total project costs across your program
- Quickly forecast the cost to complete your projects and spot potential budget issues
- Standardize your project management practices and enforce your policies