10 warning signs you have selected the wrong ERP Implementation Partner
When working with an ERP implementation partner, there may be certain red flags. Discover the 10 warning signs that your project team is collaborating with the wrong ERP implementation partner.
An implementation partner can offer a number of advantages to an ERP implementation project, such as access to vendor contacts, knowledge of the problems and limitations of the ERP system, and expertise in maintaining the project’s budget and schedule. However, a project team should be aware of specific warning signs that point to an unsuitable implementation partner.
Warning indicators that an ERP project team should heed include an implementation partner missing deadlines, failing to give training, and disregarding a company’s particular business demands.
Here are 10 warning signs of choosing the wrong ERP implementation partner
1. Implementation partner misses deadlines
Everyone working on the project needs to figure out what went wrong and how to fix it if an implementation partner misses important dates, especially early in the project. There are several reasons why a partner could miss a deadline, and the implementation partner might not be solely to blame. The partner should offer the project team a thorough explanation of what went wrong and explain how they intend to get back on schedule. Their strategy can entail bringing in more personnel or negotiating with the project team to push out less crucial aspects.
The project team should be cautious, though, if the partner advises just making the implementation consultants put in more time. Longer hours might be beneficial in the near run, but the consultants might need to put in those more hours to reach the next milestone.
2. Implementation partner experiences a high employee churn rate
The project team should pay attention if several important personnel leave the partner’s organization. Losing one employee is reasonable, but the project team should be worried if corporate exits start to become commonplace. Project risk is increased by employee departures, and this pattern may result in longer-term problems with subsequent project stages or software support post going-live.
Additionally, a high rate of employee turnover at the business of the ERP implementation partner may necessitate a larger resource contribution from the project team. With new ERP consultants, the team could need to hold additional knowledge transfer sessions, or the implementation partner might find it challenging to bring on board a new project consultant.
3. Implementation partner offers very little to no training
If their implementation partner doesn’t provide the appropriate training, the project team should exercise caution. The implementation partner should enhance the vendor’s training in crucial areas and assist the project team in understanding the types of vendor training that are available and which are required. The implementation partner should also provide documentation and instructions for important elements, explain the configuration of the ERP system to the project team so they can support it after they go-live without their assistance.
4. Implementation partner fosters an environment of dependence on them
When an implementation partner offers to take on extra work as part of the project, the project team should be on the lookout for this. It may cause issues for a variety of reasons. Due to the additional work, the partner may charge more for the implementation. If the implementation partner doesn’t have many other clients, the partner may leverage the implementation to keep their consultants billable. The project team may not adequately understand the ERP system and struggle to manage it on their own after they go-live as a result of the implementation partner taking on additional work, which could result in dependency on the implementation partner.
5. Implementation partner doesn’t understand business needs
The project team should be concerned if the implementation partner isn’t listening to suggestions and isn’t making an effort to grasp company needs since the company is implementing an ERP to solve the organization’s specific business needs. Downplaying the organization’s needs is another bad sign. Since they lack experience in general or in a particular business field and are attempting to avoid responsibility, the implementation partner may disregard a company’s business needs. When estimating the ERP Implementation cost, they might potentially have overlooked the business necessity.
Whatever the cause, if the implementation partner isn’t giving the organization’s business needs enough attention, the project team should be concerned.
6. Implementation partner assigns too many junior-level employees
A typical implementation partner assigns people with different experiences to a project team. The project team should, however, validate that the implementation partner has allocated an adequate number of intermediate and senior consultants.
If there are too many junior personnel working on the project, senior consultants may not have enough time to do their own jobs since they are assisting less experienced colleagues. Senior consultants can mentor those with less expertise. Junior staff members may also make mistakes because they lack a thorough understanding of the ERP system.
7. Implementation consultants are overworked
After-hours and weekend emails from the implementation consultants should raise red flags for the project team. Because the implementation partner didn’t assign enough or the proper staff to the project, the consultants may be overworked. Additionally, the consultants might leave the project team before it is finished due to burnout.
8. The workload of implementation consultants is unevenly distributed
Although the project may receive several implementation consultants from the implementation partner, the project is typically managed by a small number of core consultants. Early on in the project, the project team should keep an eye on how much other consultants rely on these crucial team members. A bottleneck could also develop if everything must go via the main consultants.
9. Implementation partner submits costly change requests
Change requests need to be closely monitored by the project team. When the team discovers a requirement is very different from what the implementation partner anticipated, a change request is made, potentially changing in cost. Large implementations often include many change requests, but the project team should track them track them closely and validate the reason for the change request.
In other circumstances, the request might not entail an additional expense; instead, the implementation partner might only need to document a decision made during the implementation. However, many change requests result in new work, which increases a company’s expenses. Project delays can also result from change requests because the team now has to accommodate the new demand into the project schedule.
Members of the project team should confirm that the requirement is new and not simply something that the implementation partner overlooked earlier in the project.
10. Implementation partner’s documentation is Inadequate
The ERP system configuration documentation is often the responsibility of the implementation partner. When changes are required after going-live, the documentation serves as a valuable resource and helps ensure that the project team and implementation partner are both on board with the project direction.
If an implementation partner isn’t documenting the ERP system configuration, they may be inexperienced or the implementation consultants are cutting corners. Lack of documentation may also be another sign that the implementation partner is attempting to make the company depend on them after go-live. All are red flags.
The project manager should think about having an upfront conversation with the vendor as soon as one or more of these red flags appear. Prior to the meeting, the leader should choose specific instances of the problems and possibly share a couple of them with the vendor so they can get ready as well.
After a discussion with the vendor, if the problems still exist, the project manager should think about taking the matter further both inside their own organization and with the vendor. They should also avoid signing any new contracts with the vendor. Before the organization contracts with the vendor for more work, all issues should be resolved.
If the issues persist after a vendor meeting, the project leader should consider escalating the issue within their own company and the vendor’s and avoid signing any additional contracts with the vendor. Before the vendor signs on for additional work, they should address all issues.
After you review, if you have any questions, our team of ERP experts are ready to help. Contact us for a free ERP planning guidance and personalized advice through a free consultation.
