ERP Failure: 5 Ways to recover from an ERP Implementation failure
An ERP implementation failure is the worst-case scenario. However, if project leaders follow these measures, the project may still be salvageable. Learn how to recover.
An ERP implementation failure is the worst-case scenario, and an implementation project team aims to avoid it at all costs. However, the implementation team may still be able to save the project, and the project leader should follow specific steps afterward to try to do so.
Among these actions are the creation of a failure recovery plan and the solicitation of executive support. Here are the measures a project leader should take after an ERP implementation failure, along with the reasons why these procedures may be beneficial.
1. Create a plan
Before deciding how to address implementation challenges, the project leader must first create a ERP Implementation checklist or create a plan. Before jumping in, the project leader must comprehend the full nature of the issues causing the failure and then formulate a plan. The leader can then prioritize the areas that require the most attention and develop a plan to address the problems. Creating a plan may alleviate the burden on team members to resolve issues for the employees who have the most complaints about certain concerns.
2. Exceed the budget
Due to the costs of keeping implementation partners and employees who were loaned to the project working longer than anticipated, the project team will need additional funding if the implementation fails. The team may also require additional resources to handle the issues.
The project leader must first examine any remaining budget from the ERP implementation, then create an estimate of the required amount of additional funds required. Due to the urgency of the implementation failure, the leader may not have time to create a detailed budget, so they should have multiple individuals review the numbers. The leader should request confirmation of the additional expenditures, ensure the budget doesn’t include any mistakes and verify that it is as detailed as possible.
The more times the project team must request funding, the worse it appears; thus, the leader must ensure that the budget is right the first time.
3. Categorize the right issues
The project leader should ensure that employees and other users may readily communicate ERP system issues to the implementation team. The leader must next develop a means to save the issues in an application so that the team can review, evaluate, prioritize, the issues, and finally mark them as resolved. If the project team does not begin utilizing an application during implementation, they may have to rely on the IT ticketing system or use a spreadsheet.
The team should next prioritize the most pressing issues after reviewing them. This ensures that the team solves the most significant issues first and not just the ones generate the most complaints. For instance, a project team should likely prioritize security and data integrity concerns over usability issues.
4. Communicate with employees
If employees are facing severe issues, the project team should inform them that they are aware of the issues and are working on a plan to resolve the issues.
As the team builds the recovery plan, the highlights can be shared with employees. The team may also wish to develop a simple dashboard to share with employees, on which team members can list outstanding issues and flag them as resolved. Employees can then see the team’s progression.
However, if creating the dashboard will take more effort away from resolving ERP system issues, the team should avoid this step.
5. Get quick fixes into production
The team should implement a process to regularly incorporate fixes into the production ERP system, as opposed to waiting weeks to address serious issues. Employees will observe the implementation team’s incremental progress and feel reassured that the issues are being addressed.
However, the project leader must ensure that the team is not bypassing necessary steps before pushing updates to production. For instance, a member of the implementation team who is moving changes to the production ERP system may first need to update the documentation and verify that the team has tested the changes.
Ask for executive support
To recover from an ERP failure, requires some level of executive support. At the very least, the executive may serve as the team’s champion during meetings when leaders discuss the ERP project, and the team may seek the executive’s approval of additional funding. In addition, an executive can assist with employee communication by reiterating the organization’s commitment to addressing employees’ ERP system concerns.
The project team should be keep the executive informed of progress. However, the group is not required to share details with the executive unless requested by the executive.
If you need help beginning an ERP implementation, or to see how we can help you turn around a ERP implementation failure, contact us today for a free consultation.
