At a glance
The management must set the strategic direction for the ERP implementation right from the start, give the project management backing and delegate authority. At the same time, it must not get involved in operational project management, otherwise there is a risk of delays and budget overruns.
The management should be involved in a major project such as the introduction of ERP – this is undisputed. After all, it involves large investments and strategic decisions with long-term effects.
But would you have thought that the management level can also cause damage during an ERP project? The reason for this is often an incorrect allocation of tasks and roles, which leads to delays and budget overruns.
So the question arises: what tasks should the management take on during the ERP implementation – and what pitfalls should they avoid? You can find detailed answers to the dos and don’ts during the ERP project in this article.
Dos: The management should take on these tasks
1. answer strategic questions
Right at the beginning of the project, the management has an important task: it determines the strategic direction of the ERP project and defines the overall objective. This is so important because the introduction of an ERP system always has a long-term impact on all departments. If the functionality of the solution does not match the overarching vision of the company, expensive subsequent adjustments are unavoidable.
This strategic focus means that management is more involved at the start of the ERP project than in later phases. At this stage, the top-level perspective is more relevant, as fundamental questions need to be clarified. These include
- What goals does the company want to achieve with the ERP implementation?
- Which KPIs are used to measure success?
- Which departments should be connected to the ERP system?
Let’s say your company is growing strongly and wants to double its global market share in the next five years. Without defining strategic goals, the project team would probably focus on optimizing stock levels – and not on internationalization. Features that are essential for expansion plans, such as multilingualism or a cross-border finance module , might then be missing. By contrast, communicate clear priorities and steer the project in the right direction right from the start.
Later on, the tasks of the management shift more towards the area of monitoring. As a rule, senior management maintains close contact with project management and regularly discusses progress with the project team. It speaks up if detailed decisions concern strategic framework conditions.
A lack of support from management is a common reason for the failure of an ERP project.
2. support the project management
Another important task of the management is to stand united behind the project management and offer support if required. After all, a lack of support from the management is a common reason for the failure of an ERP project. There are two main reasons for this:
- Employees do not give enough weight to the ERP project
Very few companies can afford to release the project team completely for the duration of the ERP implementation. As a result, team members usually have to manage the project alongside their core tasks. If the manager were not authorized to demand performance directly in this case, the colleagues would probably give priority to day-to-day business. This would jeopardize the project schedule.
- Employees bypass the project managers
Some employees tend to ignore weak project managers. They question decisions and turn directly to management with queries. However, management often has neither the time nor the necessary expertise to answer detailed questions. This means that misunderstandings, conflicts and further delays are inevitable.
It is therefore best to ensure that the project manager speaks to their team with the voice of the management – at least when it comes to ERP issues. As soon as conflicts or resistance arise, the company management should be prepared to actively intervene. This strengthens the authority of those responsible and ensures that the project is not in danger of failing due to internal disputes.
3. grant sufficient powers
In addition to sufficient backing and support from senior management, project managers also need the necessary rights and freedom to be able to manage the project successfully. Therefore, make sure that they can act without constant consultation and have sufficient resources and authority. This includes, for example
- An appropriate budget that the manager can freely dispose of
- Sufficient staff who can concentrate on the ERP project at least part of the time
- Freedom of choice in the selection of suitable key users
- The authority to adapt internal processes so that they promote the progress of the project
All these resources and powers are essential for the smooth process of an ERP implementation indispensable. Remember: If the project management is not allowed to decide for itself, the employees will ask the management for advice on minor matters and demand a decision. For example, they will bother the management level with the exact design of the search function or deal with questions about the navigation menu.
This not only means an additional workload and more stress for the management. It also repeatedly leads to delays if the boss is not available. A largely autonomous project team can save you this trouble.
Don’ts: Management should avoid these mistakes
1. take over the ERP project management
Some companies make ERP implementation a top priority and appoint a member of management to head the project team. They expect this to result in a strategic focus and fewer conflicts between management and project staff. A mistake: in reality, this occupation has exactly the opposite effect. There are two main reasons for this:
- As the management already has many other responsibilities, it usually lacks the necessary time for labor-intensive project coordination. If day-to-day business gets in the way, the ERP project loses out. This results in undesirable project delays.
- As a rule, management is not sufficiently familiar with the workflows in day-to-day operations and does not have sufficient specialist knowledge. It is therefore difficult for them to assess the actual benefits of an ERP function.
The management should therefore not lead the ERP project team. It is more effective if you look for a person who can dedicate themselves fully to the ERP project. It is best to choose an assertive yet empathetic personality for the position who also has specialist expertise. Comprehensive expertise in dealing with ERP systems will enable them to better anticipate risks, develop appropriate solutions and react appropriately to unforeseen problems.
2. have no confidence
Another no-go is a lack of trust in the competence of the project managers. Some managing directors show little confidence that the manager can lead the project to success on their own responsibility. They tend to exert excessive control and question decisions.
Such a lack of trust weakens the authority of the project management and robs it of the ability to coordinate the ERP project independently. Sooner or later, this reduces motivation. In the worst case, they will no longer identify with the project. Then it is only a matter of time before commitment wanes and the project suffers as a result.
3. operate micro-management
A lack of trust often leads to another type of behavior that management should avoid as far as possible: unnecessary micro-management. With this management style, the focus is not on overarching strategic goals, but on operational details. Management constantly interferes in detailed decisions and demands that even the smallest work steps are approved.
Such mismanagement not only disrupts work processes, it also complicates the entire project organization and reduces productivity. The result: uncertainty and frustration spread throughout the project team, inhibiting any creativity, initiative and innovative spirit. Instead, the team is preoccupied with grueling consultations that lead to frictional losses and delays.
It is therefore much more effective if the management strengthens the autonomy of the project team. This has the following advantages:
- Decisions can be made without lengthy coordination processes, which leads to faster workflows and accelerated project progress.
- Independent action promotes a positive working atmosphere and a harmonious working environment in which employees feel valued and respected.
- The team feels encouraged to think outside the box and find innovative solutions.
- There is open and transparent communication between the project and management teams, which means that potential risks come to light earlier.
Conclusion: It all depends on the right distribution of roles
A successful ERP project requires an unambiguous allocation of roles. Although management and project managers pull together, their tasks are clearly different. While the management level should focus on the strategic direction, responsibility for the project itself must lie with the project manager. This is the only way to make quick decisions and keep to the schedule.
Doubts about the manager’s abilities are just as out of place during the ERP implementation as excessive control. What is needed instead is strong support and sufficient powers to give the project managers the necessary authority. If you can master this balancing act between restraint and active support , nothing will stand in the way of smooth collaboration.
