By: Dr. JT Gorrell
Author of “Leading Microsoft Dynamics
ERP Implementation Projects”
Leadership is critical in a successful ERP implementation, as it enables project managers to guide their team towards achieving project goals and delivering results. With 55% to 75% of projects failing, according to Gartner, and Leadership consistently being in the top 3 reasons for failure, it is imperative to understand what to look for and how to effectively lead your ERP implementation projects.
First, let’s review some of the common issues found during an ERP implementation that can be attributed to leadership:
Lack of Commitment: If leadership, especially top-level executives, is not fully committed to the ERP project, it can lead to a lack of resources, support, and priority. This commitment is essential for overcoming challenges and ensuring the project’s success. Additionally, leadership needs to be actively involved throughout the ERP implementation process. If leaders are not engaged, it can result in poor decision-making, misalignment of goals, and a lack of understanding of the system’s capabilities and benefits.
Unclear Vision and Objectives / Inability to Manage Expectations: Leaders must articulate a clear vision for the ERP project and establish well-defined objectives. Lack of clarity can result in confusion, misalignment of efforts, and an inability to measure progress. Additionally, Unrealistic expectations can set the stage for disappointment and project failure. Leaders need to manage expectations by providing realistic timelines, budgets, and outcomes.
Ineffective Project Governance: Leaders must establish a robust project governance structure to oversee and manage the ERP implementation. Lack of governance can lead to scope creep, budget overruns, and a loss of control over the project. Leaders should proactively identify and address potential risks to prevent issues from escalating. Failure to do so can lead to project delays and increased costs.
With these in mind, an effective leader needs to ensure they include the following in how they lead their ERP implementation project:
Provides a clear vision: A good leader provides a clear direction to their team and communicates the vision for the project. This clarity enables everyone involved to understand their roles and responsibilities. Additionally, managing expectations effectively helps reduce the risk of disappointment, frustration, and miscommunication, which can undermine the success of the project. Effective expectation management involves understanding the project’s stakeholders, setting realistic goals, communicating progress regularly, and managing changes proactively.
Motivates the team: The ability to motivate and inspire team members is crucial in keeping them focused and committed to the project’s success. It is believed that leaders who strongly motivate followers to perform beyond their expectations, increases their followers’ sense of the importance and value of tasks, and stimulates members to look beyond their own interests and direct themselves to the interests of the team, create this commitment and cohesiveness more consistently within their teams. Effective leaders understand how to create a positive work environment and provide support and recognition to their team. ERP implementation success is heavily dependent on the effectiveness of implementation teams in performing interdependent and concurrent tasks and communicating and collaborating both within and between the teams. A highly performing team is composed of capable and dedicated resources, who are knowledgeable and accepting of the implementation scope, goals, and approach. As such, studies have found that behavior is the highest factor affecting overall project success. These behaviors include such things as following the schedule, raising their hand for help and guidance, asking probing questions to understand the right path forward versus the easiest one, delivering quality work products on time, and properly documenting activities, results, and deliverables. In the end, studies found when project resources displayed positive behaviors and boundaries within the project’s execution, the project was 95% more likely to be successful, regardless of the strength and experience of the team, the project plan, or the project implementation methodology.
Manages conflict: Conflicts are inevitable in any project, and it is the project leader’s responsibility to manage them effectively. A good leader understands how to resolve conflicts and create a collaborative and respectful work environment. One of the most important aspects of leadership affecting the outcome of an ERP implementation project is the leader’s leadership style. While there is no one-size-fits-all answer to the question of “what is the best leadership style for ERP implementation projects”, an effective leader assesses a variety of factors, including the project’s size, complexity, team composition, and organizational culture, in order to lead the project team to success. A successful ERP project manager will need to be adaptable, communicative, and willing to learn from both successes and failures
Doesn’t waver on accountability: By setting deadlines for tasks and tracking progress against the schedule, leaders can hold team members accountable for their deliverables. Accountability ensures that individuals and teams take ownership of their responsibilities and deliver the expected outcomes. Accountability promotes project success, clarifies roles and responsibilities, manages risks, ensures quality, supports change management, and enables continuous improvement. When everyone involved in the project is held accountable, it increases the likelihood of successful project completion within the defined timeline and budget.
While there is no silver bullet to ERP Implementation success, paying attention to these things can improve your chances of success on your next project.
For further information, find my book “Leading Microsoft Dynamics ERP Implementation Projects” on Amazon.
About the Author
Dr. Gorrell is a seasoned ERP implementation specialist, with over 25 years leading some of the largest ERP implementations around the world. He shares his deep expertise in ERP implementation leadership in his book entitled Leading Microsoft Dynamics ERP Implementation Projects. He received his Bachelor of Science (Business Management) and MBA from LeTourneau University, and his Doctorate of Business Administration (Project Management) from Liberty University. His doctoral research project was entitled Factors Affecting Microsoft Dynamics ERP Implementation Project Success.
