Often in the real world, Projects are reported to deliver suboptimal deliverables. Many estimates and studies have placed ERP failure rates to as high as 60%. There are innumerable published articles citing top reasons for ERP failure. No Management Buy-In, Resistance to change, Inadequate Requirement definitions, Unrealistic Expectations etc. are cited here as few of those top reasons for failures.
In course of my professional career, I faced a same situation in two completely distinct organizations in completely different verticals. ERP Implementation was deemed to have failed. All the money invested was almost unrecoverable and no one seemed to be aware of what the ERP was all about. Looking back at the situations, there are a number of parallels. For academic interest, on performing a RCA of both the events and by Pareto Analysis (The 80-20 Rule), it was evident that one of the major reasons for unrealized expectations was a completely inadequate Stakeholder Management Strategy during ERP Project implementation.
All ERP failures truly stem from inadequate Stakeholder engagement programs. Stakeholder Management is one of the fundamental areas of Project Management, and the level of adoption can effectively make or break your Project. The Project Management Institute has taken due cognizance of this and has incorporated ‘Project Stakeholder Management’ as a distinct Knowledge Area in the Vth edition of the PMBOK guide. In the previous edition, Project Stakeholder Management was a part of Project Communications Management.
One of the key processes of ‘Stakeholder Management’ is to define and design an effective Stakeholder Engagement Plan. In the Identify Stakeholder process, the mapping of Stakeholders is done and the Stakeholder Power/Influence/Impact is duly noted and registered. The need to enhance Stakeholder engagement in a bid to deliver successful Projects has been reiterated in different Projects across the globe. In this context it is important to classify the Stakeholder engagement Level. Such engagement Levels are classified as under
Stakeholder Management is all about creating and maintaining relationships among Project Stakeholders with the aim to achieve appropriate Stakeholder Engagement Levels*. As is evident from the above, Communications and collaboration forms the backbone of effective Stakeholder Management Strategy which can potentially result in achieving all desired Project Goals.
Many estimates and studies have placed ERP failure rates to as high as 60%. There are innumerable published articles citing top reasons for ERP failure.
Yogeeta Deshmukh, PMP has over 17 years’ experience in Leading IT Teams across Industry Verticals like Aluminium, Automobile Components and Pharmaceutical. She is currently working as General Manager, IT for Pharmaceutical Manufacturing Organization with a Global Presence.
Disclaimer: "PMI®", "PMBOK®", "PMP®", "PMI-RMP®", "CAPM®" and "PMI-ACP®" are registered marks of the Project Management Institute, Inc.
The Swirl logoTM is a trade mark of AXELOS Limited.
ITIL® is a registered trade mark of AXELOS Limited.
PRINCE2® is a Registered Trade Mark of AXELOS Limited.
MSP® is a Registered Trade Mark of AXELOS Limited
Certified ScrumMaster® (CSM) and Certified Scrum Trainer® (CST) are registered trade marks of SCRUM ALLIANCE®
Professional Scrum Master is a registered trademark of Scrum.org
The APMG-International Finance for Non-Financial Managers and Swirl Device logo is a trade mark of The APM Group Limited.
The Open Group®, TOGAF® are trademarks of The Open Group.
IIBA®, the IIBA® logo, BABOK® and Business Analysis Body of Knowledge® are registered trademarks owned by International Institute of Business Analysis.
CBAP® is a registered certification mark owned by International Institute of Business Analysis. Certified Business Analysis Professional, EEP and the EEP logo are trademarks owned by International Institute of Business Analysis.
COBIT® is a trademark of ISACA® registered in the United States and other countries.
CISA® is a Registered Trade Mark of the Information Systems Audit and Control Association (ISACA) and the IT Governance Institute.
CISSP® is a registered mark of The International Information Systems Security Certification Consortium ((ISC)2).
CISCO®, CCNA®, and CCNP® are trademarks of Cisco and registered trademarks in the United States and certain other countries.