E2: Enhancing program governance in your ERP implementation
Ready for an ERP transformation? Five essentials for successful delivery
Embarking on an Enterprise Resource Planning (ERP) transformation can seem daunting. However, with a clear vision and strong controls, the process can be efficient, productive and even enjoyable. Success hinges on executing your project in a controlled, collaborative and adaptive manner that inspires confidence at every level.
Based on our extensive experience in guiding major ERP transformations, we’ve identified our top five project controls essential for successful delivery:
1. Set up governance for timely decision-making
The best decisions are made quickly and by the right people. Delayed decisions can lead to a lack of clarity and direction, and to an increase in project costs . Establish a culture where decisions are not postponed. Set up governance structures with only essential attendees, ideally around seven people. Implement interim forums for sponsors and business owners to drive decisions between steering committee meetings. Form advisory forums, such as design authorities and business advisory committees, to gather the insights needed for complex decisions.
2. Set the tone to foster transparency and continuous learning
Leaders set the tone for transparency. A lack of openness regarding project status, risks, and issues erodes confidence and creates a culture where challenges are not addressed, potentially jeopardising the project. Request that your sponsors and steering committees actively model curiosity and encourage frank and open discussion on risks, issues and unforeseen challenges. By fostering a culture of transparency, trust and continuous improvement, teams can identify and discuss 'hot spots' early, and all parties can collaborate together to resolve them. Issues will always be encountered on major projects, and in high velocity environments mistakes will be made; your role is not to stop them, but to create the environment that they are raised early and willingly.
3. Establish checkpoints for reflection and course correction
In the rush to execute, it’s vital to pause for reflection. Establishing formal checkpoints provides teams with a ‘pulse check’ on their focus, and enforces sponsors to assess whether the current route remains correct or should be tweaked. Formal sentiment analysis can also help identify potential trouble spots and should be added to checkpoints (PwC Project perspectives). These scheduled pauses can just take a day or two, and can prevent much larger setbacks (often caused by proceeding hard in the wrong direction). Simple planned checkpoints, particularly when assessed against a pre-agreed criteria, enforces a data-based checkpoint on progress and risks, and gives the project space to reflect, and agree on how to proceed.
4. Set up delivery methodology to meet changing needs
A clear ERP vision is vital, as is the ability to adapt. As business needs evolve and delivery issues are encountered, so must your project. Agreed outcomes should serve as the ‘North Star’, but that North Star might need to be tweaked as the business environment changes. In addition, the means to reach that North Star will almost certainly need to change as different opportunities and issues are encountered. Project leaders, sponsors and steering committees need to have a firm eye on the North Star, check it remains current, and guide the project to get there in the most efficient and effective way possible. Agile project delivery methodologies are designed to support this flexible approach, but more traditional approaches can also be agile with the right checkpoints.
5. Establish mechanisms so that the CEO and Board fully understand progress and risk
For major projects and true transformational change, the CEO and the board set the tone for delivery. They are instrumental in setting the risk tolerance, and the ultimate budget envelope to deliver within. It is therefore imperative that projects work with their CEO and board, to fully understand and agree on the risks and how they should best be managed . Projects also need to set up appropriate reporting to their Board on how the project is progressing - in terms of time, budget and risk. This reporting can be hard to get right, and time should be spent working with the Board to fine tune it at the start of the project. Where the level of risk is high and/or the board agenda is otherwise full, we recommend establishing a specialised transformation sub-committee and/or engaging a transformation advisor/partner; such a partner can be a critical interlink between the project, CEO and Board.
Having the CEO and board with you on your journey is of paramount importance, and this can only be achieved by having them with you from the beginning and setting up the structures and processes so they can support you along the long journey.
By integrating these robust program controls, your ERP transformation can evolve from a daunting challenge into a strategic advantage—driving efficiency, innovation, and confidence across your organisation while unlocking opportunities for growth.
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