Organisations, both for-profits and not-for-profits, understand the undeniable benefits of a fully functioning enterprise resource planning (ERP) and financial management system (FMS).
They know that ERP systems can provide much-needed structure and organisation-wide clarity for businesses, as well as offer enhanced features and capabilities in terms of operations, approvals, and much more. FMS systems, on the other hand, are integral for automating an organisation’s financial processes and accounting functions, providing real-time visibility into an organisation’s financial health.
With these many benefits, it’s no wonder that implementing an ERP and/or FMS is often high on the agenda for many organisations.
However, these projects can also be some of the most challenging and risky undertakings that an organisation can undertake, with a high potential for delays and cost overruns.
What are the reasons behind this? Here are some of the most common causes of delays in ERP and FMS projects:
1. Staffing shortages
One of the most common reasons for project delays is staffing shortages. Organisations often underestimate the number of resources required to successfully implement an ERP or FMS, leading to a shortfall in staff during the project.
2. Budget overspend
Budget overspends are another common cause of delays in ERP and FMS projects. This is often due to unforeseen costs associated with the project.
This is why it is important to choose an Implementation Partner that is transparent from the outset about its fees and costs. This will help to avoid any nasty surprises down the line!
3. Poorly defined project goals
If project goals are poorly defined, it can lead to confusion and ambiguity amongst the project team, which can in turn lead to delays.
It is therefore crucial that project goals are well-defined from the outset and that all stakeholders are clear on what these goals are.
4. Weak management oversight
It’s crucial that ERP and FMS projects have strong management oversight in order to avoid delays.
This means having a dedicated Project Manager who is responsible for ensuring that the project stays on track and that any issues are quickly resolved.
The Project Manager can feedback to senior management on the project’s progress and highlight any potential risks that could lead to delays.
5. Over-optimistic time estimations for deliverables
Overly optimistic time estimates for project deliverables. This often leads to unrealistic expectations about the project timeline, which can in turn cause delays when those expectations are not met.
It is therefore important to be realistic about the timeframe for each deliverable and to factor in any potential risks that could lead to delays.
6. Unforeseen issues that may arise
As with any project, there is always the potential for unforeseen issues to arise which can lead to delays. This is why it is important to have contingency plans in place to deal with any such potential issue.
7. Changing the scope
Scope creep, which is when the scope of the project changes mid-way through the implementation process, is one major cause of delays in projects.
This is often due to new requirements being added or changes being made to the existing requirements.
For instance, an organisation may decide that they want to add a new module to the ERP system, or they may change their mind about the way in which certain processes should be handled.
Scope creep can be avoided by having a clear and well-defined scope from the outset; such scope must be agreed upon by all stakeholders before work begins
Conclusion
Enterprise Resource Planning (ERP) and Financial Management Systems (FMS) are high-priority projects for many organisations, but they can also be some of the most challenging and risky undertakings.
The most common causes of delays in ERP and FMS projects include staffing shortages, budget overspends, poorly defined project goals, weak management oversight, over-optimistic time estimations, unforeseen issues, and changing the scope.
It is therefore crucial that organisations plan and prepare carefully for their ERP and FMS projects in order to avoid any potential delays.
To avoid delays and other issues, it is advisable to work with an experienced and reputable Implementation Partner who can provide expert guidance and support throughout the project.
Book a free ERP/FMS consultation call
You can also book a free consultation call with one of our expert consultants to discuss your specific requirements and learn more about how we can help you implement your project successfully.
