We wrote an article back in 2013 called “Boiling the Frog: How ERP Implementations Go Wrong.” While 2013 doesn’t really seem all that long ago, the article largely still holds up over a decade later. We thought it was time to talk about “re-boiling the frog"—in other words, provide a few updates on how ERP implementations can go wrong.
A frog placed directly into boiling water will jump out. But if the frog is placed in cold water that’s gradually heated, it will not understand the danger and eventually cook to death. The metaphor is an example of how bending to small changes over time without understanding the big picture can have significant consequences over time.
It's common for ERP implementation teams to suffer the same fate as the frog. People adapt to small changes, become complacent, and before they know it, they’re in boiling water.
They may feel confident throughout a project because of a focus on managing big items (enhancements, specialized configurations, and bolt-on applications). Meanwhile, little things fall through the cracks.
The water starts to boil as go-live approaches. The system isn’t completely configured, reports aren't written, interfaces have errors, technology environments aren’t stable, critical data isn’t loaded, and end users aren't prepared.
How can the ERP project team avoid being boiled? It's all about managing the little things throughout the implementation to prevent a disastrous go-live. The most successful ERP teams do (or don’t do) the following during implementation:
Develop a reporting strategy with a supporting data model before ERP implementation. The reporting strategy not only defines the information and reports required to run the business but determines critical configuration needs. Key attributes such as the chart of accounts structure, item categories, and customer attributes are also determined. The reporting strategy can help develop reports earlier in the project to be tested along with the configuration.
It's difficult to impossible to convert detailed transaction data into a new ERP. Data quality is typically bad in the old system and the chart of accounts will be redesigned. Cleaning data is a full-time job for multiple people, and it’s never really complete. Plus, developing a crosswalk translator from the old system’s master data to the new will rarely map correctly. Converting the history will cause the team to focus more on reconciliation and less on testing the new system’s ability to support new and more efficient processes. It's best to convert and rationalize master data and keep the old system running to research history.
Software vendors will say their solutions seamlessly integrate with payroll services, major banks, and benefit providers. This simply is not the case. These interfaces should be treated no differently than an interface to a non-standard system. Pushing off developing and testing these interfaces will invariably lead to project delays.
It's surprisingly easy to allow critical milestones to slip. Planned configurations, interfaces, enhancements, and reports are not ready for testing, but the team is pressured to meet the milestone, so testing is started with the justification and assurances that the unfinished objects will be included in the next round.
This slippery slope can create significant issues later in the project. Key components from one milestone get pushed to the next milestone, which eventually affects every milestone. Good project managers create pre-milestone checkpoints to ensure project tasks will be completed before a key milestone is achieved. There are fewer surprises since adjustments are made earlier.
System integrators are human. They enjoy their fair share of staffing issues. Staff can get sick, quit, or become otherwise unavailable to the project during critical times. Make sure the system integrator addresses these situations immediately as they arise. Don't wait beyond a short, set time to determine whether the individual needs to be replaced. A two or three-week delay early in the project has significant ripple effects that delay the project.
Used wisely, AI can help with some of the little things that often slip through the cracks. Data management, tracking milestones, and documentation efforts can become simpler or less time consuming with the right, secure AI tools. Just remember to give people the training and tools to use AI with a healthy combination of caution and confidence. It can provide significant benefits and efficiencies, but make sure it’s not the sole source of truth.
At Trenegy, we are our clients’ advocates, advising on ERP strategy and implementing ERP solutions on time and within budget. To talk with our team, email info@trenegy.com.
Trenegy is a non-traditional consulting firm based in Houston, Texas.