Management of the ERP Project systematically, by the Steering Committee is most important.
So, it can be said that , A Strong STEERING COMMITTEE is Important for ERP Project Success.
Finsys Experience tells that ERP Project implementation gets better and better, if you constitute a very strong and powerful Steering Committee. Some companies take this lightly and later, lose out for ignoring this key parameter of success.
Who should be in the Steering Committee?
Constitution of the right steering committee is half the battle won. The Steering Committee should constitute of at least the following personnel:
- CEO – To show the commitment towards the ERP Project
- CFO – For Continuous financial decisions which are part of any ERP Project
- CIO – Key person to manage partner relationships
- Few more ‘C’ level leadership, could be Group Materials Head, Group Production Head / Product Head
- ERP Software company – One Director / Principal level : To ensure product support is available all the time
- ERP Implementation Wing : Leader level – To ensure implementation commitments are secured
- Director / Owner Representative from the customer side
Regularity of Steering Committee Meetings
The initial meetings do happen with energy. However after some weeks, they fade away. All have own duties, and tasks. This needs to absence, low priority and leading to blind approach towards the ERP implementation.
Ignoring the project now, and blaming the functionaries later, is a sad mistake many corporates do.
Absolute abdication is neither recommended nor tolerable in this ERP implementation management
Such decaying interest on the steering committee meetings is a guaranteed way towards failure of the ERP implementation project.
To ensure success of the project, periodicity, consistency and attendance of all stake holders is a must. The only way to ensure the attendance of all stake holders is by the CEO’s presence and commitment in the steering committee.
Acting as a True Decision making Body
Constitution and attendance alone will not guarantee the steering committee’s contribution to the project. It is essential to follow up with these actions:
- Encourage project teams to openly discuss on hurdles
- Make bold decisions to salvage the project without procrastination
- Take financial calls where relevant to ensure the success
- Track milestones meticulously and keep the pressure on the system
- Express commitment towards Go-Live dates
- Constant communication with the organization on the importance of the project
Conflict Resolution by Success Attitude:
It is typical of ERP Project implementations to see the involved parties in loggerheads all the time owing to conflicting interests. To cite a few:
- ERP Product vendor would be subjected to unreasonable expectations on what the product can fulfil.
- Scope interpretation disputes of the implementation partner
- Delays caused by the implementing organization
- Unreasonable automation expectations
- Data issues
In all such instances, it is important for the Steering Committee to take a “Win-Win” approach and be objective towards the ERP implementation project success.
Throwing the weight behind ERP:
It is very typical of an organization to blame things going wrong on ERP. While this might be true on some cases, many times it is a disguise of a deeper problem. For example:
- Integrity of MIS from ERP would be disputed in comparison to Excel.
- Inventory deviations would be attributed to ERP
In all such cases it is usually easy for the Steering committee to trust their internal team and place the blame on the ERP Product / Partner. Usually upon deeper investigation it gets clear that Excel corrections and wrong practices are often the reasons for such situations rather than the ERP Product or Partner. Hence it is important that the steering committee throws its entire weight and unequivocal support behind the ERP product. This will send a clear message to the organization on making it work!
To discuss more about ERP implementations and steering committees, reach out to us at corporate@finsys.in