🧮ERP: Implementations (Part XIII: On Project Management)

ERP Implementations Series

Given its intrinsic complexity and extended implications, an ERP implementation can be considered as the real test of endurance for a Project Manager, respectively the team managed. Such projects typically deal with multiple internal and external parties with various interests in the outcomes of the project. Moreover, such projects involve multiple technologies, systems, and even methodologies. But, more importantly, such projects tend to have specific characteristics associated with their mass, being challenging to manage within the predefined constraints: time, scope, costs and quality.

From a Project Manager’s perspective what counts is only the current project. From a PMO perspective, one project, independent of its type, must be put within the broader perspective, while looking at the synergies and other important aspects that can help the organization. Unfortunately, for many organizations all begins and ends with the implementation, and this independently of the outcomes of the project. Often failure lurks in the background and usually there can be small differences that in the long term have a considerable impact. ERP implementations are more than other projects sensitive on the initial conditions – the premises under which the project starts and progresses. 

One way of coping with this inherent complexity is to split projects into several phases considered as projects or subprojects in their own boundaries. This allows organizations to narrow the focus and split the overall work into more manageable pieces, reducing to some degree the risks while learning in the process about organization’s capabilities in addressing the various aspects. Conversely, the phases are not necessarily sequential but often must overlap to better manage the resources and minimize waste. 

Given that an implementation project can take years, it’s normal for people to come and go, some taking over work from colleagues, with or without knowledge transfer. The knowledge is available further on, as long as the resources don’t leave the organization, though knowledge transfer can’t be taken for granted. It’s also normal for resources to suddenly not be available or disappear, increasing the burden that needs to be shifted on others’ shoulders. There’s seldom a project without such events and one needs to make the best of each situation, even if several tries and iterations are needed in the process.

Somebody needs to manage all this, and the weight of the whole project falls on a PM’s shoulders. Managing by exception and other management principles break under the weight of implementation projects and often it’s challenging to make progress without addressing this. Fortunately, PMs can shift the burden on Key Users and other parties involved in the project. Splitting a project in subprojects can help set boundaries even if more management could occasionally be involved. Also having clear responsibilities and resources who can take over the burdens when needed can be a sign of maturity of the teams, respectively the organization. 

Teams in Project Management are often compared with teams in sports, though the metaphor is partially right when each party has a ball to play with, while some of the players or even teams prefer to play alone at their own pace. It takes time to build effective teams that play well together, and the team spirit or other similar concepts can't fill all the gaps existing in organizations! Training in team sports has certain characteristics that must be mirrored in organizations to allow for teams to improve. Various parties expect from the PM to be the binder and troubleshooter of something that should have been part of an organization’s DNA! Bringing external players to do the heavy lifting may sometimes work, though who’ll do the lifting after the respective resources are gone? 

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💼Project Management: Project Execution (Part I: Redefining Projects' Success I)

A project is typically considered as successful if has met the beforehand defined objectives within the allocated budget, timeframe and expected quality levels. Any negative deviation from any of these equates with a project failure. In other words, the success or failure of a project is judged as black or white with no grays in between, which is utopic, especially for mid to big software projects, typically associated with lot of uncertainty. According to this definition a project which had a delay of a few months, or the budget was overrun by 10%, or the users got only 90% from the planned functionality, or any combination of these negative deviations, can be considered as failed.

If a small project needed 6 instead of 3 months to complete, which is normal for projects with reduced priority, as long the project costs haven’t changed, then the increase in duration can be ignored. In exchange, 3 months of a delay for a 2 years project is normal, especially when the project is complex. Even if additional costs incurred within this timeframe, as long they are a small percentage in comparison with the overall project costs, then the impact can be acceptable for the business. On the other side, when the delays have an exponential growth with further implications, then the problem changes dramatically.

Big projects have typically a strategic importance. It’s the case of ERP implementations, which besides the technology changes have in theory have the potential to transform an organization pushing it to reach further performance levels. Such projects are estimated to take on average one to two years for a medium organization, however the delays can easily reach 50% to 100% from the initial estimation. Independently of what caused the delay, as long the organization achieved the intended goals and can cover project’s costs, one can say that the project made a (positive) difference.

Independently of project’s size, if 90% of the important functionality is available, then more likely the 10% can be covered in a first step with manual work, following in time to further invest into the system as part of a continuous improvement process. It’s maybe not ideal for the users, however the approach incorporates also the learning curve of working with the system and understanding ist possibilities and limitations. Of course, when the percentage of the available functionality decreases below a given limit, system’s acceptance is endangered, which users eventually start looking for alternatives.

There are also projects which opened the door to new possibilities and which require more investments to leverage the full capabilities. Some ERP implementations have this potential, despite overruns. Some of such investments are entitled while others are not. Related to this last category, there are projects which are on time, on budget, and the deliverables satisfy the quality criteria and objectives, however they make no difference for the organization despite the important investments made. Sure, some of the projects from this category are a must (e.g. updates, upgrade, technology changes), however there are also projects which can be considered as self-occupational hazard. In extremis such projects run in the background and cost organizations lot of energy and resources, while their effects are questionable.

At least from these examples the definition of a project's success needs to be changed or maybe standardized to consider not only intrinsic but also extrinsic aspects. In theory, that is the role of a Project Management Office (PMO), however it’s challenging to find an evaluation methodology that fits all needs. Further on, from same considerations, benchmarking projects across organizations and industries can prove to be a foolhardy attempt.

🚧Project Management: Project Management (Just the Quotes)

"Amid a wash of paper, a small number of documents become the critical pivots around which every project's management revolves. These are the manager's chief personal tools." (William Bengough, "Scene in the old Congressional Library", 1897) 

"Project management is becoming more important as equipment, systems, and projects become more complex." (Bud Porter-Roth, "Proposal Development", 1955)

"The classical vertical arrangement for project management is characterized by an inherent self-sufficiency of operation. It has within its structure all the necessary specialized skills to provide complete engineering capabilities and it also has the ability to carry on its own laboratory investigations, preparation of drawings, and model or prototype manufacture. (Penton Publishing Company, Automation Vol 2, 1955)

"The accuracy of estimates is a function of the stage of development (i.e. estimates improve as development of the item progress). This also means that estimates for development projects representing only 'modest advances' tend to be better than for more ambitious projects." (A W Marshall & W H Meckling, "Predictability of the Cost, Time and Success of Development", [Report P-1821] 1959)

"The difficulty in project management is how to apply competition between task efforts and between subtask efforts when such things as the task managers' work, schedules, and budgets are all different." (John S Baumgartner, "Project Management", 1963)

"If a given task depends on the completion of other assignments in other functional areas, and if it will, in turn, affect the cost or timing of subsequent tasks, project management is probably called for." (American Management Association, "Management Review", 1966)

"Basic to successful project management is recognizing when the project is needed - in other words, when to form a project, as opposed to when to use the regular functional organization to do the job." (David I Cleland & William R King, Systems Analysis and Project Management, 1968)

"Project management is not universally applicable. The utility of the idea depends on the magnitude of the effort, the complexity, the degree of unfamiliarity and interrelatedness, and the concern with the organization's reputation." (David I Cleland & William R King, "Systems Analysis and Project Management", 1968)

"Project management is needed only for situations which are out of the ordinary; but when the need exists, this may often be the only way by which the task may be handled successfully. These situations require a different attitude on the part of the top management, the undivided attention of a project manager and different methods for control and communications than those used in the normal routine business situation. […] Pure project management assigns complete responsibility for the task and resources needed for its accomplishment to one project manager. The organization of a large project, though it will be dissolved upon completion of the task, operates for its duration much like a regular division and is relatively independent of any other division or staff group." (Executive Sciences Institute, Operations Research/Management Science Vol 6, 1964)

"Project management is the process by which it is assured that the objective is achieved and resources are not wasted. Planning is one of the two parts of project management. Control is the other. [...] Each project must first be planned in detail. Control is involved with comparing actual progress with the plan and taking corrective action when the two do not correspond. Without the plan, true control is not possible; the need for corrective action, its nature, extent, and urgency cannot he accurately determined." (Robert D Carlsen & James A Lewis, "The Systems Analysis Workbook: A complete guide to project implementation and control", 1973)

"Project management is clearly a part of software engineering, and its effective employment plays a major role in reducing the problems associated with delivering software within estimated time and cost." (Richard H Thayer & John H. Lehman, Software Engineering Project Management, 1977)

"If a high degree of certainty exists concerning all major events, operations, and outcomes, project management is not essential." (John R. Adams et al, "Managing by Project Management", 1979)

"The acceptance of project management has not been easy, however. Many executives are not willing to accept change and are inflexible when it comes to adapting to a different environment." (Harold Kerzner, "Project Management", 1979)

"Generally, project management is distinguished from the general management of corporations by the mission- oriented nature of a project. A project organization will generally be terminated when the mission is accomplished." (Chris Hendrickson & Tung Au, "Project Management for Construction", 1989)

"An important part of project management is keeping track of thoughts, assumptions, suggestions, limitations, and the myriad related details of the project." (InfoWorld Vol. 12 (17), 1990)

"A methodology should be as simple as possible to get the job done. If you make the requirements a burden, rather than a help, then people will resist following them. You want to achieve a consistent, workable approach to managing projects, not hang a noose around the manager’s neck." (James P Lewis, "Project Planning, Scheduling, and Control" 3rd Ed., 2001)

"Getting project management to work in an organization requires a change in culture." (James P Lewis, "Project Planning, Scheduling, and Control" 3rd Ed., 2001)

"The entire reason for managing a project is to make sure you get the results desired by the organization. This is commonly called being in control, and it is what is expected of a project manager." (James P Lewis, "Project Planning, Scheduling, and Control" 3rd Ed., 2001)

"Project management is the art of creating the illusion that any outcome is the result of a series of predetermined, deliberate acts when, in fact, it was dumb luck." (Harold Kerzner, "Project Management: A Systems Approach to Planning, Scheduling, and Controlling", 2009)

"Effective project and program management involves more than strict adherence to a prescriptive methodology. Leadership skills, judgement, common sense, initiative, effective communication, negotiation skills and a broad perspective on the surrounding environment are all essential. Project and program management is a creative and collaborative process." (Peter Shergold, "Learning from Failure", 2015)