People. Process. Systems.

Ryan Feely
10th March 2021

Why Project Management Matters for ERP Projects Header Image


When we are talking to potential clients, we have noticed that many are unsure why project management matters for ERP projects. They feel like working with a vendor is enough to ensure the project is delivered successfully.


They question if they really need project management as it looks like an unnecessary expense, often adding 10% to 20% to budget costs.


So then why does project management matter?


We believe that there are 3 key areas that project management makes a real difference in:

  • 1. Leadership & Direction
  • 2. Risk Management
  • 3. Realistic Project Planning

Why Project Management Matters for ERP Projects


1. Leadership & Direction

Project management matters as it ensures that projects get the leadership and direction they need to succeed. It helps ensure that what teams are striving to deliver is right and valuable for the business.


Project management also creates clear accountability in the ERP project. Having a defined leader lets people know who makes final decisions as well as where to take ideas or issues to. This can have a massive impact on the success of an ERP project as teams can more clearly see where their responsibility starts and ends rather than saying the dreaded “We are not responsible for that area” when a problem appears.


A project manager will also keep things on track and moving in the right direction by motivating teams and providing support where needed. Project management matters here as teams can get bogged down in minute details that slow progress to a crawl. By providing guidance on what is actually important to the project’s success, a project manager can keep things moving at a good pace.


2. Risk Management

Any ERP project that is undertaken in a business comes with inherent risks. Project management matters because it ensures these risks are managed and mitigated to avoid issues that disrupt the wider business.


Almost all ERP projects can be described as complex projects, with lots of stakeholders and departments involved. Therefore, the risk of disruption is heightened and with it being a core system of your business, any issues can be catastrophic.


Project management will analyse the risks associated with the project and take proactive steps to mitigate them as well as a contingency plan for emergencies. And while unexpected issues can appear, you have a clear leader in place to take control and delegate the responsibility of how to fix it.


ERP projects will rarely go to plan so good project management matters in ensuring adaptability and calm amongst teams when things go wrong.


3. Realistic ERP Project Planning

There is a great amount of difficulty in planning out an ERP project, with timelines and budgets often bordering on fantasy rather than reality.


Project management matters in keeping these ambitious dreams grounded, setting expectations of what can be delivered, by when, and at what cost. A good project manager will be able to set achievable deadlines for teams and keep upper management updated on the progress.

By taking a holistic approach to the project, it is possible to allocate extra resources where they are needed and understand how that impacts the project later down the line.


Summary of Why Project Management Matters

Project management matters in ERP projects as it provides leadership, mitigates risks, and gives realistic planning. Without it, companies risk playing an expensive game of whack-a-mole with never ending problems that cut into the ROI of the project.


If your ERP project could benefit from project management, then get in contact with us today to see how we can help deliver your project successfully.

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