Enterprise Resource Planning (ERP) initiatives hold great potential for reshaping organizations, yet they frequently encounter challenges that lead to their downfall. These hurdles encompass various issues, including inadequate change management, deficient project management, misaligned technology choices, overly optimistic expectations, and unclear project scopes. In this blog post, our exploration zeroes in on the influence of project management on ERP outcomes. We specifically delve into the negative repercussions of depending on Internal Project Management Office (PMO) resources compared to involving specialized external project managers in the context of ERP implementation.
Internal project managers, often drawn from positions like IT Managers or other roles within the organization, face several challenges, including:
Difficulty in Managing Project Scope and Navigating Requirement Ambiguity: A project manager shoulders the responsibility of overseeing project scope, encompassing the prevention of scope creep and scope crush. Insufficient familiarity with IT or the relevant industry can result in challenges accurately defining and controlling project scope. This can lead to delays, unmet objectives, and resource overruns.
Communication challenges: Effective communication among technical teams, stakeholders, and technology vendors is critical for the success of IT projects. A project manager without relevant expertise may encounter difficulties conveying intricate technical concepts, leading to misunderstandings and misalignment among project participants.
Risk Mismanagement: IT projects often entail specific risks related to technology, cybersecurity, data privacy, and regulatory compliance. A general project manager may struggle to identify, assess, and address these risks, potentially putting the project's success at risk.
Choosing between Internal PMO Resources and External Specialized Project Managers:
While Internal PMO resources possess a deep understanding of organizational culture, they might lack the specialized technical and industry-specific knowledge required for successful ERP implementations. On the contrary, externally sourced specialized project managers bring targeted expertise but could encounter challenges comprehending intricate organizational dynamics.
Navigating the Challenge:
As organizations grapple with the complexities of ERP implementation, the decision between internal PMO resources and external specialized project managers emerges as a critical crossroads. Achieving the right balance between domain expertise and internal cohesion becomes essential for steering ERP projects towards success and realizing transformative outcomes. Therefore, considering the appointment of an independent outsourced specialized project manager for your ERP or any IT project is crucial. This resource can seamlessly integrate into your team, bridging communication gaps between internal stakeholders and effectively managing the implementation partner for optimal results.
Author: Welcome Simango
Internal (PMO) Project Manager vs Outsourced (specialized) Project Manager