I’ve been involved with more than 300 ERP evaluations and implementations over the last 35 years. Along the way, I’ve learned a thing or two and want to share this with you.
Here’s what no one tells you but should.
ERP failures start on day one of your evaluation process. Not when the implementation begins. Not when the system goes live. But on the day, you start your software evaluation process, at the very first meeting. That’s because, instead of focusing on the most important question (what business problems are we solving?), we focus instead on things like software features, RFP development and scheduling software demonstrations.
So, how should an ERP project actually work to ensure a successful outcome?
- Define success in business goals that mean something to your company, and not in the form of tasks. For example, “Reduce our total inventory value by 25%” is a goal, whereas “Cut over to the new system by the end of Q1” is a task. Your executive team needs to start with the definition of measurable business outcomes. If they cannot agree on these, then stop the process until they do.
- Prioritize your list of business problems and desired outcomes in order of importance and define the ERP project scope from there. Do not define the scope from a features wish list.
- Don’t fall into the RFP trap. Skip the 300 questions that boilerplate RFP’s ask. That’s the easiest way to purchase the wrong ERP system. Instead, use your list of business problems and desired outcomes to build a tight (one or two page) list and ask potential ERP providers how their software will address them.
- Insist that your ERP demonstrations focus on your company’s most complex processes. Your prospective ERP vendors should demonstrate your most complicated processes, using your data. If they cannot (or will not) do this, then eliminate them. Period.
- Make sure your business users own the new ERP system, right from the start. Your new ERP system is NOT an IT project. Your business users will be the ones living with the outcome, so it’s critical that they own the process – and the decision. If they don’t, failure, or at the very least, some serious re-implementation costs, will follow.
- Be flexible to alternative processes. Probe for and then take advantage of your ERP provider’s deep experience with companies like yours, and don’t just replicate your old ERP system. Make sure your team is open to adopting new techniques to delivering your company’s “secret sauce.” Listen for and pay close attention when your team says, “that’s how we’ve always done it.”
- It’s not about price. The difference between a “cheap” ERP system that does not address your unique goals, and one that costs more, but that puts your business in a position to succeed, is probably no more than the cost of a single administrative person. So, I ask the question… If adding a single new admin would radically improve your company’s entire business, would you do it? Of course you would. Think of the new ERP system that way.
Selecting an ERP system will dramatically impact your business for 10, 20 or 30 years to come. It’s likely as strategic a decision as any you will make this year. Treat it as such, and your new ERP system will transform your business, unlocking your engine for growth.
ERP Success Is an Ongoing Commitment
Even with the right foundation in place, ERP success doesn’t stop at go-live. That’s just the beginning. The most successful organizations treat their ERP system as a living, evolving part of their business strategy—not a one-and-done project. Regular system reviews, ongoing training, and continuous process improvement should all be built into your ERP roadmap.
Your team will change. Your customers will change. Your market will change. And your ERP system should support you through all of it. Build in checkpoints every 6 to 12 months to evaluate how well your ERP is supporting your original business goals. Are you tracking the KPIs you defined during the evaluation phase? Are you identifying new opportunities to automate, simplify, or scale?
And finally—don’t underestimate the value of your implementation partner. Choose a partner who’s as invested in your long-term success as you are. You want more than a vendor—you want a guide. A true partner will challenge you to think differently, advocate for best practices, and help you make decisions that benefit the business—not just the IT department.
The difference between ERP failure and ERP transformation comes down to ownership, clarity of purpose, and a willingness to evolve. Start with the right strategy, commit to the journey, and the results will speak for themselves.
May 22, 2025
