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Is it fair to say that CRM and ERP projects should "never end"?
Achieving success with enterprise software often involves changing how you do business. Is that a one-time hit or should the new approach involve continuous evolution and what's the impact on projects?
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11 Answers
Projects end. Programs don't. A project, by design is a tightly defined scope of effort and outcome which on completion will be measurably successful or not. So, although the CRM program (and the system / systems that support it) will likely never end, the initial project (and subsequent iterative projects to augment or continue to move down the development roadmap) should have a defined beginning and end.
Infusing the organization with the idea that "these projects never end" can be dangerous in that leadership may interpret this to mean: "WARNING: Money pit ahead!". It is my belief that getting "the lingo" out of the way with sponsors and stakeholders early (where possible) and underscoring scope often throughout each project is directly aligned with perceived success and satisfaction with the tool.
The strength of CRM and ERP is in their flexibility. When a marketer, sales organization, service provider, operations team changes their process there is not a need to "throw all their systems away" and start from scratch, but rather knit in the new or changes process to the existing tool.
To address you client's perception: That ERP is a “lifetime employment for the implementation consultants.”
For this client, it's likely that their business needs, processes, integrated systems, poorly defined / delivered previous projects, or the company's offerings are in a state of change. Any one or combination of these creates the need for ongoing expansion or revision. To me, this sounds as if the client needs to review their contracting spend against their realized revenue and maybe take a look at whether or not there is a need to review internal staffing as a potential long term solution. At any rate, many times while the client is grumbling, they're clear that your services are required, and that your delivered project will deliver tremendous ROI. Else, they'd not have been able to secure the capital.
I agree with Vee (above) "Quality is a journey" and clearly one that your client has decided to take.
The projects themselves must end. They need to have definitions of success assigned to them early in the process, including a discrete list of objectives and achievements. The end of the project is the recognition that the tool now belongs to the business rather than the vendor.
At this point, it is suggested that the business (perhaps in conjunction with the vendor depending on how 'consultative' the relationship is) reassess its objectives and define some new goals with regards to the new software solution. It's unlikely during the initial implementation that the business will receive full benefit from an ERP or CRM package. Processes can continue to be refined, additional features will become better known, and business changes may prompt using the software in a slightly different manner.
So, yes, there's an evolution, but it's the concept of the never-ending project that makes it difficult for customers to know if they made a good decision with their ERP or CRM package. Having clear objectives and starts and finishes to projects is key in getting to the point of saying that the implementation was successful.
Don’t know about the “should,” but they never do.
A client refers to ERP as “lifetime employment for the implementation consultants.” Is perception reality?
CRM projects go on and on partly because they involve marketers, who change their minds a lot, and partly because customers are seldom involved. So there is constant internal debate about how to “do” CRM … business more than technical … and an elusive end-point.
To me, ERP and CRM are analogous to an airline’s purchase of planes: big initial outlay, then ongoing outlays for maintenance and periodic updates and improvements. The severity of ERP and CRM post-purchase costs and aggravation depend on how well the “plane” was designed and engineered in the first place. And yeah, you have to ask the “passengers” for their opinions!
All good points. I would add and expand on this to say that it is essential to have defined end points in the long term "program" of acquiring, implementing, maintaining and improving an ERP or CRM system.
Within this long term program as Jennifer points out there do need to be projects with a defined end and basis for determining success.
Without this ERP and CRM implementations can seem to go on forever and management and users can become frustrated and resentful with something that is really a process that goes on forever. The irony is that those who get frustrated are often the same people who interject change that should be really broken out as a new project.
Michael - Change is constant, pervasive and permanent. As Vee said, regulations are changing constantly. Add to that new customer demands, markets, strategies/initiatives, products, competition, global economic uncertainty, etc. All of this internal and external change requires agility to address. Jennifer is correct that a project should end. Yet she refers to "program" which neither an ERP or CRM was intended to be...if they were they would be more agile, easier to implement and change would be inherent in their capability.
Most ERP/CRM implementations take months to implement. During that time more changes are required. Even if these changes are ignored, the second day after the implementation is completed there will be more.
So in that regard projects never end. Michael B's comment "A client refers to ERP as “lifetime employment for the implementation consultants” is accurate. Should it scare the customer regarding Jennifers "WARNING: Money pit ahead!"? Absolutely. If you choose the wrong tool for a job the results will always suffer.
I can take a wrench and pound in a nail. That doesn't mean it is the right tool for the job. ERP is a foundation. It serves as the financial tracking basis of a business. It wasn't designed to accommodate dynamic changes in the underlying transactions employees, vendors and customers execute. As the changes Vee refers to unfold, you find yourself with a wrench trying to drive a nail. Or worse, a hammer trying to tighten or loosen a nut. That will make a project run into the money pit and results in the reality of lifetime employment.
The very easy if not absolute answer is "yes." By definition, all projects MUST end, or they are not projects. But given this 'easy' answer does not serve the spirit of your very complex question, you've received some great comments with wonderful insights and valid contentions. CRM and ERP projects are obviously exceptions - or are they?
I contend they are not - and this is based on something as simple as the "all projects must end" answer. What your respondents appear to overlook is 'process and process management.' (They are not alone in this oversight. I have found process and process management to be the most overlooked, misunderstood and neglected discipline in businesses today.)
When the CRM or ERP project ends (the design and implementation), then ownership and management of the CRM or ERP process begins. Even if the design and implementation of a new business process is deficient, sound process management (ensuring, monitoring, assessing, improving) identifies and corrects those deficiencies. Ownership and management of a process is a 365-day 24/7 endeavor that never ends. Processes, no matter how mature they become, stay babies forever - requiring the constant care and feeding of a devoted, capable and passionate process owner.
So yes, the project must end. But the process, and management of the process, never ends.
Both CRM and ERP projects MUST end, else there is no way of reaping the benefits that the project is supposed to bring (and often does not do) and one is running the risk of endangering the integrity of a business.
By definition a project has a defined scope, budget and timeline. A project should be part of a strategy and an overarching program that are set up to achieve a number of objectives in a sequence of steps (=projects). So, the strategy is the very long term frame for a number of programs, which in turn are divided into a number of projects.
The strategy itself normally evolves over time, which then affects the prioritization of programs and projects. New programs might be added to support the strategy, other programs may be phased out, projects are added, moved up or down the priority list, or projects are removed from the list.
Management and measurement of business improvement, or even adherence to laws and regulation is hardly possible if projects do not end.
Just my $0.02
Cheers
Thomas
ERP, CRM, SCM etc. are automation tools that tailors the external environments into your business processes. The only thing constant is change. As the environment outside is in a constant change of dynamic flux, the "rules" that existed when your initial ERP was implemented get changed by the environment. These have to be factored into the ERP.
Also, as an extension of the above, the GRC rules are changing almost daily, with new legislation being enacted. These have to be factored in also. More important in an ERP than SCM and CRM.
Almost on a year-year basis, there are changes in tax laws and commercial regulations. The ERP module as a whole has to be changed to accomodate these.
Someone had said "Quality is a Journey and not a destination". Similarly, using packages like ERP are journeys.
Cheers!
CRM and ERP projects never end just as the systems they replaced never ended. It is unfortunate that when they first began to be marketed they were heralded as an end all. I guess they are still marketed that way. Successful businesses are constantly changing; they must constantly adjust to changing environments, the economy, fierce competition, shrinking employee pools with unmotivated employees, budget constraints, new business models, media / government attacks, and much more. Their processes and systems must also change or the company may be at such a disadvantage they stagnate and sometimes fail.
Great question and some great answers.
Yes projects do end - as they should be tied to specific project deliverables.
What doesn't end is what you can achieve by creating new projects if you continue to invest in CRM and ERP across a business.
Each project must have MEASURABLE results and ROI.
If these are acheived the project ends and the next set of deliverables and metrics are created.
If 80% of the benefit comes from just doing CRM and ERP properly and utilising out of the box functionality the gains from incremental projects need to be carefully assessed.
One simple question to ask on any given CRM and ERP project is: "How many of my employees leverage and have access to CRM and ERP in whatever form.
If the answer is less than 10% then you have much work to do and many more projects ahead of you. Which of course, keeps us all gainfully employed !
I completely agree with others here that the PROJECT itself must end, otherwise it becomes nothing more than a permanent home for expensive consultants. That said, the business transformation strategy should encompass a long-term view that goes beyond the project itself.
In the long run, the project should be one stepping stone toward realizing business improvements. Toward that end, the project should be one part of a larger master plan. The project may end, but the master plan, strategy, and business improvement should be continuous and ongoing.
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