The Recovery Decision#
ERP implementations go wrong. The question is not whether problems will occur, but how to respond when they do. Recognising trouble early and responding effectively can salvage a struggling project.
Recognising the Signs#
Early Warning Signs#
Schedule slippage: Milestones consistently missed or pushed.
Budget burn: Spending ahead of plan with little progress.
Stakeholder disengagement: Key stakeholders stop attending meetings.
Scope expansion: Constant additions without corresponding timeline/budget changes.
Quality issues: Testing reveals more defects than expected.
Critical Warning Signs#
Go-live in doubt: Realistic assessment suggests go-live will not be achieved.
Vendor concerns: Implementation partner raises serious concerns.
Executive intervention: Senior leadership questioning project viability.
Key resource departure: Critical internal or external resources leaving.
Assessment Approach#
Before deciding on recovery action, conduct honest assessment:
Current state: Where is the project actually? Not where is it reported to be.
Root causes: What has caused the problems? Not just symptoms.
Remaining work: What work remains to achieve go-live?
Resource status: Are required resources still available?
Stakeholder position: What do key stakeholders want to happen?
Recovery Options#
Option 1: Course Correction#
Minor adjustments to get back on track.
When appropriate: Problems are recent and contained. Root causes are addressable.
Actions: - Address specific problem areas - Adjust timeline and/or budget - Strengthen project management - Improve stakeholder communication
Option 2: Scope Reset#
Reduce scope to achieve achievable go-live.
When appropriate: Original scope was unrealistic. Budget/timeline cannot be extended.
Actions: - Define minimum viable scope for go-live - Defer non-critical functionality - Adjust stakeholder expectations - Plan subsequent phases
Option 3: Timeline Extension#
Extend timeline to complete full scope.
When appropriate: Scope is appropriate but timeline was unrealistic. Budget can accommodate extension.
Actions: - Reset timeline with realistic milestones - Address causes of original optimism - Secure renewed stakeholder commitment - Maintain team continuity
Option 4: Partner Change#
Replace implementation partner.
When appropriate: Partner is a significant contributor to problems. Relationship has broken down.
Actions: - Evaluate alternative partners - Negotiate transition with current partner - Conduct knowledge transfer - Reset timeline with new partner
Option 5: Complete Restart#
Abandon current implementation and start over.
When appropriate: Fundamental problems with vendor, scope, or approach. Sunk costs are significant but continuing is worse.
Actions: - Document lessons learned - Conduct vendor re-evaluation - Reset scope and timeline - Build new team
Option 6: Abandonment#
Walk away from ERP implementation entirely.
When appropriate: Business case no longer valid. Organisation cannot sustain another attempt.
Actions: - Preserve existing systems - Document decisions - Manage stakeholder communication - Plan for future needs
The Recovery Team#
Recovery requires different skills than initial implementation:
Fresh perspective: Someone not invested in the original approach.
Political capital: Someone who can make difficult decisions stick.
Technical credibility: Someone who can assess technical status honestly.
Change expertise: Someone who can manage stakeholder expectations.
NZ/AU Considerations#
Limited partners: Fewer alternative partners available for partner change.
Cost of international expertise: Bringing in recovery specialists is expensive.
Market reputation: Failed implementations affect local reputation.
Conclusion: Act Early and Decisively#
The worst response to implementation problems is denial. Problems that could be addressed with course correction early become scope resets later and complete restarts eventually. Honest assessment and decisive action maximise recovery probability.