Rescuing a Failing ERP Implementation in 90 Days
A $60M manufacturer was on the brink of litigation with their system integrator. The project had stalled, the budget was exhausted, and executive confidence was gone.
The Situation
A $1.2M Investment Going to Zero
A mid-sized manufacturing company with an annual revenue of approximately $60 million was struggling with a failing ERP implementation. The project had stalled, with only the Accounts Receivable module implemented, even though the initial budget of $1.2 million was meant to cover the entire implementation: Accounting, Production, and Supply Chain.
Facing a mounting crisis, the company was on the verge of taking legal action against the system integrator. Management and the implementation team had reached a complete impasse. That is when they called us in to assess the situation and chart a new course.
What Was Breaking
Five Critical Failures
Management and Vendor Impasse
Mounting frustrations with missed deadlines and budget overruns pushed the relationship to the brink of litigation. Both sides were preparing for court instead of focusing on delivery.
Lack of Executive Engagement
While supportive of the initiative, the management team lacked the active engagement required for a project of this scope. Limited oversight created significant roadblocks.
Absent Change Management
Change management efforts were almost non-existent. Employees at all levels were struggling to adapt to the new system and were unsure of its potential benefits.
Misaligned Vendor Promises
The ERP vendor had assured the company that implementation would be straightforward with minimal support. This proved unrealistic given the lack of in-house experience.
Organization-Wide Inexperience
The entire team, from IT to upper management to operations, had limited knowledge of ERP implementations. Without independent guidance, the project continued to spiral.
What We Did
Independent Intervention
Conflict Mediation and Strategic Realignment
We acted as a neutral party to mediate between the management team and the system integrator, allowing both sides to refocus on shared objectives instead of potential litigation.
Budget Adjustment and Scope Redefinition
After reassessing the project scope, we recommended revising the budget to $2 to $2.5 million to cover the necessary resources for a complete implementation. This increase was necessary to achieve their goals and avoid further costly delays.
Structured Change Management
We introduced a structured change management framework to guide employees through the transition, including training sessions and clear communication strategies.
Independent Governance Oversight
As an independent consultant, we provided neutral, expert guidance throughout, ensuring accountability, effective project governance, and alignment with best practices.
The Outcome
From litigation to delivery.
With these adjustments, the company regained control over their ERP implementation. The revised approach addressed critical organizational challenges, resolved the impasse with the system integrator, and restored confidence at all levels. They moved forward with an implementation that would ultimately support their long-term goals.
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