June 14, 2011

ERP Project - Key Success Factor 7: High Communication Standard

Communication is one of the key functions in an ERP Implementation project. It is very critical,to include a comprehensive communication plan, as part of the organizational change management & ERP project planning. This is , to ensure that everyone understand the new ERP system, their role clarity and how it would affect them. Here, everyone refers to internal stakeholders (employees), executive stakeholders (top management) & external stakeholders (customer, vendor etc.,) in an organization.

Internal stakeholder (employees) communication examples for the ERP Project are
  • Frequent project status reporting
  • Role Clarity for all the project team members in terms of the information they have to impart & receive
  • When to impart their current process & business requirements to the vendor
  • When to be trained, to provide the master & transaction data & data migration plan
  • How their business processes & daily tasks would be affected

Executive stakeholder (top management) communication examples for the ERP Project are
  • Frequent project status reporting
  • Major risks identification & their mitigation plan
  • Key Decision to be made

External stakeholder (customer, vendor etc.,) communication examples for the ERP Project are
  • Frequent project status reporting
  • Precautions taken to ensure customer deliveries aren't delayed
  • Requirements / data they need to provide for the project
  • Changes to the ways orders will be processed

Such proactive communications among all the stakeholders would help lessen the curiosity & uncertainty of an ERP Project Implementation. They are important to an effective organizational change & ERP project ROI and should be cautiously planned during the ERP project.

During an ERP Implementation Project, the project manager must communicate frequently to all stakeholders (up & down the organization) the following among other things:
  • Project Objectives, Milestones & Deliverable – Plan vs Actual
  • Project Risks / Constraints & Mitigation Plan
  • Time, Effort & Cost – Budget vs Actual
  • Impact of new ERP system across all the business functions of the implementing organization

Communication management system, include the following among other things:
  • Objectives identification - Identify the information needs of all the ERP project stakeholders
  • Plan development - Communication targets, required information & time intervals
  • Plan execution

The project team members should know what their tasks are and how & when to accomplish them. This would ensure that the ERP project progress is on time within the budget. Also, the project manager can effectively monitor the project progress, only when he knows what the project team members are supposed to do & their actual status. The project manager should be able to communicate both up and down the organization, and command the respect of the software vendor, implementer, and many diverse resources.

Sustaining transparent, precise & frequent communication mediums with all the project stakeholders is important to ensure the smooth project progress. It is important that the communication is clear and consistent. The ERP project implementation would run more smoothly, once all the project stakeholders know what & when to expect from each other.

2 comments:

  1. You are right that its very important to have a comprehensive communication plan, as part of the organizational change management & ERP As business terms change very frequently so to keep synchronized is necessary.
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  2. Greatful informations on ERP solution.
    It looks like you spend a large amount of time and effort in writing the blog. I am appreciating your effort.
    To implement erp project organization must perform an honest assessment of various business needs.ERP project plan is built using a project management package that permits one to focus on planned activities from various perspectives.
    Thanks for sharing such a nice blog...

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