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Thursday, 7 January 2016

Why Oracle EBS Projects Fail? and How to Fix Them - Part II

4. The Right Resources Aren’t Assigned or Available

It’s difficult to participate in a project and also do your regular job. It sometimes seems that a few people in the organization are asked to do everything. Be realistic when assigning people to different project responsibilities and allocating their time, and recognize when external skills would be more efficient even though the cost might be higher. For example, hiring resources for the upgrade to R12 may seem more expensive than having your DBA try to do it internally, but consultants who perform upgrades day-after-day develop a variety of “lessons-learned” and ways to streamline the process. Additionally, it does not make sense to have your internal DBA spend months on learning to do something that he or she will never need to do again. The time could be better spent on other projects.

5. No Project Champion

Few complex, large-scale Oracle projects are ever successfully completed without someone in the C-suite or other high-level position endorsing and prioritizing the project and its outcomes for the business. Your executive sponsor is critical in ensuring that other lines of business and cross-departmental resources are made available and prioritized to successfully plan, manage, and complete your project.
This is particularly important for IT projects, where dependencies across business units can make or break both the success of the project as well as how quickly and efficiently it can be managed and implemented. IT can initiate many different projects, but without the support of the business they won’t be successful. A project champion can help prioritize projects based on the business needs and then promote the successes within the organization, both in terms of measurable results and in obtaining buy-in from different parts of the organization.

6. Scope is Inappropriate

Many ambitious project managers try to bite off more than they can chew. For example, it’s often much easier to test and verify a single ERP vs. multiple areas at once. It’s probably not the best idea to change operating systems, upgrade to R12, and change your chart of accounts all at the same time. You are shooting at a moving target that introduces a lot of instability with each of the processes. Isolate changes so that they can be tested individually and the users can understand the impact of one change before the next one is implemented.
Break up your project into smaller projects (try for projects that can be completed in 4-6 months, especially early on) to get success and demonstrate momentum. Those early wins can often gain additional credibility and resources to tackle bigger chunks of the entire project. Long projects lose momentum, delays occur because of changing priorities, the requirements change, budgets get cut, and resources are reassigned to the next project or leave the organization, so costs increase.

7. Poor or Inappropriate Metrics

If you know the outcome you’re seeking, you should also be able to define it. And if you can’t define success based on a single or small set of key metrics, it will be difficult not only to “sell” the projects internally to those who will approve budget and resources, but also to communicate success and completion at the end of the project.
Appropriate metrics include benchmarks and baselines for where you’re starting, in addition to success metrics at the end and key milestones along the way. Use all three of these metrics (baselines, milestones, and completion metrics) to make your case up-front and rally budget, resource, and executive support.
Specific metrics to focus on include return on investment (ROI), cost savings, and resource reductions. Include reduction in the number of staff or time required for a particular operation (like reducing closing time from 8 days to 3 days, or days sales outstanding from 20 days to 9 days, etc.) and reduction the number and complexity of spreadsheets required. Tie the project to metrics identifying cost savings. As you communicate metrics at various stages of the project, leverage a communication plan created up-front that details who needs to know what, the levels, channels, and frequency of project update communication, etc.

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