As businesses worldwide strive to stay ahead through digital transformation, the need for seamless project execution has never been greater. Nowhere is this more evident than in ERP project implementations, where the complexities of technology and stakeholder demands converge.
S4A’s Vice President of Delivery, Tim Holter, has spent nearly three decades in the SAP delivery space, spearheading numerous successful implementations. Through his extensive experience, he has identified seven key pitfalls that can derail even the most well-planned projects. In this multi-part series, we examine these pitfalls and provide insights to help organizations mitigate risks and drive project success.
In our last article, we explored Pitfall #1: Lack of Executive Buy-in. Now, we turn our focus to Pitfall #2: Improper Stakeholder Representation. Understanding who should be involved, when to involve them, and how to ensure their participation is critical to the success of any ERP implementation.
Who Are the Most Critical Stakeholders in an ERP Project?
“The stakeholders involved in an ERP project vary depending on the project’s focus, but they generally fall into two broad groups,” Holter shares.
- The Business Stakeholders – These are the department(s) or functional areas that will be directly impacted by the ERP implementation. Their role is to ensure that the system meets their operational needs and aligns with company-wide objectives.
- The Information Systems (IS) Team – This is the internal IT department responsible for implementing and maintaining the ERP solution. They must ensure the system integrates with existing infrastructure, adheres to cybersecurity policies, and remains scalable for future needs.
While these two groups must collaborate closely, managing them effectively requires distinct approaches.
The Risks of Inadequate Stakeholder Engagement
“ERP projects are sometimes seen as ‘side projects’,” Holter points out. “As a result, many business stakeholders assigned to these projects are expected to contribute ‘off the side of their desk’ – balancing their regular duties with project responsibilities. This leaves them stretched thin, can significantly impede the project’s quality, and slows down critical decision-making.”
Neglecting to engage representatives from all affected business units during the design phase can have severe consequences. Without their input, critical business processes may be misaligned, leading to confusion, inefficiencies, and resistance when the system goes live.
“Imagine launching a new system only to find that employees across the organization don’t know how to use it,” Holter considers. “The impacts can be catastrophic. In one real-world case, a company failed to secure proper stakeholder involvement, and when their legacy systems were deactivated, employees struggled to navigate the new platform. The result? A staggering 50% reduction in incoming business post-implementation, which caused major revenue disruptions.”
Ensuring Comprehensive Stakeholder Representation
To avoid such pitfalls, organizations must establish a stakeholder engagement strategy early in the project lifecycle. This includes:
- Stakeholder Mapping – Conducting a thorough mapping exercise during the project’s preparation phase ensures all affected business units, geographic locations, and possible process variations are accounted for. This helps identify key decision-makers, champions, and potential detractors.
- Early and Ongoing Involvement – Key business stakeholders should be actively engaged in the user experience design phase. They need to validate and confirm process standardization across departments before the build phase begins.
- Regular Checkpoints – Throughout the realization phase, ongoing review sessions with stakeholders provide opportunities to uncover overlooked requirements and introduce incremental exposure to the new system. This “drip-feed” approach builds familiarity and helps create a network of super users who can advocate for the system post-go-live.
Striking the Balance Between Stakeholder Input and Efficiency
A common challenge in ERP projects is avoiding “design by committee,” where too many voices create decision-making bottlenecks. While every affected group should have a voice, final decisions need to be made efficiently. To achieve this balance:
- Clearly Define Roles and Responsibilities – Each stakeholder should understand their specific role and level of influence in the decision-making process.
- Leverage Proven Methodologies – Using established frameworks like Design Thinking ensures user feedback is integrated effectively without derailing project timelines.
- Ask the Right Questions – Project managers should identify key stakeholders early on. Holter shares his go-to strategy for ensuring the right people are engaged. “Ask questions. Who is using the process? Are there any process variations? Who are the main champions and detractors?”
Building Your Future-Ready Solution Together
Successful ERP implementations require more than just cutting-edge technology—they demand strong leadership, strategic stakeholder engagement, and a commitment to best practices.
At S4A, we bring decades of expertise in SAP project delivery, helping organizations navigate the complexities of IT implementations with confidence. By ensuring proper stakeholder representation, mitigating risks, and driving seamless adoption, we empower businesses to achieve lasting success. If you’re planning an upcoming ERP project and want a trusted partner to guide you every step of the way, we’d love to discuss how S4A can support you in your journey.
