Effective ERP project governance ensures the smooth execution of an ERP project.
Governance primarily revolves around two teams: the delivery team and the steering committee. As part of our ERP Readiness series, our CEO, Robert Jurcec explains the importance of a strong governance structure for implementation success.
In this article, we’ll explore the roles and responsibilities of these teams and shed light on their significance in achieving a successful ERP implementation.
Team 1 – The Delivery Team
The delivery team encompasses both the vendor’s consultants, project managers, and technical resources, as well as the customer’s own subject matter experts, project managers, and product owners. Together, these teams collaborate to bring the envisioned solution to life. In an agile framework, this collaboration is often referred to as the development team.
The delivery team’s purpose is to align efforts, handle configuration, conduct testing, seek sign-offs, and resolve any issues that arise during the implementation process. By combining the expertise of both the vendor and the customer, this team ensures that the project scope and solutions outlined in the contract are effectively delivered.
Team 2 – The Steering Committee
The steering committee is a critical component of ERP implementation governance, providing oversight and guidance throughout the project. Comprising senior stakeholders from both the vendor and the customer side, the steering committee maintains a holistic view of the implementation’s progress.
This team plays a pivotal role in managing people, mitigating risks, addressing issues, and ensuring clear communication across the development team and the broader organisation where the ERP system is being rolled out. By staying informed about the project’s status, the steering committee can provide support, remove obstacles, and keep everyone aligned with the project’s goals.
The steering committee typically includes key individuals such as the CFO, CEO, and other decision-makers. Depending on the decisions that need to be made, additional team members may join the committee temporarily. This flexibility allows for dynamic adjustments and quick responses to emerging challenges during the implementation.
The importance of ERP project governance
Effective governance in ERP implementations facilitates seamless coordination, minimises disruptions, and ensures the project stays on track. By having a dedicated delivery team and a proactive steering committee, organisations can:
- Maintain Transparency: The steering committee ensures that senior stakeholders remain informed about the project’s progress, risks, and issues. This transparency empowers decision-makers to take necessary actions and allocate resources effectively.
- Support the Development Team: By understanding the project’s status, the steering committee can provide the necessary support to the development team. This includes facilitating resource availability, encouraging timely testing, adhering to project plans, and resolving any roadblocks.
- Minimise Changes: Through active governance, the steering committee helps minimise unnecessary changes to the project scope. By carefully evaluating proposed changes, the committee ensures that alterations align with the organisation’s strategic objectives and do not compromise project timelines or budgets.
- Enhance Risk Management: With a steering committee in place, potential risks are identified and addressed promptly. By regularly assessing risks and establishing mitigation strategies, the committee helps safeguard the implementation’s success and protects the organisation’s interests.
Governance is the backbone of a successful ERP implementation. By establishing a robust delivery team and an engaged steering committee, organisations can navigate the complexities of ERP projects with confidence. Collaboration between these two teams promotes effective communication, streamlines decision-making, and ensures alignment with project goals.
Remember, effective ERP project governance is not a one-time effort but an ongoing commitment throughout the implementation process. By investing in sound governance practices, you can maximise the value of your ERP investment and position your organisation for long-term growth and success.
If you have questions about NetSuite ERP
NetSuite is a full, cloud-based enterprise resource planning (ERP) suite that gives organisations what they need to run efficiently and accelerate seamless scalable growth. Supporting 37,000 customers in 219 countries and territories worldwide, NetSuite has everything you need to grow, in one place, on a single cloud platform.
The OneKloudX NetSuite Solution Provider team is here to provide the information you need when considering NetSuite ERP. Our well-trained employees have a track record of success in providing scalable cloud solutions which adhere to our FlexSafe™ methodology standards which has a 100% success rate. Our award-winning team helps you get the most value from NetSuite, so you can focus on what really matters – your customers, your people and your business.
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