According to global research analysts, 50% of ERP Projects can fail — You need to learn how Leadership and Partners can prevent this!
ERP implementations are high-stakes transformations. Done right, they streamline operations, improve visibility, and enable growth. Done wrong, they drain budgets, frustrate teams, and damage reputations. According to Gartner, a respected global ICT analysis firm, 55% to 75% of ERP projects fail to meet their objectives.
Let’s explore the key reasons why—and how to avoid them.
📉 Common Reasons ERP Projects Fail (with Real-World Examples)
1. Lack of Executive Involvement
ERP is not just an IT upgrade—it’s a business transformation. When executives delegate too much or stay distant, projects lose strategic alignment and authority.
Example: A manufacturing firm launched an ERP rollout without CEO involvement. Department heads made conflicting decisions, and no one had the authority to resolve disputes. The result? Delays, scope creep, and a system that didn’t reflect business priorities.
Fix: CEOs must sponsor the project visibly—attending steering meetings, reinforcing priorities, and empowering teams.
2. Under-investment in People
Expecting BAU staff to lead ERP projects without dedicated time or training leads to burnout and disengagement.
Example: A retail company assigned store managers to lead ERP testing while still running daily operations. Testing was rushed, feedback was minimal, and post-launch issues exploded.
Fix: Assign dedicated project roles, train functional leads, and backfill operational gaps so teams can focus.
3. Poor Change Management
Even the best systems fail if users don’t adopt them. Change resistance is natural—but must be managed.
Example: A logistics firm implemented Business Central but skipped user training. Staff reverted to spreadsheets, bypassed workflows, and created data silos.
Fix: Communicate early, train thoroughly, and assign change champions to support adoption.
4. Unclear Scope and Requirements
Vague goals and undocumented processes lead to misaligned outcomes.
Example: A distributor started implementation without mapping their order-to-cash process. Developers built workflows based on assumptions, which didn’t match reality. Rework cost $250K.
Fix: Document current processes, define future-state goals, and validate requirements with users before build.
5. Data and Configuration Mis-steps
Data migration and system configuration must be strategic—not rushed.
Example: A services company loaded legacy data before finalising system design. Fields didn’t align, reports broke, and reconciliation took months.
Fix: Clean and map data carefully, configure the system first, and test thoroughly before migration.
6. Implementation Partner Misalignment
Your partner can make or break the project. A mismatch in methodology, experience, or communication style can derail progress.
Example: A mid-sized business hired a partner unfamiliar with their industry. The partner used generic templates, ignored key workflows, and failed to challenge poor decisions. The system went live—but didn’t work.
Fix: Choose a partner with relevant experience, challenge your thinking, and offer post-go-live support. Ask for references and case studies.
🧠 What Success Looks Like
A successful ERP implementation isn’t just about going live—it’s about delivering real business value, empowering teams, and setting the foundation for scalable growth. Here’s what success looks like, and how each element contributes. A successful ERP implementation requires:
Visible CEO sponsorship
Dedicated and trained internal teams
Clear scope and KPIs
Strong change management
A partner, like erp365, who understands your business and challenges you constructively
These are detailed further below:
✅ Visible CEO Sponsorship
What it means: The CEO or senior executive is actively involved—not just approving budgets, but showing up in steering meetings, reinforcing priorities, and communicating the strategic importance of the project.
Why it matters: Executive visibility signals to the organisation that the ERP project is a top priority. It helps resolve cross-departmental conflicts, accelerates decision-making, and ensures alignment with business goals.
Example: In a successful retail ERP rollout, the CEO sent weekly updates to all staff, attended milestone reviews, and personally endorsed the new system. Adoption soared, and the project finished ahead of schedule.
✅ Dedicated and Trained Internal Teams
What it means: Key business users are assigned to the project full-time or with protected time. They receive training, understand the system, and are empowered to make decisions.
Why it matters: These users bridge the gap between business needs and technical execution. Without them, requirements are misunderstood, testing is weak, and adoption suffers.
Example: A manufacturing firm assigned trained functional leads to each module—finance, inventory, and production. These leads validated configurations, led UAT, and trained their teams, resulting in a smooth go-live.
✅ Clear Scope and KPIs
What it means: The project has well-defined goals, measurable success criteria, and a documented scope. Everyone knows what “done” looks like.
Why it matters: Scope creep is a major risk in ERP projects. Clear KPIs help track progress, manage expectations, and ensure the system delivers business value.
Example: A distributor defined KPIs like “95% order accuracy,” “3-day close cycle,” and “real-time inventory visibility.” These targets guided design decisions and post-launch reviews.
✅ Strong Change Management
What it means: The organisation prepares users for change through communication, training, support, and feedback loops. Resistance is anticipated and addressed.
Why it matters: ERP systems change how people work. Without support, users revert to old habits, creating data silos and undermining the system.
Example: A services company created a “change champion network” across departments. Champions hosted workshops, answered questions, and collected feedback—boosting confidence and adoption.
✅ A Partner Who Understands Your Business and Challenges You Constructively
What it means: Your implementation partner brings relevant industry experience, listens to your needs, and isn’t afraid to challenge poor decisions. They offer strategic guidance, not just technical delivery.
Why it matters: A good partner helps you avoid pitfalls, adapt best practices, and stay focused on outcomes. A poor partner builds what you ask for—even if it’s wrong.
Example: A healthcare provider chose a partner with deep regulatory experience. The partner flagged compliance gaps early, redesigned workflows, and helped avoid costly rework.
📞 By: Andrew Burn | 🌐 www.erp365.nz | 📍
