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How To Avoid PM Tool Implementation Failure

By Dennis Sommer (www.dennissommer.com)


Business and IT executives need to understand why enterprise project management tools have failed in the past before they move forward with a new EPM initiative. It’s more a case of the organization’s need and culture than the tools themselves.

There was a time, years ago, when very few organizations thought of integrating project information into one view. Back then, the organizations and IT departments were smaller and fewer projects were in process at the same time. There was no need for an enterprise project management solution since there was always one person who knew everything about every project going on in the company.

Today, your organization may have hundreds of small projects going on simultaneously and the projects tend to move quickly. It is impossible for one person to keep up to date on all the projects, let alone make an important enterprise decision based on this information.

Senior executives find the idea of seeing a real-time “Dashboard” of project information very appealing. Managers like the idea of analyzing a single database of project information concerning staffing, schedule impacts, and project impacts to the business like production, inventory, costs, etc.

This “Enterprise Visibility” trend has the project and process management vendors building enterprise solutions. Every vendor today demonstrates how their solution will provide executive management with a “Dashboard” of project information.

So, why have these enterprise project management tool implementations failed?


EPM Tools are not able to meet everyone’s need within the company

Executives, managers and project teams within departments have different information needs. One tool often does not provide the necessary data required by each department and management level.

Many of the failed projects were sold to the executives and then pushed down within the organization as the “project management standard” that will be followed by everyone. The concept of one standard, improving project efficiency, reducing costs, and improving quality was the key selling point. Unfortunately, the staff who actually perform the work and generate the information were not consulted on how this strategy would affect the distribution of project information. Generally, project teams are productive only when they have tools that are suited for their particular purpose. Different industries, departments, and project teams may require unique processes and data metrics to be most efficient.


Solution 1: Improved Software Evaluation

All levels of the organization must be involved in the decision process. Before any tool can be discussed, the business needs and requirements must be gathered from the executive level down to the actual project teams using the data and then across all departments and business units within the organization. Each team should be represented in the requirements gathering, scope definition, and evaluation process. Tools evaluated by staff close to the actual work are almost always better suited to select a tool that will improve their productivity and ultimately improve quality and reduce costs.


Solution 2: Vertical Market Specialties

Enterprise Project Management vendors are adjusting their product strategies to counter these project failures. All purpose, project management suite vendors find themselves going back into specialized markets. We now find enterprise packages that use best practices specializing in Automotive, Construction, Manufacturing, Healthcare, Application Development, etc. Solution options have now expanded, with the option to have one enterprise vendor who handles many vertical project management markets.


Summary

Therefore, are we going back to a Best of Breed solution approach? The answers is, if one vendor can provide an integrated solution that meets the different needs of your vertical markets/departments, there are many advantages to an integrated tool suite. If one vendor can not meet your needs, it would be best to implement a best of breed solution. For those organizations that require a single “Executive Dashboard” and can not get this through a Best of Breed solution set, this can be developed using a Portal tool to consolidate information and distribute throughout the organization.

At the end of the day, consolidated enterprise project management information will add value to the organization. Your approach to the product purchase and implementation will determine if the project is successful.


About The Author - Dennis Sommer


Dennis Sommer is the founder and CEO of Executive Business Advisers, a management consulting firm helping senior executives maximize both sales and profit growth. Dennis specializes in strategic planning, sales, marketing and operations performance improvement.

Dennis is a highly sought after author, keynote and seminar speaker on sales, leadership and business best practices.

Contact Dennis at www.executivebusinessadvisers.com or www.dennissommer.com .





Executive Business Advisers

Sales and Profit Improvement Specialist



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