Two Consulting Myths that can Cost Millions

Nine months ago, I left the world of consulting. Now that I sit on the other side of the table at sales meetings, I often find myself listening to a sales pitch and thinking back on some of the biggest myths that surrounded major consulting projects. 

For anyone who is thinking about entering into a large-scale system implementation, keep these myths in mind the next time you find yourself in awe of a glossy PowerPoint presentation.

The 10-Month Myth: "Sure, we can implement a full ERP system (SAP, Oracle, take your pick) across your entire organization in 10 months." No. Just no. I've walked on to multiple projects with a 10-month project plan. Most of them ended up running from 18-36 months. No one implements an enterprise-wide system in 10 months. Starting with a 10-month plan simply means that you will end up spending extra money in change requests and hiring additional resources, not to mention the stress of explaining to your organization why the project is running months or years behind schedule. This myth is largely perpetuated, though, by myth two...

The Vanilla Myth: "We can implement your system in no time if you go vanilla." "Going vanilla" means that you don't customize the system. You use it exactly as it is designed. Most companies think, with the absolute best intentions, that they can implement a system without making any changes. Six months into the project, they realize they can't. Now, not only do they need to do a lot of re-work to make all of the customizations that they should have been making from the start, but they've also just wasted 6 months of time and money trying to implement a system that was never going to work for them.

Tell me what you think. Has your project suffered because of these myths? Have you been on a successful 10-month ERP implementation?

Do We Really Need Change Management?

There is a great deal of skepticism among consultants and clients alike as to the necessity of Change Management.  Often they don't know exactly what Change Management is or what value it will provide, but they do know that it costs money.  Who can blame them for being reluctant to spend money without a clear understanding of the results they'll get for that investment?

Let's start this conversation with an exercise I use with my clients.  First, raise your hand if you've ever been at a company where they were implementing a new project (e.g., a new computer system, new business processes, organizational redesign).  Now, put your hand down if you've ever seen one of the projects fail.

I've never seen more than one or two hands stay up.

I finish by asking the group to share some of the reasons these projects have failed.  I consistently hear the same reasons over and over again, regardless of the size of the company, the industry, or the type of project.

1. Management didn't support the project.  If my boss wasn't going to make the change, why should I?
2. We didn't receive adequate training.  I didn't know how to use the new system/processes, so I continued doing things the old way.
3. I didn't even know there was a project!  No one told us about the upcoming changes until right before the new system/processes were implemented.
4. I didn't understand why we were making the change.  Taking the time to learn the new way of doing things didn't seem as important as focusing on my day-to-day job.
5. Past projects have either failed or been abandoned.  This project will probably be the same.  Why should I waste my time learning about something we won't be using in a month?

It's unusual to hear someone say a project failed because the technology didn't work.  Instead, it becomes apparent very quickly that when projects fail, it is typically because they ignore the people who are impacted by the change. 

Each one of the reasons for failure listed above can be addressed with a strong Change Management program.  Whether it's a plan to increase Executive Sponsorship, a reminder that employees can't learn a new system through osmosis, or the generation of clear communications, Change Management brings the people-side of a project to the forefront.

Have you seen a project fail?  What was the main reason the project didn't succeed?