The Top 8 Reasons Why SAP

Projects Fail
By: Matt Angerer

The first time I touched SAP was in 2002 at Unilever HPC. I believe it was v4.6c. It
was my first job out of college as an EDI Systems Analyst and I didnt know the
difference between VA01 and VF01. If youre an SAP professional, Ill leave it at that.
However, after 6 months working in a very supportive eBusiness Connectivity team,
I could navigate my way not only through the order-to-cash cycle, but picked up a
few tricks of the trade monitoring IDOCs and testing both inbound and outbound
transactions from a variety of systems and partners. Looking back, we had an IT
Manager who was a real stickler for details. She would closely analyze my deliverables
and provide constructive advice of how I could improve next time around. MaryAnn
was a firm believer in continuous improvement. Although I didnt fully grasp the
impact her leadership style would have on me at 23 years old, many years later as I
faced more difficult challenges on SAP implementation projects, her impact was
clear. She embodied the key characteristics of a strong leader by how she interacted
with her employees and managed her projects.
Our projects ranged from on-boarding Wal-Mart on AS2 (EDI over the Internet) to
redefining how the eBusiness Team handled Advanced Ship Notifications
(ASNs) errors. Her approach hinged upon four key factors: timelines, affordability,
objectives, and soundness of targets. She knew the importance of having an overall
strategic plan that guided the eBusiness team, but also understood that inaccurate
time estimates could spell disaster. By balancing these two aspects masterfully, she
was able to dictate the direction of the SAP eBusiness Team.

Fast forward 15 years and Ive had the privilege of assisting in over 10 SAP
implementations (ECC, CRM, S/4 HANA) across 7 different industry sectors. Each of
these projects came with certain successes and failures. However, throughout
these SAP projects Ive carefully noted the main reasons for their failures and
successes. In this article, I want to provide a breakdown of reasons why Ive seen
SAP projects fail. Of course there are a myriad of other factors that can influence a
project, but in my opinion these 8 reasons are why certain SAP projects fail.
1) Lack of a strategic plan. In their eagerness to launch an SAP project, many
people dive into the project without developing a strategic plan. There are many
hallmarks of poor planning, but here are five of the most common planning errors:
Jumping into a project without considering results of similar, past projects
Launching a project without involving key stakeholders
Failure to consider costs or set budgetary parameters
Minimizing the complexity of developing software
Moving forward without setting up a schedule to assess progress on
deliverables
Its easy to get caught up in the whirlwind and excitement of a new project. Youre
eager to move ahead and prove yourself, but you can avoid these mistakes by
involving key stakeholders in your strategic planning meetings and by establishing
performance measures to help gauge project progress. Finally, you should always
analyze the results of past projects as you map out your strategic plan.

2) Inaccurate estimates of time required for project completion. A carefully

formulated estimate of the timeframe required for a project plays a critical role in
its overall success. Poor timeframe estimates can lead to lost revenue and low
client-satisfaction. Below is a look at some factors that contribute to poorly
configured estimates:
Creating estimates without involving the frontline staff who will be doing the
work
Basing estimates on guesses or wishful thinking
Offering an overly optimistic estimate in an effort to secure a clients business
Ignoring completion timeframes for past projects
Failure to provide updates on time estimates as deadlines approach
Providing accurate estimates is best achieved by using proven tools and techniques
such as three-point estimating. Additionally, project teams should review
completion timeframes for similar projects completed in the past, providing regular
updates for the client on project timeframes.

3) Poorly defined project scope. One of the key responsibilities of the SAP
projects manager is to outline the scope of a proposed project. Scope refers to the
amount of work required to complete a projects objectives and deliverables. Some
of the key errors related to poor scope management of a project include the
following:

A project scope that lacks clarity and definition

Inability to define accurate budgetary parameters due to a poorly defined
scope
A project team that lacks direction due to poorly defined objectives
Making scope changes without the input of key stakeholders
Project managers can improve the way that they define and manage a projects
scope by making sure that a project is carried out in pre-established segments with
the involvement of stakeholders. Any changes to a projects scope should be clearly
conveyed to all parties involved.

4) Poor risk management. Avoiding discussion of project risks is like viewing a

project through rose-colored glasses and is a recipe for project failure. Risks should
be identified, assessed, and properly managed through acceptance, avoidance, or
mitigation. Unfortunately, many projects are initiated with the following risk
management mistakes:

Launching a project without considering any risks or their potential impacts

Considering only the positive ways that a risk can impact a project
Discussing risk in a general, all-encompassing fashion
Failure to regularly reanalyze risks as a project unfolds
Proper risk management can help eliminate barriers to success for an SAP project.
Strategies to help manage risk include categorizing identified risks, involving
stakeholders in risk management discussions, and periodically updating risk
registers.

5) Insufficient testing. My favorite. Successful SAP implementation rarely

occurs without a robust testing strategy. While it may seem intuitive to test a
product prior to implementation, there are too many cases in which projects are
labeled Completed without ensuring that design requirements are met. Below are
some common examples of insufficient SAP testing:

Testing resources are inadequate

The individuals performing the testing lack expertise
Poorly maintained testing documentation
Testing is biased, or conducted by people aiming to prove the software
functions properly as opposed to identifying flaws
Many of these issues can be eliminated by creating a comprehensive test plan that
is reviewed with stakeholders in advance of testing. Additionally, the testing
process should be overseen by an experienced test lead who emphasizes the
importance of documentation.

6) Human resource challenges. A smooth SAP implementation is best achieved

with the support of a well-organized, highly motivated team of professionals. SAP
projects should be managed by an experienced leader who can keep a project on
track and quickly address underperformance. Below are some examples of human
resource issues that can impact a project:

Ignoring conflict between team members

Spreading resources too thin, or across multiple projects
Failure to consider training time when preparing time and cost estimates
Waiting to address underperformers until it is too late
Addressing human resource challenges requires project managers to quickly
diagnose and address key causes of subpar performance and conflict between team
members. Each project should operate according to a schedule that is designed in
advance of implementation, and team members should be trained to properly cope
with conflict.

7) Failure to engage stakeholders. Communicating with stakeholders is often

vital to the success of a project. In addition to serving as key project advisors,
stakeholders often lend financial support and expertise that can contribute to
project success. Make sure to avoid the following stakeholder pitfalls:

Seeking stakeholder involvement only after a problem develops

Ignoring stakeholder goals and desires
Failure to maintain documentation for meetings and risk management
discussions
Transparency is the key to stakeholder engagement. Through open communication
and meeting inclusion, project managers can keep stakeholders engaged in SAP
projects.

8) Inadequate Project Management. Ideally, project management combines

skills, expertise, resources, and strategic planning to meet or exceed project
requirements. Creating a new software product is an example of a project that
requires quality project management. Unfortunately, there is a host of project
management errors that can impact a projects success. A few of these errors are
as follows:

Devoting too much energy to processes as opposed to a projects outcome

Insufficient leadership and training
Failure to address problems when they arise
Short-sightedness, or the inability to focus on long-term successes