IDG Contributor Network: Fear of premature escalation (FPE): Diagnose and treat this silent ERP program killer

May 14, 2019, 11:55 am

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Every best practice paper I've read and conference I've attended has identified having a solid project risk and issue management process as a critical ERP program success factor. So why is it that major problems in ERP programs, whether they are technical, process or resource allocation related, surface too late or not at all?

I think that a root cause is a project team affliction which I identify as Fear of Premature Escalation or FPE. FPE can be isolated to a single team member or be systemic throughout the entire project team. It can afflict internal teams, system integrators, software providers and independent consultants alike. The symptoms are difficult to detect but the affliction can be deadly for an ERP project.

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IDG Contributor Network: System integrator risk mitigation processes often have the opposite effect

June 6, 2019, 4:24 am

≫ Next: IDG Contributor Network: Feeling handcuffed by your current IT vendor? Here’s how to increase your renegotiation leverage

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I’m going to go on a bit of a rant here.

I’m getting fed up with all of the IT project horror stories I have been reading and writing about. How can it be that projects continue to go wildly over budget or result in significant business disruptions but profits by systems integrators continue to rise? How is it that with fixed price contracts, modern implementation tools, and supposed sophisticated project management capabilities, clients are still getting burned?

After giving this some serious thought, I have concluded that the risk management processes proposed and implemented by most of the big SI's are seriously flawed and likely increase (not minimize) the client’s risk profile.

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IDG Contributor Network: Feeling handcuffed by your current IT vendor? Here’s how to increase your renegotiation leverage

September 16, 2019, 6:18 am

≫ Next: IDG Contributor Network: High performing multi-vendor transformation teams – How to make it work

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In 2019 the global market for IT services will exceed one trillion dollars.  Roughly 1/3 of that business will be contracts that come up for renewal and one third of that business will be retendered.  One thing that is certain is that contract renewal is big business.  It is also clear that the incumbent vendor will have significant negotiating leverage.  If the proper counter measures are not applied, customer negotiating teams will be transferring a significant portion of shareholder value over to their providers.

Are your outsourcing contract terms on the horizon? If so, you generally have four options:

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IDG Contributor Network: High performing multi-vendor transformation teams – How to make it work

November 27, 2019, 10:47 am

≫ Next: 4 lessons from the Hertz vs. Accenture IT disaster

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With the advent of digital technologies, hybrid cloud solutions and the evolution of ERP implementation models that demand higher levels of participation from the software vendors, the necessity to put in place high-performing multi-vendor teams is becoming more common. Program leaders are having to increasingly deal with vendors that have misaligned incentive plans or are looking to target each other’s project territory.

One model to minimize the issues associated with the multi-vendor environment is to effectively hand the entire problem to one system integrator. In this model, the client places the full burden of sourcing and contracting with the systems integrator. Clients will typically pay anywhere from a 10-20% premium for this arrangement over and above what they would have paid to develop a DIY model. The downsides of this approach (beside the cost uplift penalty) include vendor lock-in, making it nearly impossible to shift vendors once the program has started, and the potential loss of agility to shift directions and approach if the SI has established a vendor relationship that lacks flexibility.

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4 lessons from the Hertz vs. Accenture IT disaster

February 5, 2020, 3:00 am

≫ Next: 5 tips for navigating supplier relationships in an economic downturn

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Project successes tend to result in a lot of the same conclusions that every team identifies (e.g., we had a great team in place, or we had good leadership supporting it). Disasters, on the other hand can offer some of the best learning opportunities.

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(Insider Story)

5 tips for navigating supplier relationships in an economic downturn

March 30, 2020, 3:00 am

≫ Next: 5 tips for executing a successful ERP go-live

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As hard as it is to find a silver lining right now amid the general nervousness, restructuring of portfolios, and cost-cutting, economic downturns also present opportunities that were not previously planned. As anyone who has lived through a recession like the stock market crash of 1929 or the financial bust of 2008 can tell you, plans can change a great deal pre- and post-recession.

Today, the global pandemic is shifting the dynamics of digital transformations in three primary areas: 

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5 tips for executing a successful ERP go-live

April 3, 2020, 3:00 am

≫ Next: A CIO's checklist for executing the COVID pivot

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(Insider Story)

A CIO's checklist for executing the COVID pivot

April 22, 2020, 3:00 am

≫ Next: Zo haal je het meeste uit je contractmanagement

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In a previous blog post, I discussed the less evident short-term impact of COVID-19 on your digital transformation programs, but there are so many longer-term implications.  Will the current economic crisis have an impact beyond 2020?  I believe the answer is yes, and it could be significant.

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(Insider Story)

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Zo haal je het meeste uit je contractmanagement

September 19, 2019, 2:52 am

≫ Next: 10 ways to get value from your system integrator's quality review

≪ Previous: A CIO's checklist for executing the COVID pivot

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In 2019 zal de wereldwijde markt voor IT-diensten meer dan een biljoen euro bedragen. Ruwweg een derde van die business zal bestaan uit contracten die voor vernieuwing in aanmerking komen en een derde zal opnieuw worden aanbesteed. Eén ding is zeker en dat is dat contractverlenging een big business is. Het is ook duidelijk dat de zittende leverancier een aanzienlijke hefboomwerking zal hebben bij de onderhandelingen. Als de juiste tegenmaatregelen niet worden toegepast, zullen de onderhandelingsteams van klanten een aanzienlijk deel van de aandeelhouderswaarde overdragen aan hun leveranciers.

Staan uw outsourcingcontracttermijnen op de agenda? Zo ja, dan heeft u over het algemeen vier opties:

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10 ways to get value from your system integrator's quality review

July 14, 2020, 3:00 am

≫ Next: 6 challenges of agile at scale for ERP

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System integrators (such as Accenture, IBM, EY, Deloitte, PwC, Capgemini, etc.) often price regular quality reviews as a requirement in their large engagements.  These reviews are designed to ensure the overall quality of the program as well as provide an independent view of risks and issues.  But in many cases, the balance of benefits from these reviews has shifted from the client to the system integrator (SI). I’ve even heard these reviews referred to as the SI’s “Quality Tax.”  Fortunately, there are steps you can take turn that tax into value.  

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(Insider Story)

6 challenges of agile at scale for ERP

September 29, 2020, 3:00 am

≫ Next: Why ERP projects fail: Finding the gaps in your program plans

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Agile has been around for a long time by IT standards and has proven to be successful for many companies.  As companies have evolved and progressed through the pioneering stage of agile, there has been a tendency to take on larger and larger efforts. There have even been inroads made in the application of agile to support the deployment of ERP (projects that are notoriously complex with a significant amount of integration).  But the benefits of agile that were derived from smaller-scale efforts have not naturally transferred to agile projects at scale.

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(Insider Story)

Why ERP projects fail: Finding the gaps in your program plans

December 22, 2020, 2:00 am

≫ Next: 5 critical steps to relaunch a transformation initiative

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In recent years, CEOs and CFOs are being held to greater account for the financial, operating, and brand damage that is being delivered by poorly executed ERP replacement initiatives. 

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(Insider Story)

5 critical steps to relaunch a transformation initiative

January 20, 2021, 2:00 am

≫ Next: 10 steps to avoid digital transformation failure

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COVID-19 has clearly changed the way that many of us operate in our day-to-day jobs and it will likely be a defining point in history that will mark the next generation, in much the same way as the Space Shuttle Challenger explosion or the 9/11 attacks.   

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(Insider Story)

10 steps to avoid digital transformation failure

March 11, 2021, 2:03 am

≫ Next: Why steering committees fail to engage (and 5 ways to hold them accountable)

≪ Previous: 5 critical steps to relaunch a transformation initiative

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Most companies will face the moment where digital transformation will come to the top of the executive stack of priorities.  Typically, one or two executives are selected as the sponsors tasked with putting together the business case and the team to lead the organization into the future. 

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(Insider Story)

Why steering committees fail to engage (and 5 ways to hold them accountable)

April 15, 2021, 2:00 am

≪ Previous: 10 steps to avoid digital transformation failure

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On a recent engagement, I was asked by the transformation executive to review a report he had provided to his steering committee.  My immediate reaction was, "Where is the ask?"  He looked at me a bit puzzled and asked, "What do you mean?"   From there we got into a great conversation regarding the purpose and intent of transformational steering teams.  After getting off the Zoom call I immediately jotted down my notes figuring the conversation may be valuable to a much larger group.  

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(Insider Story)

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