Tales Of System Implementer Shenanigans: Part 1 - Bait and Switch

Bait and Switch

Enterprise Resource Planning (ERP) systems are an essential tool for modern businesses to manage and integrate their various operations. However, implementing these systems can be a daunting task for organizations, and they often rely on external consultants and implementers for support. Unfortunately, many large ERP system implementers resort to unethical tactics to secure contracts with these organizations, compromising the integrity of the implementation process. This series will explore some of the dirty and unethical tactics used by large ERP system implementers to secure contracts and win as much as they can at all costs.

1. Tales Of System Implementer Shenanigans: Part 1 - Bait and Switch
2. Tales Of System Implementer Shenanigans: Part 2 - The Accelerator Trap
3. Tales Of System Implementer Shenanigans: Part 3 - Ballooning Billable Hours

'Bait and Switch' is usually the first tactic used by large ERP system implementers which involves presenting their most talented and experienced resources during the courting stage, giving the impression to the client that this is the team that will be working on their project. They may even go so far as to say "this is your team" to create a sense of familiarity and confidence in the client. However, after the contract is signed, the client will soon find that the team they were promised is a mere shell of its former self. The talented resources that were presented during the courting stage are shipped off to work on another project or are assigned to another client, leaving the client with a less experienced and less capable team. 

This practice is not only unethical but can also be detrimental to the success of the project. The client may have chosen the vendor based on the talented resources presented during the courting stage, only to find that the actual team lacks the same level of expertise and experience. This can result in delays, cost overruns, and a lower quality implementation. 

To avoid falling prey to this tactic, clients should ask for guarantees in the contract that the team presented during the courting stage will be the team working on their project. They should also ask for specific details about the team's experience and qualifications and request that the vendor provides a plan for staffing the project with the same level of talent throughout the implementation process. Additionally, clients should require a formal interview for any new replacements that the implementer is bringing in and ultimately have the final say in whether the candidate meets the needs of the project.

Presenting a talented team during the courting stage and then swapping them out after the contract is signed is unfortunately a tried-and-true practice used by the large ERP system implementers. It is essential for clients to protect themselves by including guarantees in the contract and requesting details about the team's experience and qualifications. By doing so, they can ensure that they are getting the level of expertise they were promised and increase their chances of a successful implementation.

Overallocate, Overpromise, and Underdeliver

The practice of bait and switch in ERP system implementation is often driven by the implementer's desire to secure as many contracts as possible and generate revenue quickly. Implementers may misrepresent their capabilities during the pre-sales stage, promising more than they can deliver, or overcommitting resources to multiple clients simultaneously.

As a result, implementers find themselves in a situation where they have depleted their bench of talented resources and are forced to build a project roster based on individuals who may not have experience working together or with the specific ERP system being implemented. This can lead to a subpar implementation and cause delays and cost overruns.

In most cases, implementers prioritize securing new contracts over delivering quality implementations, which results in a focus on quantity over quality. Additionally, the pressure to generate revenue quickly may lead to shortcuts being taken, such as using less experienced team members or subcontractors who are not aligned with the client's goals and objectives.

Furthermore, some implementers may use the bait and switch tactic as a deliberate strategy to win contracts, knowing that once the contract is signed, the client may be less likely to terminate the relationship or renegotiate the terms.

While the temptation to engage in the bait and switch tactic may be strong for implementers, it ultimately undermines their reputation and damages their relationships with clients. Organizations that have been subject to this tactic may be less likely to work with the implementer again, leading to lost revenue and a damaged reputation in the industry.

To avoid falling victim to the bait and switch tactic, organizations should carefully evaluate the implementer's track record and reputation before entering into a contract. They should also request guarantees in the contract that the promised project roster will be delivered and require details about the experience and qualifications of the team members, including subcontractors. Finally, organizations should work with the implementer to develop a comprehensive project plan that outlines the roles and responsibilities of each team member and ensures that all team members are aligned with the client's goals and objectives.

The bait and switch tactic in ERP system implementation is often driven by implementers' desire to generate revenue quickly, but it ultimately undermines their reputation and damages their relationships with clients. Organizations can protect themselves by carefully evaluating the implementer's track record and reputation, requesting guarantees in the contract, and working with the implementer to develop a comprehensive project plan that offers you the customer protection from these shady patterns of behavior.