Tales Of System Implementer Shenanigans: Part 3 - Ballooning Billable Hours

Ballooning Billable Hours

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

Implementing an ERP system can be a complex and costly process, which is why businesses often rely on third-party implementers to help them with the task. However, ERP system implementers can use shady and slippery tactics during the implementation process, particularly in time and material-based projects. This blog entry will examine these tactics and how they differ from those used in fixed-bid projects.

Before diving into the tactics used by ERP system implementers, it's essential to understand the difference between time and material and fixed-bid projects.

Time and material projects are billed based on the number of hours worked by the implementers and the materials used. In these projects, the customer pays for the implementer's time and expenses, regardless of how long the project takes or how much it costs. Implementers have little incentive to complete the project quickly since any delays will result in extensions and more revenue.

Fixed-bid projects, on the other hand, are billed based on a fixed price for the entire project. In these projects, the implementer has a set amount of time to complete the project, and any additional time or expenses come out of their profits.

Clocking in Chaos: Mail It In Late and Overbudget

ERP system implementers can use shady and slippery tactics during time and material projects that can lead to delays, cost overruns, and other issues. Here are a few examples:

  • Padding Hours: Implementers may pad their hours to increase their billable time. This can involve taking longer than necessary to complete a task or claiming time spent on non-project related activities.
  • Scope Creep: Implementers may expand the scope of the project without notifying the customer, resulting in additional billable hours.
  • Slow Progress: Implementers may intentionally slow down progress to extend the project's duration and billable hours.
  • Limited Transparency: Implementers may limit the customer's access to project information, making it difficult for them to understand the project's progress and status.

The motivation for these tactics is clear - the longer the project takes, the more billable hours the implementer can charge, leading to higher revenue.

Cheap, Fast, and Dead on Arrival: Fake It To Make It

In contrast to time and material projects, implementers in fixed-bid projects find themselves resorting to a different style of tactics. Since they are not paid based on the number of hours worked, they are motivated to complete the project as quickly as possible to maximize their profits, and at a minimum meet their contractual obligations.

Some of the tactics used in fixed-bid projects can include:

  • Ignoring Stakeholders: Implementers will focus on completing the project quickly, leading to them ignoring critical stakeholders and their needs.
  • Poor Quality: Implementers will cut corners or rush through tasks to complete the project on time, resulting in poor quality work.
  • Rushing Deployment: Implementers will rush through the deployment process, leading to issues and errors down the line.
  • Limited Collaboration: Implementers will limit collaboration with the customer, leading to a lack of transparency and difficulty in addressing issues.

In fixed-bid projects, the implementer's primary goal is to complete the project within the set timeline and budget, even if it means sacrificing quality or stakeholder involvement.

ERP system implementers can use shady and slippery tactics during time and material projects, such as padding hours or intentionally slowing down progress, to increase billable hours and revenue. In contrast, implementers in fixed-bid projects may focus on completing the project quickly, even if it means sacrificing quality or stakeholder involvement. As a customer, it's essential to be aware of these tactics and to work with implementers who prioritize transparency, collaboration, and quality.

Steering Clear of Hidden Agendas: Steady the Ship with an Impartial Project Manager

One of the critical components of a successful ERP implementation is having an unbiased project manager who is not affiliated with the implementer. This individual is tasked with delivering the project in a manner that is not beholden to any hidden agendas of the implementer and can speak objectively to key decision-makers and stakeholders while holding all parties accountable.

There are several reasons why having an unbiased project manager is essential:

  • Clear Communication: An unbiased project manager can communicate more transparently with stakeholders, enabling them to make informed decisions. The project manager can provide objective feedback to the stakeholders about the project's progress and potential issues.
  • Conflict Resolution: The project manager can help resolve conflicts that arise during the implementation process. They can serve as an impartial mediator between the implementer and the customer and help find a mutually beneficial solution.
  • Accountability: The project manager is responsible for holding all parties accountable for their actions during the implementation process. This includes ensuring that the implementer delivers the project on time, within budget, and to the expected quality standards.
  • Quality Assurance: An unbiased project manager can ensure that the implementation process meets the expected quality standards. They can monitor the implementation process, soliciting feedback from a trusted impartial technical resource and ensure that the implementer follows best practices and industry standards.
  • Risk Management: The project manager can identify and manage risks associated with the implementation process. They can develop risk mitigation strategies and ensure that the implementer takes appropriate actions to address potential risks.

Having an unbiased project manager is critical to the success of an ERP implementation project. This individual can provide clear communication, conflict resolution, accountability, quality assurance, and risk management. They can ensure that the implementation process meets the expected quality standards and is delivered on time and within budget, while minimizing potential risks. It is important to ensure that the project manager is not affiliated with the implementer and is tasked with delivering the project in a manner that is not beholden to any hidden agendas.

Independent Consultants: The Secret Sauce to a Successful ERP Implementation

In addition to an unbiased project manager, independent consultants in heavy usage functional areas can play a critical role in keeping ERP system implementers in check. These independent consultants can bring specialized expertise to the implementation process and ensure that all voices are heard in determining the path forward in digital transformation.

There are several reasons why independent consultants are important:

  • Specialized Expertise: Independent consultants bring specialized expertise to the implementation process. They can provide guidance on best practices, industry standards, and regulatory requirements in their respective functional areas. This expertise can help ensure that the ERP system is implemented correctly, and all functional requirements are met.
  • Objectivity: Independent consultants are not affiliated with the implementer and are therefore unbiased in their assessments. They can provide an objective perspective on the implementation process and identify any self-serving agendas introduced by the implementer.
  • Advocacy: Independent consultants can advocate for the customer's interests during the implementation process. They can represent the customer's functional requirements and ensure that these requirements are met by the implementer.
  • Validation: Independent consultants can validate the work done by the implementer during the implementation process. They can ensure that the implementer follows industry standards and best practices, and that the system meets the customer's functional requirements.
  • Risk Management: Independent consultants can identify potential risks associated with the implementation process and develop risk mitigation strategies. They can help ensure that the implementer takes appropriate actions to address potential risks.

Independent consultants in heavy usage functional areas can play a critical role in keeping ERP system implementers in check. They bring specialized expertise, objectivity, advocacy, validation, and risk management to the implementation process. They can help ensure that the system is implemented correctly and that all functional requirements are met while minimizing potential risks. It is important to engage independent consultants early in the implementation process to maximize their impact on the project's success.

Avoiding the Dark Side: Staying on Track and Minimize Subjectivity

ERP implementations can be complex and challenging projects that require a high level of expertise and attention to detail. It is critical to approach these projects with a clear understanding of the risks and pitfalls that can arise, and to take proactive steps to mitigate them. This includes engaging an unbiased project manager and independent consultants in heavy usage functional areas to ensure that all stakeholders' voices are heard, and self-serving agendas are not introduced. By taking these steps, organizations can increase the likelihood of a successful ERP implementation that meets their functional requirements and supports their business objectives, while minimizing potential risks. With careful planning, attention to detail, and a collaborative approach, organizations can successfully navigate the slippery slope of ERP implementations and achieve their digital transformation goals, while at the same time not succumbing themselves to be beholden to vendor lock-in or the profit ambitions that are unfortunately all too prevalent in the world of ERP consulting and implementations.

Comments

Post a Comment

Popular posts from this blog

Exploring C# Optimization Techniques from Entry-Level to Seasoned Veteran

Image
As with any endeavor there are always multiple ways to achieve the primary objective, this is especially the case with software development as the element of individual creativity plays a central part in the solution. Given the varying levels of experience that make up a project roster it is crucial that all players accept respectful critique of their approach and have an open mind as to the different ways to solve the stated problem. It is important to analyze the different solutions and look at the pros and cons of each option objectively to ensure all potential scenarios are covered that results in a robust and stable solution. Sample Problem Let us now setup a sample project to analyze how a developer might approach such given their differing levels of experience and creativity. Project Detail: The state of California is opposing a one-time carbon t...
Read more

Implementing Enhanced Policing With Big Data and Predictive Analytics

Image
Big Data and Predictive Analytics has been the buzz word in Law Enforcement for some time now. The primary focus is to scrutinize huge amount of law and order data using predictive machine learning algorithms which enables scientists/ researchers create an analytic tool preconceive crime before its commission. This approach has a variety of possible benefits since it can decrease higher crime rates and enhance public safety, as well as lessens the expenditure in police resources. Digital Transformation In Law Enforcement Technology has become increasingly important as police officers have been called upon to do more with less—to be more efficient and effective in an era of shrinking budgets and increasing responsibilities. Even though technology is still new to some agencies, others have been using it for many years. Innovative and forward thinking governments throughout the country are using advanced analytics tools like predictive policing, social media ...
Read more

Is Cloud Computing a Digital Transformation Enabler or Obstacle?

Image
Cloud computing was supposed to make our lives easier. With the ability to access applications and data from anywhere, on any device, it should have simplified things by making systems more flexible and efficient. But according to a new report by BCS, The Chartered Institute for IT, this isn't always the case: 80% of respondents say that using different cloud applications have added complexity rather than simplifying their IT environment. Cloud computing is everywhere and there's now an expectation that moving to the cloud should be straightforward. Cloud evangelist claims it's easy to develop applications in the cloud, but simple isn't always as simple in practice as it sounds on paper. Keeping It Stupidly Simple - Not So Fast So, what's not to like? In a nutshell: It's not always quite as simple as that. The infrastructure-as-a-service (IaaS) model is the most widely adopted cloud model today. In Ia...
Read more