Avoiding EPM implementation failure
Enterprise Performance Management (EPM) projects can help organizations improve planning and decision-making, but they can also run into trouble when treated like large-scale Enterprise Resource Planning (ERP) transformations. In its September article, Open Access Government, featuring Iain Blanchard of Absolute EPM, explains three rules CFOs should consider when implementing EPM. The article emphasizes that EPM and ERP serve different purposes: ERP manages day-to-day operations and acts as the system of record, while EPM focuses on planning, forecasting and helping organizations navigate future decisions.
The three rules are:
- Choose the right implementation partner. EPM requires specialized expertise, so organizations should look beyond a large consulting firm’s brand and evaluate the actual team that will deliver the project. If necessary, EPM can be handled by a specialist rather than bundled with an ERP implementation.
- Provide strong client-side leadership. Organizations need empowered decision-makers who can participate in business-process design, testing and adoption. The implementation partner can provide recommendations, but the client still needs to actively drive the project.
- Think evolution, not revolution. Rather than attempting to implement everything at once, EPM can be introduced in stages. The article suggests starting with financial planning, followed by areas such as workforce and project planning, building a business case for each phase.
The overall message is that EPM doesn’t need to become another massive transformation project. A focused approach, specialized expertise and phased implementation can help organizations introduce new capabilities while delivering value along the way.
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