Why Did Your ERP Project Fail? Misunderstood Expectations

ERP (Enterprise Resource Planning) projects are notorious for their complexity, high costs, and potential pitfalls. While there are many reasons why ERP implementations can fail, one of the most common yet overlooked issues is misunderstood expectations. This isn’t about having unrealistic goals—it’s about thinking you’re on the same page when you’re actually not. Both the customer and provider might believe they’re in agreement, only to discover later that they were speaking entirely different languages. Let’s explore why this happens and how to prevent it.

What Are Misunderstood Expectations?

Misunderstood expectations occur when both parties think they’re aligned, but in reality, they’re not. This can lead to significant disconnects between what is promised and what is delivered. Here’s how it usually plays out:

• Ambiguous Definitions: The customer and provider use the same terms but mean completely different things. For instance, "customizable" might mean adding a few fields to one person but creating entirely new workflows to another.

• Assumptions Without Verification: Both sides assume the other understands what’s required without taking the time to clarify. This often results in misinterpretations of project scope, deliverables, or timelines.

• Different Priorities: The customer might prioritize user-friendly features, while the provider focuses on technical performance. Both think they are addressing the project’s main goals, but their actions diverge significantly.

• Misleading Agreements: In meetings, everyone nods and smiles, believing they’ve reached a consensus. But without detailed documentation and follow-up, those agreements can quickly fall apart.

Why Do Misunderstood Expectations Happen?

Misunderstood expectations stem from several root causes:

• Lack of Precise Communication: Both parties may communicate frequently, but if those communications are vague or use industry jargon without clarification, misunderstandings are inevitable.

• Failure to Involve the Right Stakeholders: Sometimes, critical voices aren’t at the table. Key users, IT professionals, or operational managers may be left out, leading to gaps in understanding.

• Rushed Discovery Phases: Skipping over the discovery phase to save time or money is a common mistake. Without thorough exploration of needs, both sides may have different interpretations of what the project entails.

• Assumptions Based on Past Experiences: Often, both the provider and the client bring past experiences to the table. What worked or didn’t work previously can color expectations in the current project, leading to unfounded assumptions.

How to Avoid Misunderstood Expectations

Preventing misunderstood expectations isn’t just about good intentions; it requires a proactive approach to communication and project management. Here’s how to do it:

1. Define Everything in Detail: Avoid broad statements like “improve efficiency” or “enhance reporting.” Instead, clearly outline what each goal looks like in practice. Use examples, mock-ups, and specific metrics to set clear expectations.

2. Document and Confirm: Every agreement or assumption should be documented in detail and shared with all stakeholders. Use project charters, scope documents, and requirement specifications to ensure there’s a written record of what’s agreed upon.

3. Engage All Key Stakeholders: Include end-users, IT staff, project managers, and other relevant parties in the discussions from the start. Ensure everyone’s voice is heard, and address concerns early on to prevent future misunderstandings.

4. Use Checkpoints and Feedback Loops: Regularly review progress and gather feedback to confirm that the project is on track. Create checkpoints where both the customer and provider can revisit the scope, timelines, and deliverables to ensure alignment.

5. Facilitate Open Communication: Foster an environment where asking questions is encouraged. Both sides should feel comfortable voicing doubts or seeking clarifications to avoid hidden misunderstandings.

Final Thoughts

Misunderstood expectations are silent project killers. They lurk beneath the surface, only revealing themselves when it’s too late to correct course. By prioritizing clear communication, documenting every agreement, and involving the right stakeholders, organizations can bridge the gap between what’s said and what’s meant, setting the stage for ERP success.

Until Next Time…