ERP implementation: who are you going to call?

With the reboot of the 1984 classic Ghostbusters movie being released this week, I have been reflecting about the tagline: “Who are you going to call?” Seems relevant to the consulting business where we compete for business and frequently ask ourselves how a customer intends to decide who to call (meaning which consulting firm to select). An Enterprise Resources Planning (ERP) project can a transform an organization and is not to be taken lightly, so an organization’s selection of an implementation partner is critical.

My experience is that customers take one of three basic approaches to decide “who to call”:

•          Prepare and issue a formal request for proposal (RFP)
•          Informally interview and obtain proposals
•          Strategically work with an existing consulting partner to formulate the project

Many customers create an RFP to facilitate a well-defined decision process. The RFP contains the scope, requirements, selection criteria and response formats necessary to yield comparable proposals from 3 or more consulting organizations. These RFP may include thousands of requirements and many pages detailing the response format. The consultants respond with proposed implementation project details that the customer’s decision making team can compare to decide. Of course, there are steps for the customer and prospective consultants to interact with demonstrations and other meetings so the teams may clarify the RFP, answer questions, and get to know each other.

An informal or less structured process does not necessarily mean less rigor than the RFP. Customers may conduct numerous meetings and request software demonstrations to ascertain the fit the company’s needs and culture. A less formal process may take more twists and turns as the customer team learns from the consultants and pursues discussions and avenues to inquire. Ultimately, the customer makes a decision based on data, opinions, and steps some of which may not have been initially planned.

The strategic approach does not necessarily mean the consultant is not evaluated. For customers with an existing relationship or basis to focus on a primary consultant, the strategic evaluation focuses on the project definition and how the consultant adds to the cost/benefit/risk parameters of the project. Clearly the consultant must be qualified to deliver the project and the evaluation must focus on how the project can be delivered within risk and timing that achieves success. A strategic evaluation may bring the consultant further into the benefit and risk aspects of the project and not just the scope, approach, and cost.

So, how do consultants view these various different approaches? Unless the consultant wrote the RFP or has an inside track on the informal process, each has its own positives and negatives. Some viewpoints to consider for each approach:

1.           RFP – the consultant does not want to be “column fodder”, so this concern should be addressed
2.           Informal – spell out and communicate some reasonable steps and timing to conclude the decision so the consultant has an overall view of the process
3.           Strategic – address differences in expectations and approach if the consultant’s relationship and past projects do not include technology and applications consulting

So is any one approach best? Maybe it depends on the company and situation. I have had experience with all three and both won and lost, so which process seems to be less of the prescription for success than the quality of the dialog between the parties and the agreements reached for the project to setup reasonable expectations on both sides for success.

But, setting expectations for success is another movie and blog post, so for now let’s suffice with the question: who are you going to call? And by the way, I will look forward to feedback on which version of the Ghostbusters movie is preferred: the original or the re-boot!

About Kirk:

During his 30 year consulting career he has led many ERP selections and implementations, primarily in the manufacturing, distribution and high technology industries. During a recent two year respite from consulting, he was an executive leading a global supply chain organization using Microsoft Dynamics. As the global supply chain director, he appreciated the opportunity to “eat his own dog food” by running the business processes and technology he helped the company select and implement.

Kirk’s published works include this monthly blog, magazine articles, conference presentations, and the book Lean Distribution, which focuses on the relationship between ERP and lean operations in the supply chain.