The Top 8 Reasons Why SAP Projects

Fail
By: Matt Angerer

The first time I touched SAP was in 2002 at Unilever HPC. I believe it was v4.6c. It was my
first job out of college as an EDI Systems Analyst and I didnt know the difference between
VA01 and VF01. If youre an SAP professional, Ill leave it at that. However, after 6 months
working in a very supportive eBusiness Connectivity team, I could navigate my way not only
through the order-to-cash cycle, but picked up a few tricks of the trade monitoring IDOCs
and testing both inbound and outbound transactions from a variety of systems and
partners. Looking back, we had an IT Manager who was a real stickler for details. She would
closely analyze my deliverables and provide constructive advice of how I could improve
next time around. MaryAnn was a firm believer in continuous improvement. Although I
didnt fully grasp the impact her leadership style would have on me at 23 years old, many
years later as I faced more difficult challenges on SAP implementation projects, her impact
was clear. She embodied the key characteristics of a strong leader by how she interacted
with her employees and managed her projects.
Our projects ranged from on-boarding Wal-Mart on AS2 (EDI over the Internet) to
redefining how the eBusiness Team handled Advanced Ship Notifications (ASNs) errors.
Her approach hinged upon four key factors: timelines, affordability, objectives, and
soundness of targets. She knew the importance of having an overall strategic plan that
guided the eBusiness team, but also understood that inaccurate time estimates could spell
disaster. By balancing these two aspects masterfully, she was able to dictate the direction
of the SAP eBusiness Team.

Fast forward 15 years and Ive had the privilege of assisting in over 10 SAP implementations
(ECC, CRM, S/4 HANA) across 7 different industry sectors. Each of these projects came with
certain successes and failures. However, throughout these SAP projects Ive carefully noted
the main reasons for their failures and successes. In this article, I want to provide a
breakdown of reasons why Ive seen SAP projects fail. Of course there are a myriad of other
factors that can influence a project, but in my opinion these 8 reasons are why certain SAP
projects fail.
1) Lack of a strategic plan. In their eagerness to launch an SAP project, many people dive
into the project without developing a strategic plan. There are many hallmarks of poor
planning, but here are five of the most common planning errors:
Jumping into a project without considering results of similar, past projects
Launching a project without involving key stakeholders
Failure to consider costs or set budgetary parameters
Minimizing the complexity of developing software
Moving forward without setting up a schedule to assess progress on deliverables
Its easy to get caught up in the whirlwind and excitement of a new project. Youre eager to
move ahead and prove yourself, but you can avoid these mistakes by involving key
stakeholders in your strategic planning meetings and by establishing performance
measures to help gauge project progress. Finally, you should always analyze the results of
past projects as you map out your strategic plan.

2) Inaccurate estimates of time required for project completion. A carefully formulated

estimate of the timeframe required for a project plays a critical role in its overall success.
Poor timeframe estimates can lead to lost revenue and low client-satisfaction. Below is a
look at some factors that contribute to poorly configured estimates:
Creating estimates without involving the frontline staff who will be doing the work
Basing estimates on guesses or wishful thinking
Offering an overly optimistic estimate in an effort to secure a clients business
Ignoring completion timeframes for past projects
Failure to provide updates on time estimates as deadlines approach
Providing accurate estimates is best achieved by using proven tools and techniques such as
three-point estimating. Additionally, project teams should review completion timeframes
for similar projects completed in the past, providing regular updates for the client on
project timeframes.

3) Poorly defined project scope. One of the key responsibilities of the SAP
projects manager is to outline the scope of a proposed project. Scope refers to the amount
of work required to complete a projects objectives and deliverables. Some of the key
errors related to poor scope management of a project include the following:

A project scope that lacks clarity and definition

Inability to define accurate budgetary parameters due to a poorly defined scope
A project team that lacks direction due to poorly defined objectives
Making scope changes without the input of key stakeholders
Project managers can improve the way that they define and manage a projects scope by
making sure that a project is carried out in pre-established segments with the involvement
of stakeholders. Any changes to a projects scope should be clearly conveyed to all parties
involved.

4) Poor risk management. Avoiding discussion of project risks is like viewing a project
through rose-colored glasses and is a recipe for project failure. Risks should be identified,
assessed, and properly managed through acceptance, avoidance, or mitigation.
Unfortunately, many projects are initiated with the following risk management mistakes:

Launching a project without considering any risks or their potential impacts

Considering only the positive ways that a risk can impact a project
Discussing risk in a general, all-encompassing fashion
Failure to regularly reanalyze risks as a project unfolds
Proper risk management can help eliminate barriers to success for an SAP project.
Strategies to help manage risk include categorizing identified risks, involving stakeholders
in risk management discussions, and periodically updating risk registers.

5) Insufficient testing. My favorite. Successful SAP implementation rarely occurs without

a robust testing strategy. While it may seem intuitive to test a product prior to
implementation, there are too many cases in which projects are labeled Completed
without ensuring that design requirements are met. Below are some common examples of
insufficient SAP testing:

Testing resources are inadequate

The individuals performing the testing lack expertise
Poorly maintained testing documentation
Testing is biased, or conducted by people aiming to prove the software functions
properly as opposed to identifying flaws
Many of these issues can be eliminated by creating a comprehensive test plan that is
reviewed with stakeholders in advance of testing. Additionally, the testing process should
be overseen by an experienced test lead who emphasizes the importance of
documentation.

6) Human resource challenges. A smooth SAP implementation is best achieved with the
support of a well-organized, highly motivated team of professionals. SAP projects should
be managed by an experienced leader who can keep a project on track and quickly address
underperformance. Below are some examples of human resource issues that can impact a
project:

Ignoring conflict between team members

 Spreading resources too thin, or across multiple projects
Failure to consider training time when preparing time and cost estimates
Waiting to address underperformers until it is too late
Addressing human resource challenges requires project managers to quickly diagnose and
address key causes of subpar performance and conflict between team members. Each
project should operate according to a schedule that is designed in advance of
implementation, and team members should be trained to properly cope with conflict.

7) Failure to engage stakeholders. Communicating with stakeholders is often vital to the

success of a project. In addition to serving as key project advisors, stakeholders often lend
financial support and expertise that can contribute to project success. Make sure to avoid
the following stakeholder pitfalls:

Seeking stakeholder involvement only after a problem develops

Ignoring stakeholder goals and desires
Failure to maintain documentation for meetings and risk management discussions
Transparency is the key to stakeholder engagement. Through open communication and
meeting inclusion, project managers can keep stakeholders engaged in SAP projects.

8) Inadequate Project Management. Ideally, project management combines skills,

expertise, resources, and strategic planning to meet or exceed project requirements.
Creating a new software product is an example of a project that requires quality project
management. Unfortunately, there is a host of project management errors that can impact
a projects success. A few of these errors are as follows:

Devoting too much energy to processes as opposed to a projects outcome

Insufficient leadership and training
Failure to address problems when they arise
Short-sightedness, or the inability to focus on long-term successes