Your organization is preparing to decide which consulting firm to select for your ERP or [insert large systems name here] project. There are dozens of firms to choose from. The global systems integrators offer comprehensive solutions, and specialized boutiques offer reasonably priced results. Intuitively, you know you get what you pay for, but it's not evident what you're really paying for.
Competing firms all seem to be saying the same thing. The consultant’s messages are sugar-coated with tech speak and consulting buzzwords. In reality, the competing firms are all saying the same thing and using buzzwords to impress you.
Selecting a firm to assist with your multi-million dollar ERP implementation can be a challenge. Most organizations address selections by spending a disproportionate amount of time trying to qualify consulting firms with elaborate requests for proposals (RFPs). Most RFPs miss what is really—screening the people within the consulting firm you are hiring.
The actual project team assigned to your project has the most significant influence on achieving successful results.
However, technology consulting firms tend to downplay the project staffing aspect and present you with irrelevant marketing materials and hype about methodologies, tools, qualifications, solution centers, pre-packaged templates, vendor awards, and other technologies. These are decoys to prevent you from uncovering what they don't want you to see.
1. “We don't like to recommend the most cost effective solutions, because the more money you spend, the more we make.” Unless you're a Fortune 100 organization, you may be considered a one-trick pony to any large global systems integrator, and they want to get as much money out of you as possible.
2. “We have done many projects like yours, but the people in charge of this project have never managed one in your industry.” Many consulting firms dance an industry expert in front of you. However, you rarely see that expert again. The actual project team is from somewhere else and may not have the requisite industry experience.
3. “The list of companies referenced in our proposal isn't relevant to your project since most of the companies transcend time and were performed by people who are long gone.” Typically, the work is not even relevant to your project.
4. “We are really good at impressing you with consulting lingo, but don’t ask how that applies to your specific issues.” The only reason consultants use words you don't understand is to overcompensate for a lack of knowledge in your industry.
5. “Our implementation methodologies and tools are really the same as the rest.” Most of the ERP consultants’ methodologies and tools have been developed and refined by people who have moved back and forth between all of the consulting firms. The methodologies are virtually all the same.
6. “The more you squeeze us on fees and rates, the more likely you'll be hit with a change order later.” Most organizations feel as though they got a great deal on rates; however, they don’t realize that the consultant really just trimmed the scope or traded in less experienced resources.
7. “The software isn't really the solution. Getting the right people on the bus and process discipline is the real answer.” Many technology consulting firms try to over play how the ERP technology is the end-all. They lay out elaborate technical solutions that will never work in the real world. Any firm that focuses entirely on the software capabilities will lead you down the wrong path.
Before you begin to look at consulting firms for implementation, make sure you are ready. We suggest every organization prepare the following before engaging with an outside firm:
1. A clear set of documented business objectives and a business case for the ERP project that can be shared with the consulting firms before proposals are prepared. Clearly documented objectives let consulting firms know you have your act together. The consulting firms will be less likely to try to bamboozle you with unrealistic expectations.
2. A clear understanding of the consulting firms your competitors or peer companies have used and their experiences with similar projects. Do rely on the consulting firm’s references. They will always pick someone who will give the glowing remarks. You must do your own research before you talk to consultants and get references beforehand. This will keep the consultants honest.
3. Assignment of the right internal staff to the project and empowering the staff to become involved in the consulting selection process. The consulting firms will be forced to answer more specific industry questions from staff to qualify the consultants’ real industry experience.
4. A high-level timeline and rollout plan for implementing new systems that is palatable for your organization. This lets the consulting firms know you have thought about the project, and it forces the competing firms to give you an apples-to-apples comparison for implementation.
Taking time to develop a sound plan and vision for the ERP systems before engaging implementation consultants will ensure you, not the consultants, are driving the implementation bus.
Selecting your ERP consultant can be simple if you are properly prepared. Cultural fit, existing executive relationships, and industry experience with similar sized companies are important criteria for selecting a firm. Cultural fit is important since the consultant’s team will be problem solving with your staff daily. An existing relationship between your company and the consultant’s executive team helps resolve issues that may bog down the project team. Since most of the ERP solutions generically apply to companies of all shapes and sizes, you need a consultant with industry experience to configure a solution that's a best fit for your company.
