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Introducing an ERP system is one of the most significant milestones in a company’s lifecycle. While it can lead to major successes and improvements in quality, careful preparation and planning are essential for effective operation. The implementation of SAP and other ERP systems is not merely a technological project but also a strategic challenge.
What happens when a large enterprise integrates its entire business processes into a new system? How does the work unfold when it affects every department, involves huge budgets, and is critical to the company’s future? In the latest episode of the PMO Club podcast, Dr. Balázs Holenda—who has been leading Deloitte’s SAP advisory division and project management competency center for five years—addresses these pressing questions.
As companies grow, there always comes a point when a consolidated, unified system becomes necessary to operate processes efficiently. At this point, it is crucial for management to choose the right system.
An ERP system eventually integrates into every part of a company. From logistics to financial accounting to HR, no area remains untouched during the process.
A recurring question is whether a project manager needs to be a subject matter expert or if project management skills alone are sufficient. The answer is not black and white. While a good project manager doesn’t necessarily need deep technical expertise, understanding the logic of the product or service is essential for leading a project successfully.
A common professional path is transitioning from an expert role to project management, often because of the search for new challenges. This shift can be ideal, as leaders with relevant experience are often seen as more credible.
What is indispensable, however, is strong communication skills. Project managers must maintain connections with stakeholders and team members alike.
One of the biggest challenges within companies is maintaining the work capacity and motivation of project management teams. Team turnover can endanger project quality and delivery. For this reason, the role of the project manager is crucial.
The phenomenon known as a “death march” describes projects doomed from the start due to unrealistic deadlines and scale. Project managers, however, must carry on, leading to 12+ hour workdays, dissatisfaction, and often deadline extensions.
It is essential for leadership to create realistic working conditions. Excessive overtime and high stress often lead to burnout or resignations within project teams. After intense work periods, allowing team members to recharge is also critical. This profession requires flexibility and complex thinking.
Regardless of company size, project management faces three primary challenges (and potential pitfalls):
Another emerging consideration is how IT-driven a project should be. Ideally, leadership should first define business needs, which are then translated into IT requirements. In recent years, strong IT involvement sometimes overshadowed business goals. However, the ultimate purpose of these projects is to support the company’s daily operations and business interests. The focus must therefore be on defining business requirements at the outset.
Agile methodologies have infiltrated almost all areas in recent years, including SAP projects, but they have not achieved widespread success due to their complexity. In these cases, the traditional waterfall method tends to be more effective. In many cases, hybrid approaches—incorporating elements of agile methodology—are also used.
General rule: Agile approaches are worth considering when there is already a long-term, trust-based partnership with a client. Agile methodologies require a paradigm shift. Goals and deadlines are less defined at the project’s start, and processes can evolve over time, making mutual trust critical.
The need for an ERP system can emerge at different times, resulting in three main implementation approaches:
One of the greatest leadership challenges is that ¾ of projects exceed their original plans, and meeting initial deadlines is rare. When delays are anticipated, project managers instinctively bring in more resources to stay on track. However, as Frederick Brooks famously stated in project management: “Adding more people late to a project only worsens the situation.” New team members require knowledge transfer, demanding even more time and creating temporary chaos.
This phenomenon can only be avoided during the project’s planning phase. Detailed planning, realistic schedules, and well-defined project goals are essential. Saving a failing project at the last minute is extremely difficult—even for the most experienced project managers.
Overall, ERP systems significantly support leadership and are expected to become indispensable in the future. The next decade will be the era of transitions, offering companies the opportunity to redefine their operations. Innovations like SAP S/4HANA and artificial intelligence are driving fundamental changes, which will significantly reshape project management roles and responsibilities.
You can listen to the episode in Hungarian:
Spotify: link
Apple Podcast: link
YouTube: link
