How to Avoid System Implementation Failure.

IT/IM implementations collectively cost organizations up to $6.2 trillion annually, an amount that increases anywhere from 10%-20% each year.  Yet many of these ventures fail to meet management expectations. 

Why is this? 

As a small business marketing manager, I have managed four CRM implementations and, having learned by experience, these are the main reasons they fail and how to avoid them:

Unclear management expectations.  It is important to involve management in the decision making process, be realistic about what the system can do, and to clearly communicate the benefits/limitations of the solution you are choosing.

Scope creep.  In the implementation process, management may find that the features of the system  are limited and may need additional services that were not previously budgeted.  This causes the project to drain resources more quickly and increases the chances of failure.  When determining the project schedule and allocation of resources, clearly communicate what the system will look like and what functionality it will have to avoid a creep in the scope. 

Costly add-ons. Software/system solution providers LOVE add-ons.  In many cases, the solution they’ve given you to test drive is not the base model, and to get the bells and whistles you’ve gotten used to, you will have to pay extra for them.  

Lack of technical support.  Third party systems are more cost effective but often notorious for poor technical support.  For over the phone service, you typically have to pay extra to receive a live person within a timely manner.  This causes frustration and further budget usage.  Prior to deciding on a solution, make sure to test the support during your trial period and ask ahead of time what type of support can be expected once you are a customer.

Lack of user adoption.  By not having a formal change management plan and training program, you are setting your employees (as well as the project) up for failure.  It is important to clearly communicate the benefits of the new system, train employees how to use it, and have an onsite, dedicated “go-to” person they can call on for help.

In your experience, is there more?  What advice can you offer that will help companies choose and implement their solutions wisely?