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Chapter 8 • Program and Project Management 231

are taking place and why some activities have not begun. SMEs will get frustrated with activities
related to testing, reporting, and data conversion. It will be difficult for them to understand fully how
the system is going to work until they can see their own data flow through it. The SMEs’ understand-
ing and trust of the project methodology will reduce anxiety and increase productivity.

PROJECT LEADERSHIP

In an ERP implementation, project leadership (Figure 8-4) is not for the “faint of heart.” It is consid-
ered high risk and high reward. That being said, “perhaps the single most decisive element of ERP
5
success or failure is the knowledge, skills, abilities, and experience of the project manager.” Trepper
added, “A successful ERP project manager is flexible, disciplined, a quick learner, a good decision
maker, has ERP and business experience, has political clout with a formal education, is well liked,
and finally has the ability to motivate his staff.” 6
The PMO must manage the risks involved in a project implementation to be successful. Below
are some examples of issues the PMO will likely need to monitor or address during an ERP imple-
mentation:

Owners

Project
Executive

Project
Steering
Committee Management
Office

Information Change
Cross Functional
Technology Management

Functional Team Functional Team Functional Team Training and Communication
Component 1 Component 2 Component 3 Documentation

Technical Development
Infrastructure and Interfaces Conversion Reporting

FIGURE 8-4 Sample Organization Project Management Office.

5 Trepper, C. (August 1, 1999). ERP Project Management is Key to a Successful Implementation. www.peoplesoft-planet.com/
Projectmanagement.html (accessed May 1, 2005).
6 Ibid.