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236 Chapter 8 • Program and Project Management

TABLE 8-2 Executive Sponsor Speaks to the Organization
1. Impact of the product on the business All departments were represented
Cost savings Vendors considered
Cost avoidance Preparation of the RFP
Efficiencies to be gained Site visitations and demos
Competitive advantage 3. Long-Term Impact of a Successful Project
2. Description of Selection Process Sustainability
Who was on the selection committee Growth

communications that will be needed with the new system. Change management helps employees
feel secure about the changes that will come as a result of the implementation. It is very important
to have the chief executive of the organization speak at the project kickoff meeting to explain in
his or her own words why this project is so important, what the project means to the organization,
and how their business goals will be met because of this implementation. Items that might be
covered by the executive are outlined in Table 8-2. 12

Managing Scope Creep
A well-thought-out process to manage changes to scope is critical to a project’s success. The team can
do everything in its power to understand the functionality of an ERP system; however, seeing it work
in the company’s environment is vital. Project plans and deadlines are made early on in the project
planning without fully realizing the detail of how the ERP functions will meet the company goals and
needs. For example, the functional teams begin evaluating the ERP functionality in the test environ-
ment after the project scope is approved. If a key element of the functionality does not work well dur-
ing this process, there may be a need to make changes to the original scope. These new changes must
then be built into the implementation. “Change Control” is managing these changes through a change
process and governance. There must be a clear understanding around the decision-making process.
When changes are made in the scope of the project, the options, costs, and time frame must be docu-
mented for the project to evaluate and decide a direction. Changes in project scope or new functional-
ity are often addressed through the research and development of a white paper. A “white paper”
consists of a description of the issue or new functionality, including the options available with advan-
tages and disadvantages. A white paper should also list the implications to the project, including a
time frame and budget considerations and a recommendation. If change control is not enforced,
“scope creep” can quickly get out of control, leading to missed deadlines and project budget overruns.

IMPLICATIONS FOR MANAGEMENT
The success or failure of a project often rests with the skills and abilities of the PMO, project staff
continuity, and a well-defined communications process. Well-managed projects are those where the
scope is well understood and the project team is motivated to see the project through to Go-live. On
the other hand, many projects fail due to a lack of open and honest communications and staff
continuity throughout the project.

12 Strub. Top 10 Reasons for Having a Project Kickoff.