Why ERP Projects Fail – It’s the People, Not the Product

Despite millions in investment and years of planning, ERP projects still fail. Not because the software doesn’t work—but because of misaligned expectations, lack of buy-in, and fractured leadership. In short? The issue is rarely the platform—it’s the people.

Key Points:

• Poor sponsorship & misaligned vision: In one implementation, leadership couldn't agree whether the system's primary purpose was compliance, reporting, or operational improvement. The project stalled for six months while teams debated strategy instead of building alignment.

• Overlooked change management: I've seen organizations that only begin training a week before go-live. Unsurprisingly, adoption was low, and help desk tickets spiked. Conversely, in a successful rollout for a national retail client, change agents were embedded from the beginning—cutting post-launch issues in half.

• Team fatigue & lack of clarity: One ERP transformation stretched to 30 months with unclear prioritization and competing executive goals. Morale tanked, talent turnover surged, and stakeholder confidence dropped.

• Underestimated integration complexity: At a global telecom firm, the tech stack worked—but integrations between payroll, procurement, and finance lagged behind. Despite completing 90% of the core build, the project couldn’t go live until manual workarounds were reengineered.

Conclusion: ERP projects don’t fail because SAP or Salesforce broke. They fail when communication breaks. The good news? People are also the key to success—with the right engagement, leadership, and transparency. Project health is measured less by tech milestones and more by shared ownership.

CTA: Have you experienced a project that failed due to people dynamics—not the platform? I’d love to hear your story.