There is an old but still relevant saying: “The bitterness of poor quality lives on longer than the sweetness of low price.” That quote applies to a lot of things, including enterprise-wide software and business process projects.
The history of those projects (ERP/HCM/Payroll/EPM) is littered with examples of the lowest bid running into major problems. In some cases, the project is scrapped, and the vendor dismissed. In many more cases, the system goes live but the customer is forced to live with poor performance, never realizing the touted benefits of the new system. Ultimately, the project fails to deliver on the promised ROI, and the frustrated staff either lose productivity or leave. These delivery failures don’t just hurt business relationships and waste capital investments — in some cases, they also lead to lawsuits.
Technology project bids are normally based on best value, not lowest price. But public sector managers are wonderful stewards of the taxpayer’s money and try to balance value and price. There also may be pressured to select the low bidder for a variety of reasons from a variety of sources.
Estimating complex projects is a difficult process. Vendors must submit proposals that balance resources, likely success, and risk, all while earning a profit. Some, however, attempt to cut corners and win a bid even though there is a high risk of problems. Down the line, that decision often results in things like numerous change orders, disputes over the scope of work, and changes in timelines. If vendors aren’t clear about how they’re allocating the customer’s resources, they run the risk of derailing the entire project.
Knowing some vendors cut corners, how can you figure out if an engagement will create issues down the line? Here are some questions to help you evaluate a vendor’s proposal.
Finally, if you went through a less-than-successful implementation, all is not lost. Metaformers offers post-implementation review services that can pinpoint areas with the highest potential for improvement. We focus on a process called “People-Driven ROI” to create value. These processes can turn a mediocre project into one that provides the success and value you originally sought.
Bob Sabo has over 40 years of experience working for government and private sector companies providing technology services to the public sector.