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/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 was scrapped, and the vendor dismissed. In many more cases, the system went live but the customer had to live with poor performance never realizing the expected benefits of the new system. Lawsuits have occurred. Staff frustration is often a major result with people leaving or being much less productive than they could be. Ultimately, the project fails to deliver on the promised ROI.
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 pressure to select the low bidder for a variety of reasons from a variety of sources.
Estimating complex projects is a difficult process. All vendors must balance submitting 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. That action manifests itself in things like; numerous change orders, disputes over what is included in the scope of work, changes in timelines etc. Not being clear about what customer resources must be committed at what level are common.
Other issues get to the heart of what makes a project successful...
Points to Consider:
Finally, If you went through a less than successful implementation, all is not lost. Meta offers, post implementation review services that can pinpoint areas that will result in great improvements. We focus on a process called “People Driven ROI” to drive 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 or for private sector companies providing technology services to the public sector.