Why project management is essential for the SAP S/4HANA transformation

There are various reasons why SAP S/4HANA projects fail. Sometimes it is due to limited IT resources, which cannot handle the project in addition to day-to-day business. Sometimes the company has too little experience with complex transformations that affect not only technology but also the business. Sometimes there is a lack of support from management, which does not give the SAP S/4HANA project the necessary importance and priority. Beyond the specific reasons for failure, however, most SAP S/4HANA transformations show that companies usually manage to get to terms with the technology itself, but without good project management, even the best system can become a burden for the company.

7 irrefutable truths about project management in the SAP S/4HANA transformation

Weak vs. strong project management

It is a reality in many companies that project management tends to be neglected. There is often a lack of awareness of the direct link between project management and project success. Weak project management not only costs companies time and money, but also demotivates those involved in the project. Strong project management, on the other hand, creates clarity, allows the project team to gain momentum and work toward a common goal, and ensures that each individual is motivated to contribute.

The following situations indicate potential for optimization in project management:

• The goals and deadlines that have been set are unrealistic, making it impossible for the project team to achieve or meet them.

• There is no clear definition of the desired project goals and results.

• An inadequately designed project plan does not do justice to the complexity and tasks involved.

• The scope of the project is constantly changing and is unbalanced.

• The team is not geared toward the skills required to solve the project tasks, which creates a resource issue.

• Poor communication results in insufficiently or incorrectly informed team members.

• Responsibilities for tasks are not clearly assigned, and there are no clear roles and accountabilities.

SAP Activate: Methodology toolkit for project management

With SAP Activate, SAP provides a comprehensive methodology toolkit with numerous tools designed to support companies in project management. The standardized content is clearly structured and also includes agile elements. However, in order for companies to use SAP Activate correctly, they must be aware of one thing: SAP Activate is a modular system or framework and not a fully developed project plan. This means that SAP Activate can only be used effectively if the tools are adapted to the company and the project. Factors such as project size, stakeholders, geographical distribution within the project, and the organization’s agile maturity level must be taken into account.

IBsolution’s best practice approach is based on the SAP Activate methodology, but is tailored to the maturity level and experience of the company. Defining clear guidelines and establishing clear communication and decision-making channels ensures efficient project governance. This also includes selecting the right tools based on the scope of the project and the organization.

A stable foundation for project success

Transformation projects fail not because of implementation, but because of a shaky foundation. Therefore, the project setup should form a stable basis for project success. The most important elements of the project setup include:

• Clear roles and responsibilities
• Project governance and committee structure
• Transparent communication (regular meetings, communication channels)
• Maturity level (technical, cultural) and resource reality (consideration of availability)
• Project culture and leadership behavior (active risk management, responsibility, commitment)
• Cooperation between the company and the implementation partner (creating a common understanding, clarifying mutual expectations)

Templates are useful for project setup, for example to record which committees exist and how the escalation paths work. Committee profiles provide information about the members of the committees and the topics that are discussed and decided there. A detailed description of the roles in the project also ensures transparency. A matrix can be used to determine the exact responsibilities of the company and the implementation partner.

These documents are compiled into a project manual. This provides an important reference point for all project participants and serves as a source of information in case of uncertainty. The longer the project lasts, the more effort should be put into creating organizational guidelines, as they have a lasting impact on the further course of the project.

Conclusion: Setup, control, and attitude must be right

Project success is no coincidence, but rather the result of the interplay between structure and attitude. Discipline and responsibility are the real levers that make a project successful. As a strategic factor, project management has a direct influence on the costs incurred in the project. These will multiply if companies ignore certain organizational issues.

SAP Activate can help establish effective project management with its tools. However, the tools must be adapted to the specific situation, project, and organization. Projects are successful when the setup, control, and attitude are right. If companies take these factors sufficiently into account, they will be well prepared for their SAP S/4HANA transformation.