ERP Governance Is Non-Negotiable: Roles, Escalation, and Culture That Make or Break Projects

Most ERP projects don’t fail because of technology. They fail because no one is accountable. Without clear roles, escalation paths, and a culture of trust, projects collapse under bottlenecks, blind spots, and finger-pointing. From real experience in large-scale ERP/D365 transformations, here are the governance lessons you can’t afford to ignore.

1. The Real Cost of Weak Governance

When governance is weak, projects bleed time, money, and morale.

• Bottlenecks pile up
• Blind spots multiply
• Teams lose accountability

In one project, poor governance led to a full year delay — costing millions and crushing team morale.

2. Clear Ownership Is Essential

• Process Owners → must own their domains (finance, procurement, reporting).
• IT & Consultants → support but do not own decisions.

When IT/consultants take over, users lose control, decisions disconnect from business reality, and adoption collapses.

3. Decision-Making Done Right

Too often, executives focus on cost instead of value. The result: decisions that look good on paper but fail in practice.

• Bad example: ignoring user feedback to save money.
• Better approach: gather input from key players before decisions, balance cost with long-term deliverables.

4. Escalation Paths Prevent Chaos

Governance isn’t just roles — it’s also how issues move up the chain.

• Problems should be raised in daily/weekly status meetings with key players.
• If unresolved, the Project Manager escalates to the right owner, or directly to the Steering Committee.

Without escalation, issues linger and quietly derail timelines.

5. The Consultant Dependency Trap

Relying on consultants for testing, training, and data migration creates dependency.

• Knowledge stays with consultants, not the business.
• Processes remain inefficient.
• Adoption never takes root.

Consultants should support, not replace, business ownership of critical activities.

6. End Users Must Have a Voice

In one project, a module was de-scoped without consulting end users. The result: chaos in daily operations, confusion about workarounds, and lost trust in the project team.

ERP governance must include the voice of the people who will use the system daily. Otherwise, resistance and rework are inevitable.

7. Culture Makes Governance Work

Structures alone don’t guarantee success. The culture of governance matters:

• Trust and partnership → projects move forward.
• Rivalry and blame → projects stall.

When stakeholders see each other as partners, governance creates alignment. When they see rivals, governance becomes gridlock.

Conclusion:
ERP governance isn’t about adding bureaucracy. It’s about clarity, accountability, and trust. Define roles, set escalation paths, secure sign-offs, and foster partnership. Without it, you risk costly delays, failed adoption, and wasted investment.