Lack of senior management support

Many researchers claim that senior or top management support is essential to successfully conclude the ERP implementation project. Alsher (2017) points out that consistent and demonstrated commitment and ownership are critical at managerial levels as they support the adoption of the new system, eliminate resistance, and contribute to change management principles. If the project does not enjoy the support of the top management, then the motivation of employees weakens; resource allocation to the project is not prioritized, and the project faces barriers at all operational levels.

In the initial planning phase of the project, the absence of senior management support might cause budget-related issues. If the senior management does not consider the project as a priority among others, then it is likely that it will be launched with a limited budget that does not allow to cover the original scope of the project. For instance, certain developments would not be carried out by professional experts but by trainees; or the project team has to cancel certain developments; or not enough licenses per user would be purchased.

Lack of senior management support might manifest in the production phase as well, if the newly established policies, processes are not supported by key performance indicators (KPI). Similarly, if the adoption is not tied to periodical bonuses or targets, then project contributors would not be incentivized to hand over quality inputs to the project team.

Last but not least, the project might suffer plenty of damages due to the absence of senior management support throughout all phases of the project: As the expansion of the project or rotation of positions require additional or replacement resources, top management might not fulfill these obligations resulting in delays or cost overruns (ERP Software Blog, 2017). Furthermore, depending on the organizational structure of the enterprise, the sufficient authority level of the project manager needs to be supported by higher-level managers. In weak-matrix or functional structures, the project manager has limited authority over project representatives. From a change management perspective, senior management might not communicate clearly the overall targets, importance, and the benefits gained from the ERP implementation project, resulting in obstacles for the project team (Toolbox, 2015).