Executive Leadership Is the Key to Project Success

Why Executive Leadership Drives ERP Project Success

Conventional corporate thinking has long placed the responsibility for project success or failure squarely on the project manager's shoulders. However, as the business world has evolved, research suggests that successful projects rely heavily on top-down leadership. Strong executive sponsorship and leadership are now recognized as indispensable for achieving project goals. Here’s what senior management needs to know about driving ERP and other complex projects to success.

A business takes on a project to create and/or better its products, services, and systems. In addition to meeting metrics such as quality and budget, successful projects help increase profits.  Company leaders who sponsor projects are the propulsive force behind that success, accounting for 35% to 44% of project success. The converse rings even truer: A lack of project sponsorship by the leaders of a company may account for nearly 60% of a project's failure.

Executive Sponsorship: The Key to ERP Success

Research by the Project Management Institute consistently highlights that actively engaged executive sponsors are the single most critical driver of project success. Yet, despite this, fewer than two-thirds of ERP implementation projects benefit from an assigned executive sponsor. Businesses cannot afford to overlook this vital role, especially because implementing an ERP system touches every aspect of an organization.

The Role of Executive Sponsorship in ERP Projects

An executive leader who becomes a sponsor for an ERP implementation project balances oversight with delegation. One industry marketing VP described this balance as the ability to “micromanage without the tendency to micromanage.” In other words, know the details necessary for the business to flourish without micromanaging how those details are captured and tracked. Key areas where executive leaders add value include:

• Drumming Up Support: Garnering buy-in from other executives and stakeholders.
• Removing Barriers: Addressing roadblocks to maintain project momentum.
• Managing Stakeholders: Ensuring alignment and resolving conflicts.
• Escalation Management: Stepping in to address critical issues when necessary.
• Serving as a Project Champion: Advocating for the project across the organization.

Five Leadership Skills Critical to Executive Sponsorship

Organizations with executive sponsors who consistently demonstrate the following skills experience better project outcomes:

1. Visionary Leadership: Inspiring teams to align the project’s goals with business objectives..
2. Stakeholder Persuasion: Securing support across diverse groups.
3. Efficient Decision-Making: Addressing challenges promptly and effectively.
4. Collaborative Problem-Solving: Finding solutions that benefit all stakeholders.
5. Effective Communication: Ensuring clarity and alignment at every project stage.

These skills lead to success across key project metrics such as meeting objectives, staying within budget, completing projects on time and avoiding scope creep.

How to Prepare Executive Sponsors for Project Success

Project Management Institute research indicates that internal training and mentoring from executive sponsors achieve the best project outcomes. Therefore, executive sponsors need preparation for the implementation. Preparation can be in many different forms.

• Formal Training Programs: Self-study and ad-hoc learning are far less effective in preparing leaders for the complexities of modern ERP projects. Formal training on the software and how it relates to their business is essential. Ensure that the executive sponsor knows how the software will enhance their decision making.
• Mentorship Initiatives: Pairing sponsors with experienced managers that better know the details of the business drives better outcomes.
• Continuous Development: Encourage ongoing learning to adapt to evolving project demands always with the business objectives in the forefront.

ERP implementations are among the most demanding projects an organization can undertake. Without strong executive sponsorship, the strain on core project teams can lead to delays, resource inefficiencies, and incomplete adoption. Executive leaders bring a unique combination of vision and practical support that reduces these risks.

Accelerate ERP Success with Strong Executive Engagement

Sound project management transcends technical know-how and even the project manager's skills. Success depends on executive leadership that blends strategic oversight with day-to-day support for the project. By investing in and empowering executive sponsors, companies can take their ERP implementations—and other critical projects—to new heights.

With an engaged executive sponsor, the project will experience

• Reduced resource strain.
• Quicker ERP adoption throughout the organization.
• Increased inter-departmental communication; basically better communication on all levels.

More ERP Insights from Clients First

At Clients First Business Solutions, we understand the importance of leadership in ERP success. With decades of experience in industries such as manufacturing, job shops, MRO, and wholesale distribution, we’re here to guide you through every step of your ERP journey.

Have questions? Reach out to us for personalized guidance.