Budget considerations

What Every CFO Should Know About Implementing a New ERP What Every CFO Should Know About Implementing a New ERP
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Transcript

Hi, everyone. Welcome back to lesson nine, managing your LRP budget. In this lesson, I'm going to talk about a few ideas on managing the LRP budget to maximize the likelihood of success, but that ran out of money. I'm Jennifer Nicholson. Isn't it sad that an IR p implementation will cost you twice as much as you planned for by the time you're finished? Then go is easy to overspend an AARP budget.

If you follow the rules outlined above, however, and plan plan plan, the chance of this happening is greatly reduced. plan the project, plan the testing and plan the training and implementation. Make sure you estimate your spending over time and budget accordingly. Spending all of your budget in the first few months, maybe a career limiting move, and the meetings request additional funding from the steering committee, maybe horribly painful for you. Make sure you budget for what you think is going to cost. Add a generous contingency on top of that, and then increase it even more.

Get approval for that Number up front, and you will come out a superstar when you complete the project significantly under budget. Monthly spending is overwhelming Li a function of people. And the easiest way to make adjustments is reduced consultants and add highly talented people from within your organization. Generally speaking, you'll be able to pay two or three internal people for every consultant you use. Lastly, use that final 25% surplus the last six weeks before go live and for six weeks after there will be unexpected problems. And that is when you need the flexibility to spend money aggressively and wisely in order to quell rumors and find speedy resolution to emotional problems.

Once people recognize that problems are being corrected, quickly, competent source and the probability of success takes a huge jump up. No one wants to spend any more than half two on an IR p implementation. But it is better to have an LRP cost a little more and be successful and have a cheap air p implementation. In the final lesson, we will look at advice for maximizing your successful ear p implementation. Thanks for joining me

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