Because enterprise resource planning (ERP) software implementations are large, expensive projects that involve complex technology and multiple government entities, elected officials and residents often scrutinize them intensely. To meet everyone's expectations and keep ERP projects under control, local governments need to prepare detailed plans and schedules and secure strong leadership to manage projects from beginning to end.

ERP systems help governments pay employees, manage their workforces and finances, buy products and services, and conduct business with the public. As a result, they touch all aspects of daily government operations and are highly complex.

An ERP system's implementation may take a city or county up to five years, and even then may fail because communities do not understand its complexity and effects across different departments and IT infrastructures. Unsuccessful ERP programs can disrupt government operations by preventing agencies from properly paying their employees or vendors, or properly reporting mandatory information.

However, properly implemented ERP systems can make government finance, human resources and other public services more efficient and transparent to residents and elected officials. When three member cities of the North Central Texas Council of Governments (NCTCOG) began planning to install ERP systems in November 2004, they researched problems other communities had experienced and agreed on three key project strategies to avoid them. First, the project management team, which included city employees and consultants, secured the approval of the NCTCOG shared service board — including executive sponsors from the three member cities and the NCTCOG — to ensure staff focused on meeting the project's time and budget goals. The team also created trust and teamwork among project members by encouraging individual involvement and compromise in key decisions.

Finally, the team assigned knowledgeable staff to project tasks to help resolve problems quickly. For example, the consultants translated complex city operations into functional requirements that the software could address, while city staff gave detailed information about the purpose and timing of their operations.

Local governments can further reduce problems with their ERP projects by minimizing customization and adapting their operations to match the software's format. Any system modifications made during the initial implementation will require constant updates. Opting for a simple implementation that limits software modification, as NCTCOG did, will make it easier to add software features as they become available.

By adopting those strategies and involving all key stakeholders throughout planning and implementation, local governments can make challenging ERP projects manageable, while assuring the best possible outcomes. Local governments that successfully navigate complex ERP projects not only save money and improve operations, but also foster ongoing collaboration among department peers and consultants. That ultimately helps cities and counties continue to improve business processes and enhance services to employees and residents.

Mercer is administration director for the North Central Texas Council of Governments, and Kaplan is national practice director, Lawson Professional Services, for St. Paul, Minn.-based Lawson Software.