Why Do ERP Implementations Fall Short of Expectations and How Can Companies Avoid Common Pitfalls
- Roger Pujol, CPIM, CSCP
- 7 hours ago
- 4 min read
Enterprise Resource Planning (ERP) systems promise a unified platform that seamlessly aligns all business processes. They are sold as the ultimate solution for consistency, accuracy, and efficiency. In theory, an ERP should be like a solid block of cheddar cheese—smooth, continuous, and reliable. In reality, many ERP implementations end up looking like Swiss cheese, full of holes that disrupt workflows and create confusion. This is not due to poor software or incompetence, but to how companies adopt and adapt to these systems. Culture, fear, shortcuts, and habits shape the outcome more than technology itself.
This post explores why ERP projects often fall short and offers practical advice on how companies can avoid common pitfalls to get the most from their ERP investments.
Why ERP Projects Develop “Holes”
ERP systems require significant upfront decisions and changes. When these are postponed or ignored, gaps appear. These gaps become permanent and cause ongoing problems.
The “We’ll Fix It Later” Gap
Every ERP project faces tough decisions that seem too complex or political to resolve before launch. Teams often say, “We’ll fix it after go-live.” Unfortunately, this rarely happens. These unresolved issues become holes in the system:
Missing workflows that users need to complete tasks
Partially configured modules that don’t communicate properly
Data structures that don’t match real business needs
Over time, employees create workarounds to bypass these holes. These workarounds become part of daily operations, making the system inconsistent and unreliable.
Tribal Knowledge Wins Over ERP Rules
ERP systems demand explicit, documented rules. Organizations, however, often rely on unwritten, informal rules—what people call tribal knowledge. When the ERP requires a step that the culture ignores, the culture wins every time.
This leads to:
Unposted receipts that distort financial data
Phantom inventory that causes stock inaccuracies
Bills of Materials (BOMs) that show ideal scenarios, not actual production
Material Requirements Planning (MRP) runs, but is ignored in practice
The ERP ends up reflecting only part of the business reality, with many gaps where the culture resists change.
Lean Philosophy Clashes with ERP Requirements
Lean management encourages minimizing transactions, trusting frontline workers, and keeping processes simple. ERP systems require detailed recording, standardization, validation, and auditing. These opposing philosophies create tension:
Lean teams may skip data entry steps to save time
ERP demands complete and accurate data for reporting and compliance
This conflict causes incomplete or inaccurate records in the system
The result is an ERP system that looks complete on paper but lacks real-world accuracy.
How to Avoid These Common ERP Pitfalls
Understanding why holes form is the first step. The next step is taking concrete actions to prevent or fix them.
Address Tough Decisions Early
Don’t postpone difficult decisions. Create a clear plan to resolve political or complex issues before go-live. This includes:
Defining workflows completely
Aligning stakeholders on process changes
Setting realistic timelines for configuration
If a decision can’t be made immediately, assign ownership and deadlines to avoid indefinite delays.
Document and Challenge Tribal Knowledge
Make implicit rules explicit. Conduct workshops to capture tribal knowledge and compare it with ERP requirements. This helps:
Identify gaps between culture and system
Educate teams on why new steps matter
Adjust ERP configurations to reflect reality where possible
Encourage open communication so employees feel heard and involved in the change.
Balance Lean and ERP Needs
Find a middle ground between lean principles and ERP demands:
Simplify data entry without sacrificing accuracy
Use automation to reduce manual steps
Train frontline workers on the importance of data for business success
This balance helps maintain lean efficiency while keeping ERP data reliable.
Invest in Change Management
ERP implementation is as much about people as it is about technology. Strong change management includes:
Clear communication about benefits and impacts
Training tailored to different user groups
Support systems for troubleshooting and feedback
Companies that invest in change management see higher adoption and fewer holes in their ERP systems.
Continuous Improvement After Go-Live
ERP projects don’t end at launch. Regularly review system performance and user feedback to:
Identify new gaps or workarounds
Update configurations and processes
Reinforce training and communication
Continuous improvement keeps the ERP system aligned with evolving business needs.
Final Thoughts
Final Thoughts: The Cheese Doesn’t Have to Stay This Way
Every ERP ends up with holes. That’s normal. What matters is whether those holes become permanent structural weaknesses or opportunities for improvement.
A Swiss‑cheese ERP isn’t a sign of failure. It’s a sign of where the business is ready to grow next.
When companies stop treating ERP as a one‑time installation and start treating it as an evolving operational system, the holes shrink. Processes tighten. Data becomes trustworthy. People gain confidence. And the ERP finally becomes what it was meant to be: a backbone, not a burden.
Call to Action: Patch One Hole—Just One
If your ERP feels more like Swiss cheese than a solid block of cheddar, don’t boil the ocean. Start with one gap that’s hurting the business today.
Pick a hole. Map it honestly. Fix it properly. Show the win. Repeat.
If you want help identifying the right starting point—or you want an outside perspective on why the holes formed in the first place—I’m here for that conversation. Sometimes all it takes is a 15‑minute call to turn a messy ERP into a roadmap for operational clarity.
Roger Pujol, CPIM, CSCP, the founder of Champion Business Solutions, LLC, is an ERP consultant & advisor specializing in ERP Business software for the manufacturing and distribution industries. He shares insights and experiences on assisting small and medium-sized businesses (SMBs) to enhance their operations.
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