I’ve had the great pleasure and excitement of having worked as a practicing and independent ERP consultant for the better part of two decades. I have worked in all types and configurations of client and consultancy professional environments during that time and each and every year in the ERP ecosystem convinces me even more of the importance of understanding the biases and origin stories of your “Independent” ERP consultancy team staffing your ongoing ERP implementation project:
In my personal and professional opinion, Consultants alongside unqualified managing partners – in addition to what I would term professional missteps in project conduct or technical architecture – have at certain critical junctures during ERP implementation projects adversely affected my clients. This is one of the major reasons why I decided to set up the Seibert Consulting Group. But my experiences in the ERP marketplace have informed my formulation of the questions and tips regarding the vetting of your ERP consultants you will find below.
Perhaps the takeaway is that you can avoid making these same mistakes by posing the right questions to a potential partner, in addition to adequately vetting them before you make the all-important decision of trusting the future of your Business to them.
- Are You Actually Independent?
With the plethora of disparate technologies available as a part of your digital transformation, it is crucial to ensure that your ERP consultants are genuinely independent. You need to know exactly whether they are resellers or partners of software vendors, or if they are affiliated with other similar companies that may divide their loyalty. Again, you will want to be sure that your comparison of Oracle | NetSuite ERP or Oracle Cloud vs SAP S/4HANA vs Microsoft Dynamics 365 vs any other ERP system is impartial and not being fueled by hidden monetary motives.
- How Much Hands-on Implementation Experience Does Your Consultant Have?
I firmly believe that academic consultants aren’t of much value to any business. Some of the best hands I’ve seen on the job are those that can combine theory with real hands-on implementation experience. Verify that your potential and current consultants have actually implemented several technologies in the past.
- What Level of Dedication Will Your Managing Partners Offer – And Do They Know What Consulting Entails?
You need to be guaranteed that your project and organization will remain at the top of the priority list of your consulting firm. Be sure that you have complete trust in their background and ability to further your project – particularly when difficulties start to arise.
- How Much Time Are You Going to Spend Getting Acquainted with My Business and Team?
Consultants are way more effective on the ground, working closely with your team than when they are on the 10th floor of their office. They need to be on-site, learning your culture, understanding the intricacies of your operation and giving you the personalized experience that they have charged you for.
- How Many Times Have Your Firm Been Sacked in The Last Two Years?
An excellent indicator of the ability of a consulting team is their past references, so dig up some of the more recent ones. Find out how often they have been sacked by clients they have worked with very recently. Chances are that if they have a long list of unhappy clients, you are bound to be one too.
- How Many of Your Most Recent Clients Can Provide Positive References?
Some consulting firms live on old glory. Quiz them about their recent projects and be sure that they can show you some of their more recent successes.
- How Much of Your Revenue Is Gotten Via ERP Implementation Vs ERP Software Selection Projects?
Steer clear of consulting firms without adequate experience and revenue from several stages of an implementation cycle. You need to be sure that your consultants don’t just do implementations and pretend to do software (or vice versa). So, do some research into the exact kind of work they do. Regardless of their experience in Oracle | NetSuite ERP, Microsoft Dynamics 365 implementations, SAP S/4HANA implementations, or any kind of digital transformation, the need for a relevant hands-on experience cannot be negotiated.
- What Reputation Does Your Company Have Among Resellers, Vendors and Competitors?
Competitors that don’t get along well with other players aren’t the best choice. Do some asking and find out what other relevant players think of them. If you hear something terrible, then keep in mind that there is often an iota of truth to every rumor.
- How Do Current and Past Employees Regard Your Firm?
A dissatisfied workforce can considerably hinder the effectiveness of any consulting company. Check out reviews about them on Glassdoor and visit their LinkedIn page to get an idea of where the company is headed. Also, try reaching out to some of their former employees via LinkedIn to get some firsthand information.
- How Much Turnover Have You Recorded Between Executives and Consultants in The Last Couple of Years?
A warning sign that a company is in distress is their turnover rate per year (greater than 10%). Keenly scout the company’s LinkedIn page to ascertain how many people have left their position in recent years. Again, watch out for consulting firms that have a high turnover rate in their executive positions.
Ideally, you want to partner with an ERP consultant that will be in business for a long time. The best ones can make you successful, while the bad ones can considerably mar your chances of success.
For more tips and tricks regarding the selection process you should be emplying to select the best independent ERP consultants for your project, call the Seibert Consulting Group at 760-205-5440, or drop us a line at hello@seibertconsulting.com
FAQs
What are the different types of Independent ERP Consultants?
Types of Independent ERP Consultants
Independent ERP consultants can be classified into various types based on their specialized roles and expertise within the realm of enterprise resource planning (ERP) systems. These types include:
Selection Consultants
These consultants aid organizations in selecting the most suitable ERP system by assessing the business requirements, comparing different solutions, and recommending the best fit.
Implementation Consultants
Once the ERP system is chosen, implementation consultants guide businesses through the process of setting up the software. This involves configuring the system, migrating data, and ensuring alignment with existing business processes.
Functional Consultants
Specializing in specific modules or functions of an ERP system, such as finance, human resources, manufacturing, or supply chain, these consultants tailor the ERP system to meet the specific needs of the business processes related to these functions.
Technical Consultants
They focus on the technical aspects of ERP systems, including system architecture, database management, customizations, and integrations with other systems.
Change Management Consultants
These consultants help organizations manage the human side of change that comes with implementing an ERP system. They ensure that employees are adequately trained, onboarded, and comfortable with the new software.
Project Managers
Responsible for overseeing the entire ERP project, project managers ensure that it progresses according to plan, remains within budget, and achieves the defined objectives.
Data Migration Specialists
These consultants focus on transferring data from old systems to the new ERP system. This involves cleaning, mapping, and transforming data to maintain accuracy and integrity within the new system.
Integration Specialists
Ensure seamless integration of the ERP system with other systems within the organization, such as CRM platforms, e-commerce systems, or third-party applications.
Post-Implementation Support Consultants
These consultants provide ongoing support, troubleshooting, and optimization services once the ERP system is live.
Industry-specific Consultants
Specializing in ERP solutions for specific industries, such as healthcare, manufacturing, retail, or the public sector, they possess deep industry knowledge and understand the unique challenges and requirements of those sectors.
Strategic Consultants
Focus on aligning the ERP system with the broader business strategy and long-term goals of the organization.
Training Consultants
Specialize in training end-users to effectively utilize the ERP system, ensuring maximum efficiency and productivity within the organization.
What factors can affect the cost of hiring an independent ERP consultant?
The cost of hiring an independent ERP consultant can be influenced by several key factors. Firstly, the scope of work required can significantly impact the overall price, with a more comprehensive scope involving tasks such as software selection, implementation, training, and post-implementation support typically leading to higher costs.
Another factor to consider is the consultant’s industry specialization. Consultants who specialize in specific sectors such as healthcare, manufacturing, or finance may command higher rates due to their specialized knowledge and experience in those areas.
Geographic location is also a critical element affecting consultant costs. Rates can vary based on the country or city where the consultant is located, with some regions being more expensive than others.
To ensure clarity and agreement on both sides, it is crucial to request a detailed proposal and contract outlining the scope of work, deliverables, timelines, and costs before engaging an independent ERP consultant. This level of transparency helps prevent misunderstandings and ensures that both parties are in alignment regarding expectations and deliverables, ultimately leading to a smoother and more successful consulting engagement.
How much do independent ERP consultants typically cost?
Independent ERP consultants typically cost varying amounts based on their level of experience and expertise. Junior Consultants might charge $100-$150 per hour, Mid-level Consultants may range from $150-$300 per hour, and Senior Consultants can command rates upwards of $300-$500 per hour. For specific deliverables, consultants may offer fixed-fee arrangements, which can range from a few thousand dollars to hundreds of thousands of dollars for larger projects. Retainer fee models may involve a set monthly payment for ongoing services, while project-based fees for ERP implementations can range from tens of thousands to millions of dollars, depending on the project’s scale. Additional costs such as travel, lodging, specialized software, and tools may also impact the overall cost. Factors influencing the cost include the scope of work, industry specialization, and geographic location of the consultant. To avoid misunderstandings, it’s crucial to have a detailed proposal and contract outlining the scope of work, timelines, deliverables, and costs before engaging an independent ERP consultant.
