Why ERP Projects Fail, And How to Keep Yours on Track
- Christiano Gherardini
- Sep 30
- 8 min read
Why ERP projects fail is one of the most pressing questions I get from business leaders considering a business transformation for their company.
I walked into the boardroom of a mid-sized manufacturer halfway through their ERP project.
The CFO looked exhausted.
Costs had ballooned 40% over budget.
The project team was logging 70-hour weeks.
Users were already resisting the system before it even went live.
The whiteboard in the corner was covered in red ink: overdue tasks, missing integrations, untested modules.
It was more than just numbers on a board.
It was people’s confidence unraveling.
Finance was anxious about closing the books.
Operations was scrambling to ship orders.
IT was firefighting integrations.
Leadership was quietly asking if they had made a catastrophic mistake with their ERP system implementation project plan.
I’ve seen this story too many times.
But I’ve also seen the opposite.
At another manufacturer, we walked into a very different scene:
Clear KPIs on the wall
Stakeholders from every department engaged in daily standups
Leadership present at every checkpoint.
The difference? Alignment, governance, and a people-first approach.
And these aren’t isolated stories.
Gartner predicts that by 2027, more than 70% of ERP initiatives will fail to fully meet their original business-case goals, with up to 25% failing outright (Gartner).
Forrester’s 2025 technology predictions echo this: companies that don’t focus on adoption, change management, and integration will see their investments wasted, while leaders who prioritize people and process will extract exponentially more value (Forrester).
So why do ERP projects fail so often, and how do you keep yours from becoming another cautionary tale?
ERP as a Business Transformation, Not Just a System Upgrade
An ERP project is not like buying a new car. It is more like building a transportation system for your entire city.
Done right, it connects every road, bridge, and intersection so people can move quickly and safely.
Done wrong, it causes gridlock, confusion, and accidents.
Too many leaders treat ERP project management as an IT upgrade.
But ERP is about transforming the way your business operates. It touches finance, operations, HR, supply chain, and customer experience. It affects every employee. And because of that, the stakes are high.
When ERP implementation failures happen, it is not just a technology issue, it is a strategic setback. Businesses lose agility, competitiveness, and employee confidence.
When it succeeds, it becomes the backbone for growth, resilience, and innovation.
Why ERP Projects Fail: The Most Common Pitfalls
I’ve led ERP initiatives for more than 30 years.
The technology has changed dramatically, with cloud, AI, and embedded analytics, but the pitfalls remain consistent:
Losing sight of the goal means systems don’t align with strategy.
Stakeholders left out go back to Excel, undermining adoption.
Change management ignored creates resistance.
Unrealistic timelines cause burnout.
Data and process blind spots derail invoicing and reporting.
Customization creep makes upgrades impossible.
Weak governance lets scope and costs spiral.
Each of these pitfalls increases ERP implementation risks.
They highlight the challenges of implementing ERP, but every one of these scenarios is avoidable if leaders commit to ERP implementation best practices.
How Much Does Poor Change Management Contribute to ERP Failures, and What are Best Practices to Avoid That?
Poor change management causes ERP failures because users resist systems they don’t understand or weren’t involved in shaping.
Without role-based training, early communication, and change champions, adoption stalls, and the system never delivers full value.
ERP projects are about people, not just systems. Employees need to understand why change is happening and how it affects their daily work.
When change management is poor:
Users feel blindsided and resist new workflows.
Training is generic and doesn’t reflect real scenarios.
Communication starts too late, leaving room for fear and rumor.
Example: A professional services firm rolled out ERP with only two weeks of notice and generic training.
Users were confused, frustrated, and adoption stalled.
Contrast that with a client who introduced change champions months before launch, ran role-based training, and kept communication transparent.
Adoption stuck because people felt included, not imposed upon.
That difference illustrates the best practices in ERP implementation: involve people early, communicate consistently, and train them in ways that reflect real-world use. Dive Deeper into Change Management
How Do Data Quality and Data Migration Issues Impact ERP Go ‑Live, and How can Companies Prepare to Minimize those Risks?
Data quality and process mapping are the foundation of ERP success.
Clean, validated data and well-documented workflows ensure the system runs smoothly, while messy data and hidden workarounds quickly cause breakdowns at go-live.
ERP magnifies both good and bad processes. If you migrate messy data or skip documenting workflows, the system will reflect those weaknesses.
Example: A services company migrated 15 years of uncleaned records.
On day one, invoices failed because addresses were invalid.
It took months to fix, delaying ROI.
Clean data and tested processes would have prevented the crisis.
This is one of the most overlooked ERP implementation risks, yet one of the most controllable with proper preparation.
How Important is Executive Sponsorship for an ERP Project?
Executive sponsorship is critical to ERP success because it provides authority, focus, and accountability.
A visible, empowered sponsor keeps priorities aligned, resolves conflicts, and ensures the project stays on track.
Executive sponsorship is the difference between momentum and drift.
ERP touches every corner of a business, and without an empowered leader to enforce priorities, projects lose direction.
Example: A global manufacturer’s steering committee met quarterly. In between, scope ballooned, budgets slipped, and risks piled up. By the time leadership reengaged, the project was a year late and millions over budget.
Sponsors who show up weekly, communicate openly, and enforce scope boundaries reduce the risk of ERP implementation failure.
What Are the Risks of Over-Customizing an ERP System?
Over-customizing an ERP system makes it fragile, expensive, and difficult to upgrade.
Too many custom features slow projects down, create long-term maintenance headaches, and limit the ability to take advantage of new capabilities.
Customizations may feel like tailoring a perfect suit, but too many can weigh the system down.
Example: A food distributor added custom modules for everything from commissions to vacation approvals.
The system was bloated, upgrades became impossible, and support costs soared.
By contrast, companies that limit customization and stick to ERP implementation best practices are more agile and keep costs under control.
How Can You Ensure High User Adoption of a New ERP System?
High user adoption comes from early involvement, clear communication, and role-based training that reflects real-world tasks.
Change champions, pilot testing, and post-go-live support ensure employees feel confident and engaged.
Adoption is the true measure of ERP success. You can have the best system in the world, but if users avoid it, you’ve wasted the investment.
To ensure adoption:
Involve users early in design and testing
Create change champions in each department
Deliver role-based training tied to real-world scenarios
Provide support after go-live, not just before
Example: A distributor we worked with launched ERP with early champions, targeted training, and post-go-live coaching.
Adoption was smooth, and within three months they reduced stockouts and improved delivery times.
This proves that ERP implementation failures are not inevitable when best practices are followed.
The Human Factor: ERP Is About People, Not Just Systems
Here’s the truth: most ERP implementation failures don’t happen because of the software. They fail because of people.
Employees resist change when they feel excluded, overwhelmed, or uncertain. Leaders underestimate how much habits and workflows must shift.
ERP success requires empathy. It requires treating adoption not as an afterthought but as a central goal. That means:
Transparent communication: why we’re changing, what’s in it for employees
Role-based training that connects system features to daily tasks
Change champions inside departments who advocate and troubleshoot
Ongoing reinforcement after go-live, not just a one-time training
I’ve seen companies treat ERP like a surprise party: “Ta-da, here’s your new system!” It doesn’t work.
By contrast, one client began role-based simulations six months before launch. Super users ran training sessions, managers tied benefits to individual roles, and leadership reinforced the message consistently.
Adoption stuck because the project respected people, not just processes.
The Future Factor: ERP Success in 2025 and Beyond
ERP projects aren’t just about today’s workflows. They must prepare for tomorrow.
AI and Automation: Finance teams are now using AI-driven cash flow forecasting. Manufacturers rely on predictive maintenance. Distributors leverage intelligent inventory optimization. These capabilities only work if ERP is designed with clean data and flexibility from the start.
Continuous Updates: Cloud ERPs update quarterly. Companies overrun with customizations often can’t keep pace and quickly fall behind competitors.
Resilience: Inflation, global supply chain shocks, and regulatory changes prove that ERP must be agile. Systems that lock in rigid workflows leave businesses vulnerable.
The ERP projects that succeed in the next five years are those that anticipate change. They are lean, data-ready, and built for intelligence.
The Turnkey Difference: A Proven Playbook for Success
How Do You Choose the Right Partner/Vendor for an ERP Project. What Criteria Matter Most?
Vendor experience
Industry Fit
Proven success
Partner methodology
With 30+ years helping small and mid-sized U.S. businesses, Turnkey has refined a right-sized methodology designed for companies between $25M–$1B in revenue.
Our approach combines industry expertise, proven best practices, and dedicated success management to reduce risk and accelerate ROI.
We’ve guided hundreds of ERP journeys. Our playbook ensures that projects don’t just go live, they thrive.
1. Align ERP to business KPIs
2. Engage stakeholders across all functions
3. Put change management at the center
4. Plan realistically, with contingencies
5. Clean data and map processes early
6. Customize minimally, document thoroughly
7. Govern with executive sponsorship
8. Future-proof for AI, automation, and agility
This isn’t theory.
One client reduced DSO by 20% within six months because our team built adoption into every stage of the rollout.
Another cut inventory stockouts by 30% within a quarter by following our best practices in ERP implementation.
Final Thoughts: A Challenge to Leaders
ERP doesn’t fail because the technology is bad. It fails because people, processes, and governance are neglected.
The question isn’t whether ERP can deliver, it’s whether your project is structured to succeed.
Ask yourself:
Do we have a clear definition of success?
Is change management built into our plan?
Are we cleaning data and mapping processes early?
Is there an empowered sponsor at the table?
Are we customizing only where it adds value?
Are we designing for user adoption from the start?
If you stopped your ERP project today and asked your users what success looks like, would they all give the same answer? If not, it’s time to recalibrate.
At Turnkey, our mission is to ensure your ERP journey doesn’t just avoid ERP implementation failure, it creates lasting transformation.
If your ERP project is at risk, or you’re planning one, schedule a 30-minute ERP Success Review with an expert.
Executive Summary: 5 Things Every Leader Must Know About ERP Success
Most ERP projects fail not because of technology, but because of people and process.
Gartner reports over 70% underdeliver, and Forrester warns that adoption and integration will make or break ROI.
Define success up front and align it with business outcomes. ERP must connect directly to measurable goals like reduced order-to-cash, faster close cycles, or improved inventory turnover.
Change management is the number one differentiator. Adoption fails when users are left out. Early communication, role-based training, and change champions drive real engagement.
Governance and realism matter. Projects fail when timelines are unrealistic, data is dirty, or customizations spiral. Sponsorship and disciplined planning keep things on track.
ERP success in 2025 and beyond requires future-proofing. Cloud, AI, and automation aren’t optional. Systems must be built lightweight, upgradable, and ready for continuous innovation.
About the Author
Christiano Gherardini, CEO of Turnkey Technologies, applies cutting-edge technology to help B2B mid-sized enterprises optimize their data and processes to achieve more in less time with less expense.
A thought leader in the Microsoft space for nearly 30 years, Chris and his team have enabled hundreds of businesses to achieve their goals and attract sustainable growth.