Jun 6, 2014

Role of CFO in ERP Implementation...

Should CFO be the owner of an ERP Implementation? 

CFO is the project owner (Sometimes even the PM)in most of the ERP Implementations.The rationale for choosing the CFO as the Project Owner is that at the end of the day 'The proof of the pudding of ERP Implementation' is the Financial books and hence CFO is the best person to judge the Financial Value of the Project. Moreover, most of the KPIs are defined in Financial Terms and are calculated from the Financial Reports. Finally, most of the organizational control systems are driven by the CFO (Finance Department) and hence they know the best when it comes to defining the requirement from the ERP System.

My questions to you are: 

a. Is this the best approach? 
b. What are the pitfalls of making a non finance person as the Project Owner? 
c. Should the implementation partner recommend the 'Project Owning Department'? Is the decision on who owns the Project internal to the Client or do the Implementation Partner have a say in that decision? 
d. Are there any rules as to which department should own the ERP Implementation? 
e. Does it matter which department owns the Project? 
(I have used the terms Project Owner and Project Manager interchangeably to mean the same idea)

3 comments:

Jak Manson said...

If I am to start looking into Microsoft ERP, wouldn't I need to talk to a consultant to make sure that I am getting the right kind of services? Honestly I am wanting to make sure that I am not doing something that I do not need to. I don not want this to be something that didn't even matter. I am wanting this whole thing to go well and over smoothly.
Jak Manson | http://www.ascentinnov.com/microsoft-dynamics-ax.html

Marteen Siddle said...

I would like to know more about CFO service. How the CFO will help us in an ERP implememtation? Is it compulsory to recruit CFO ?

Ramaswamy V Krishnamurti said...

Hello Marteen Siddle
There is no CFO Service that I am providing. However, in my opinion, depending on the size of the company, you might require a CFO to drive the ERP Implementation. Of course, it is not compulsory to recruit a CFO for ERP Implementation, however a Senior member from the finance team should be a key member of ERP Implementation Team. For additional information pl. contact me at vkrama01@gmail.com
Regards
Ram