When you start an ERP implementation project, your original budget will be largely based on the partner(s) Statement of Work (SoW).

The SoW details everything the partner expects to do to deliver the project and the expected cost. This cost will usually be on a time and materials basis, NOT a fixed cost. This means that the project costs WILL increase over time.

To ensure that you keep control over these cost increases, you must use a formal CR process for EVERY cost that is billable to the project.

CRs are raised for development work, consulting work and any other work not anticipated by the SoW. You must agree a CR format with your partners and INSIST that all billing is linked to a CR number or it will not be paid.

CRs have workflow that typically involves:

1. a request from the delivery team
2. request approval by the PM/PO
3. raising of a CR
4. sending CR to partner
5. agreement of CR-level SoW and cost with partner
6. execution of CR
7. billing of CR

CRs for development work have extra delivery steps between 6-7 above:

• loading of deliverable into the TEST environment
• acceptance testing of deliverable by lead or key users
• rework of deliverable if needed by partner
• acceptance of deliverable by lead

Lesson: If you do not use CRs as a kind of 'brake' on spending, your project costs can easily spiral out of control.

Implementation 2