Research flags ERP delivery risks from weak resourcing

Nine Feet Tall has published research showing that nearly two-thirds of major ERP and digital transformation programmes carry critical delivery risk. Resourcing problems were the most common issue identified in its review.

The findings are based on programme assurance and health checks across large-scale ERP, cloud, finance, HR and operational transformation work. Resource constraints were identified in 64% of programme health checks, while 52% highlighted planning failures as a major threat to delivery.

The report, Early Warning Insights: Assuring the Health of In-Flight Programmes, examines 19 programme health factors, including resourcing, planning, governance, change management, business readiness, data management and strategic alignment.

In the report, delivery risk refers to the likelihood that a programme will miss deadlines, exceed budgets, fail to achieve business outcomes or require significant rework before go-live. The analysis covered multiple sectors and included case studies from Rotork, PA Media Group and Weetabix.

Risk factors

Resourcing and planning emerged as the most frequently identified red-rated risks in the study. Governance and reporting, quality, and change management were the most common amber-rated risks.

This pattern suggests many organisations are struggling not only with staffing and project design, but also with the control mechanisms needed to keep large transformation programmes on track. ERP projects in particular often involve changes to business processes, data structures and operating models, making weak governance or poor readiness a material issue as programmes move towards implementation.

The sector breakdown showed especially high levels of red-rated risk in media, healthcare and fast-moving consumer goods. Media recorded 79% red-rated risk, followed by healthcare at 72% and FMCG at 71%.

These sectors tend to operate in fast-changing or regulated environments, where leadership changes, budget pressure and operational complexity can make delivery harder. Technology organisations and third-sector bodies showed the lowest levels of red-rated risk, although both still recorded high levels of amber-rated risk around governance, reporting and change management.

Management pressure

The study adds to broader concern among business leaders about the execution of large-scale transformation programmes, as companies try to modernise finance, HR and operational systems while controlling costs. Large ERP projects can run for years and often depend on scarce internal skills, external suppliers and sustained executive backing.

Nick Paul, Senior Manager and Business Analysis Lead at Nine Feet Tall, outlined some of the pressures affecting major programmes.

"There are many factors which continuously affect the progress of high-stakes technology investments, such as changes to the market, financial pressure, changes in senior leadership, internal resource issues or challenges with third-party technology providers.

"Drawing on our more than 20 years' experience helping clients recover momentum and realise the benefits of transformation, this report highlights the warning signs, recurring risks and characteristics of the programmes most likely to succeed," Paul said.

The report sets out warning signs of programme failure and recommendations designed to improve delivery confidence and outcomes. While the firm specialises in sectors including retail and consumer goods, housing, construction, manufacturing, legal and the third sector, the issues identified in the research are common across many large business change initiatives.

The emphasis on in-flight programme checks is notable because many transformation failures become visible only after delays or budget overruns have already taken hold. Early assurance reviews are increasingly used by boards and senior management teams to test whether plans remain realistic, whether teams have enough capacity and whether businesses are ready to adopt new systems.

For companies already committed to major software and operating model changes, the research points to a familiar set of risks: too few people in critical roles, weak planning discipline and governance structures that fail to identify problems quickly enough. In sectors with more complex regulation or market volatility, those weaknesses appear more pronounced.