ERP Implementation Checklist: 30 Critical Decisions

ERP implementations have a notorious failure rate—studies show 40-60% of projects fail to deliver expected benefits. The difference between success and failure usually comes down to decisions made in the first 90 days, before any software configuration begins.

After managing dozens of ERP implementations, I've identified 30 critical decision points that determine project outcomes. Miss these decisions or make them poorly, and you're setting up for an expensive, time-consuming failure.

Here's your comprehensive checklist to navigate these decisions systematically.

Pre-Implementation Foundation (Days 1-30)

1. Executive Sponsorship Structure

Decision: Who has ultimate accountability for project success?

Critical Success Factors:

CEO or CFO as executive sponsor (not IT director)
Clear authority to make trade-off decisions
Weekly project involvement, not quarterly updates
Budget authority for scope changes

Red Flags:

"Delegated" executive sponsorship
Committee-based decision making
Sponsor unfamiliar with current operations
Mixed messages about project priority

2. Project Scope Boundaries

Decision: What processes are included in Phase 1 vs. future phases?

Recommended Phase 1 Scope:

Core financials (GL, AP, AR)
Essential reporting requirements
Critical integrations only
Existing workflow replication (initially)

Phase 2+ Considerations:

Advanced reporting and analytics
CRM integration
Inventory management (unless core business)
Custom development and workflows

3. Business Process Approach

Decision: Adapt processes to software vs. customize software to processes?

80/20 Rule: Accept 80% of standard processes, customize only the 20% that provide competitive advantage.

Process Adaptation Criteria:

Adapt TO software: Administrative processes, reporting, workflow approvals
Customize software: Revenue recognition, specialized compliance, competitive differentiators
Hybrid approach: Industry-standard processes with company-specific parameters

4. Implementation Partner Selection

Decision: Internal team vs. external implementation partner?

Partner Selection Criteria:

Relevant experience: Same industry and company size
Methodology maturity: Proven project management approach
Team stability: Senior resources committed to your timeline
Reference quality: Similar scope and complexity projects

Cost vs. Risk Analysis:

Internal: Lower cost, higher risk, longer timeline
Partner: Higher cost, lower risk, faster timeline
Hybrid: Internal project management, partner for technical delivery

Technical Architecture Decisions (Days 31-60)

5. Hosting Strategy

Decision: Cloud vs. on-premise deployment?

Cloud Advantages:

Lower total cost of ownership
Automatic updates and maintenance
Faster deployment (4-6 weeks vs. 3-4 months)
Better disaster recovery and security

On-Premise Considerations:

Regulatory data residency requirements
Existing infrastructure investments
Integration complexity with legacy systems
Internal IT preferences and capabilities

6. Integration Architecture

Decision: Which systems require real-time vs. batch integration?

Real-Time Integration Required:

CRM to ERP (customer and sales data)
E-commerce to ERP (orders and inventory)
Banking integration (cash management)
Payroll integration (labor distribution)

Batch Integration Acceptable:

Marketing automation platforms
Non-critical third-party applications
Historical data warehouses
Reporting and analytics systems

7. Data Migration Strategy

Decision: Full migration vs. selective migration vs. clean slate?

Migration Approach Matrix: | Data Type | Recommendation | Reason | |-----------|---------------|---------| | GL Account History | 3 years | Audit and trending requirements | | Customer Master | All active | Ongoing relationship management | | Vendor Master | All active | Payment and purchasing continuity | | Inventory | Current only | Starting fresh reduces complexity | | Transactions | 2 years | Compliance and analysis needs |

8. Security and Access Framework

Decision: Role-based access design and approval workflows?

Access Control Principles:

Segregation of duties: No single person can complete entire financial cycle
Least privilege: Users get minimum access required for job function
Regular reviews: Quarterly access certification process
Approval hierarchies: Dollar thresholds and departmental limits

Common Role Templates:

Financial managers: Full departmental access, limited approval authority
Department heads: Departmental read access, approval workflow participation
Executive team: Cross-departmental reporting, high-dollar approvals
External auditors: Read-only access to specific modules and periods

Functional Configuration Decisions (Days 61-90)

9. Chart of Accounts Design

Decision: Maintain existing structure vs. standardize to industry best practices?

Design Principles:

Maximum 4-5 segments: Account, Department, Location, Project/Job
Scalability: Support 3-5x growth without restructure
Reporting alignment: Enable both management and GAAP reporting
Integration simplicity: Minimize mapping complexity with other systems

Common Mistakes:

Over-engineering segment structure
Mixing natural accounts with departmental structure
Creating custom segments for minor reporting needs
Ignoring integration impact on account mapping

10. Revenue Recognition Framework

Decision: Standard templates vs. custom revenue recognition rules?

ASC 606 Compliance Requirements:

Contract identification and modification handling
Performance obligation allocation
Transaction price determination
Revenue timing and recognition patterns

Implementation Approach:

Start simple: Use standard templates for 80% of contracts
Build complexity gradually: Add custom rules only as needed
Document thoroughly: Audit trail for recognition decisions
Test extensively: Validate against current recognition patterns

11. Approval Workflow Design

Decision: Replicate existing approvals vs. optimize for efficiency?

Workflow Optimization Principles:

Dollar thresholds: Escalate by amount, not automatically by hierarchy
Exception-based: Auto-approve routine transactions
Parallel processing: Avoid sequential bottlenecks where possible
Mobile enablement: Ensure approvers can act from any device

Typical Approval Matrix:

Purchase Orders:
- Under $1K: Department head approval
- $1K-$10K: Director approval
- $10K-$50K: VP approval
- Over $50K: C-level approval

Expense Reports:
- Under $500: Manager approval
- $500-$2K: Director approval
- Over $2K: Finance review + Director approval

12. Reporting and Analytics Strategy

Decision: Standard reports vs. custom dashboards vs. external BI tools?

Reporting Tier Strategy:

Tier 1: Standard ERP reports for compliance and operations
Tier 2: Custom dashboards for management reporting
Tier 3: External BI tools for advanced analytics and visualization

Implementation Sequence:

Configure essential standard reports first
Build management dashboards in Month 2-3 post-go-live
Integrate with BI tools after system stabilization (Month 4-6)

Data and Testing Decisions (Days 91-120)

13. Master Data Governance

Decision: Data ownership and maintenance responsibilities?

Data Ownership Matrix:

Customer master: Sales team owns, finance approves credit terms
Vendor master: Procurement owns, finance approves payment terms
Item master: Operations owns, finance approves costing methods
Employee master: HR owns, finance approves GL coding

Data Quality Standards:

Required fields and validation rules
Duplicate prevention and resolution
Inactive record archival procedures
Regular audit and cleanup processes

14. Testing Strategy and Approach

Decision: Testing depth vs. timeline pressure trade-offs?

Testing Phase Structure: Unit Testing (Week 1-2):

Individual module functionality
Configuration validation
Basic integration points
User access and security

System Integration Testing (Week 3-4):

End-to-end process flows
Cross-module data integrity
Integration with external systems
Performance under normal load

User Acceptance Testing (Week 5-6):

Business process validation
Report accuracy and completeness
Workflow and approval testing
Training scenario execution

15. Training Program Design

Decision: Role-based training vs. process-based training?

Training Approach Matrix: | User Type | Training Method | Duration | Content Focus | |-----------|-----------------|----------|---------------| | Power Users | Instructor-led | 16 hours | Configuration and troubleshooting | | Regular Users | Online + Lab | 8 hours | Daily transaction processing | | Executives | Overview session | 2 hours | Reporting and dashboard usage | | IT Support | Technical deep-dive | 24 hours | System administration |

Training Timeline:

4 weeks before go-live: Power user training
2 weeks before go-live: End user training
1 week before go-live: Refresher sessions
Post go-live: Just-in-time support and coaching

Go-Live Planning Decisions (Days 121-150)

16. Go-Live Timing Strategy

Decision: Big bang vs. phased vs. parallel approach?

Big Bang (Recommended for most SMBs):

Advantages: Clean cutover, no dual systems, faster ROI
Risks: Higher short-term disruption
Best fit: Single entity, straightforward processes

Phased Approach:

Advantages: Lower risk, learning from early phases
Disadvantages: Longer project timeline, integration complexity
Best fit: Multi-entity, complex operations

17. Cutover Weekend Planning

Decision: Cutover activity sequence and rollback criteria?

Cutover Checklist: Friday 6 PM:

[ ] Final data export from legacy systems
[ ] User access suspension (except cutover team)
[ ] Final backup of all systems

Saturday:

[ ] Data transformation and validation (8-12 hours)
[ ] System configuration final checks
[ ] Integration testing with live data
[ ] User access provisioning

Sunday:

[ ] End-to-end process testing
[ ] Report validation and approval
[ ] User communication and readiness check
[ ] Go/no-go decision by executive sponsor

Rollback Criteria:

Data integrity issues discovered
Critical integrations failing
Over 25% of key users unable to complete core processes
Executive sponsor assessment of business risk

18. Post-Go-Live Support Strategy

Decision: Support team structure and escalation procedures?

Support Tier Structure: Tier 1 (Internal Super Users):

Basic user questions and navigation
Standard transaction processing issues
Password resets and access requests
Training reinforcement and coaching

Tier 2 (Implementation Partner):

Configuration issues and system errors
Integration problems and data issues
Advanced user training needs
Minor customization and enhancement requests

Tier 3 (Software Vendor):

Core system bugs and performance issues
Infrastructure and hosting problems
Major customization and development work
Upgrade and maintenance planning

Change Management Decisions (Ongoing)

19. Communication Strategy

Decision: Communication frequency and format by stakeholder group?

Stakeholder Communication Matrix: | Group | Frequency | Format | Content Focus | |-------|-----------|--------|---------------| | Executive Team | Weekly | Email summary | Progress, risks, decisions needed | | Department Heads | Bi-weekly | Status meeting | Impact planning and readiness | | End Users | Monthly | Newsletter + Demo | Training updates and success stories | | IT Team | Weekly | Technical standup | Integration and infrastructure |

20. Success Metrics Definition

Decision: How will project success be measured and by whom?

Success Metrics Framework: Process Efficiency:

Month-end close time reduction (target: 20-30% improvement)
Invoice processing time (target: 50% reduction)
Report generation time (target: 70% reduction)
Error rates and rework (target: 40% reduction)

User Adoption:

System login frequency and duration
Process completion rates
Support ticket volume and resolution time
User satisfaction scores (quarterly survey)

Business Impact:

Cash flow visibility improvement
Audit preparation time reduction
Compliance reporting accuracy
Management decision-making speed

Risk Management and Contingency Decisions

21. Budget and Timeline Contingencies

Decision: Contingency allocation and trigger criteria?

Budget Contingency Planning:

Base case: 100% of approved budget
Contingency reserve: 15-25% for scope changes and overruns
Emergency reserve: 10% for major issues or rollback scenarios

Timeline Buffer Management:

Critical path protection: 20% buffer on key milestones
Resource availability: Backup resources identified and contracted
Dependency management: Alternative approaches for external dependencies

22. Vendor Relationship Management

Decision: Contract terms and service level agreements?

Key Contract Provisions:

Performance guarantees: System availability and response time commitments
Data ownership: Clear rights to export and migrate data
Support obligations: Response times and escalation procedures
Upgrade policies: Version control and compatibility maintenance

23. Quality Assurance Framework

Decision: Quality checkpoints and acceptance criteria?

Quality Gate Structure: Design Phase Gate:

[ ] Business requirements signed off by department heads
[ ] Technical architecture approved by IT and security
[ ] Integration approach validated with external systems
[ ] Project timeline and resource plan confirmed

Build Phase Gate:

[ ] Core configuration complete and tested
[ ] Data migration successful in test environment
[ ] Key integrations functional and tested
[ ] User training materials complete and reviewed

Deploy Phase Gate:

[ ] User acceptance testing completed with <5% critical issues
[ ] Performance testing confirms acceptable response times
[ ] Security review completed and approved
[ ] Cutover plan rehearsed and validated

Advanced Considerations

24. Regulatory and Compliance Alignment

Decision: Industry-specific compliance requirements and audit trails?

Common Compliance Areas:

SOX Controls: Segregation of duties, approval workflows, audit trails
Tax Reporting: Multi-jurisdiction tax calculation and reporting
Industry Regulations: HIPAA, PCI DSS, FDA, etc.
International Standards: IFRS, local GAAP requirements

25. Scalability and Growth Planning

Decision: System capacity for projected growth over 3-5 years?

Scalability Assessment:

User capacity: Current + 3x growth factor
Transaction volume: Peak processing requirements
Data storage: Historical retention and archive strategy
Integration capacity: Additional system connections planned

26. Business Continuity and Disaster Recovery

Decision: RTO/RPO requirements and backup procedures?

Business Continuity Framework:

Recovery Time Objective (RTO): Maximum acceptable downtime (typically 4-8 hours)
Recovery Point Objective (RPO): Maximum acceptable data loss (typically 1-4 hours)
Backup strategy: Frequency, testing, and restoration procedures
Failover procedures: Alternative processing capabilities and manual workarounds

27. Innovation and Future Enhancement Pipeline

Decision: Post-implementation enhancement priorities and resource allocation?

Enhancement Roadmap: Month 3-6 (Stabilization):

Performance optimization
User feedback incorporation
Minor process improvements
Additional report development

Month 6-12 (Enhancement):

Advanced analytics and dashboards
Additional module implementation
Workflow optimization
Integration expansion

Year 2+ (Innovation):

AI and automation features
Mobile application development
Advanced reporting and analytics
Strategic system integrations

Implementation Success Patterns

28. Project Management Methodology

Decision: Agile vs. waterfall vs. hybrid approach?

Hybrid Approach (Recommended):

Waterfall structure: For overall project phases and milestones
Agile elements: For configuration, testing, and user feedback cycles
Sprint cycles: 2-week iterations during build and test phases
Regular demos: Weekly progress demonstrations to stakeholders

29. Vendor Partnership Strategy

Decision: Transactional vs. strategic relationship with implementation partner?

Strategic Partnership Benefits:

Long-term support: Ongoing optimization and enhancement support
Knowledge retention: Team continuity and institutional knowledge
Cost efficiency: Reduced ramp-up time for future projects
Innovation access: Early access to new features and capabilities

30. Organizational Change Readiness

Decision: Change management investment and organizational preparation?

Change Readiness Assessment:

Leadership commitment: Visible executive support and participation
User engagement: Active participation in design and testing phases
Cultural alignment: Organization's comfort with technology and process change
Resource availability: Dedicated internal resources and time commitment

Change Management Investment:

Budget allocation: 15-25% of total project budget for change management
Resource commitment: Dedicated change management role (0.5-1.0 FTE)
Training investment: Comprehensive initial and ongoing training programs
Communication infrastructure: Regular updates and feedback mechanisms

Conclusion: The Path to ERP Success

ERP implementation success isn't about choosing the right software—it's about making the right decisions systematically throughout the project lifecycle. These 30 critical decisions form the backbone of successful implementations.

The companies that excel at ERP implementations treat them as business transformation projects, not technology deployments. They invest heavily in planning, change management, and organizational preparation before writing the first line of code.

Most importantly, they recognize that ERP implementation is not a destination but the beginning of a journey toward operational excellence. The decisions you make during implementation create the foundation for years of improved efficiency, better decision-making, and competitive advantage.

Start with this checklist, adapt it to your specific situation, and commit to making each decision thoughtfully and deliberately. Your future self (and your entire organization) will thank you for the investment in getting these decisions right.

Planning an ERP implementation? Schedule a consultation to review these critical decisions and develop a comprehensive implementation strategy tailored to your organization.