Business software and golden parachutes – time for action?

Expert Corner

When it comes to poorly functioning managers, everybody understands the concept of the ‘golden parachute.’ By contrast, poorly functioning ERP systems are usually tolerated for much longer. And they can do your business a lot of damage. Makes no sense, right? It’s time for new insights!

Poor performing managers need to leave organisations. We read it daily in the papers. Buying off an employment contract can be costly. But we all understand that inaction leads to even higher costs. That is why we need to bite the financial bullet. Same story for long-term leases for property. If the use is structurally declining, it is often more sensible to buy off the contract. 

How differently do we act when it comes to poorly functioning business software! Today, these solutions that are ‘enablers’ for growth and success. That can sometimes even make the difference between survival and bankruptcy. But here, it is still the CFO who determines when the time is right to start the research for replacement. And not one day earlier!

All around the world, organisations mount defensive arguments to replace their ERP or CRM systems. You all know them. Vendor goes belly-up. Versions no longer supported. Rules and regulations no longer honored. But still one of the first questions of the top management remains “Can’t we stretch it just one more year?” Meanwhile, your service level has declined alarmingly, your employees get frustrated, dissatisfied customers are leaving the company and you have no control on your numbers.

So go on the offensive! Investments in ERP or CRM systems should be made for pro-active reasons – especially these days. If your current system is no longer adequate, give it a golden parachute! Say goodbye as soon as possible and implement an appropriate solution!


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