Steering Committee Failures: Are They Sabotaging SAP Projects?
NOEL BENJAMIN D'COSTA
I hope you enjoy reading this blog post. If you need any advise, please do not hesitate to reach out by clicking here
The SAP implementation was faltering, and tensions were rising. The Steering Committee, responsible for key decisions, wasn’t meeting as planned because the C-suite members were often unavailable. Without these meetings, critical approvals were delayed, creating bottlenecks across multiple project phases. Milestones were slipping, risks weren’t being addressed, and frustration among stakeholders was growing.
To fix this, I took a proactive approach. First, I restructured the Steering Committee schedule around the C-suite’s availability, consolidating meetings into shorter, high-impact sessions. Each session focused only on critical SAP project decision-making items, with clear agendas shared well in advance.
Next, I implemented an asynchronous decision process, which is off-Schedule Decision-Making. Using tools like SAP Solution Manager, we created a real-time dashboard where committee members could review updates and approve key items remotely. For urgent matters, a delegate system was introduced, empowering senior leaders from their teams to attend and make decisions on their behalf.
Within weeks, the project regained momentum. Milestone reviews were back on track, risks were being mitigated proactively, and stakeholder confidence returned.
This experience underscored the importance of adaptability in Steering Committee SAP governance. In this guide, I’ll share how to ensure your committee operates effectively, even when faced with challenges like limited availability. Let’s get started!
Key Takeaways
An effective Steering Committee is vital for SAP project success. Key takeaways include:
- Strategic Oversight: The Steering Committee ensures the SAP project aligns with business goals and delivers measurable value.
- Decision-Making: Steering Committees make critical decisions about scope, budget, and timelines, and resolve escalated issues.
- Risk Management: Proactive risk identification and mitigation are essential for project success.
- Stakeholder Engagement: The Steering Committee bridges the gap between executive leaders and project teams, ensuring alignment and clear communication.
- Milestone Reviews: The Steering Committee approves critical deliverables at key project phases to maintain momentum and quality.
- Member Selection: Selecting the right Steering Committee members ensures that the project has the leadership and expertise required for success.
By focusing on these areas, a Steering Committee can effectively guide an SAP project to successful completion.
What is a Steering Committee in SAP Projects?
Definition and Purpose
A Steering Committee in SAP projects is a group of senior decision-makers tasked with guiding the project to align with organizational goals. They provide strategic oversight, resolve critical issues, and ensure that the project delivers value to the business.
Unlike the day-to-day operational focus of project teams, the Steering Committee acts as the project’s strategic anchor, making decisions that affect scope, budget, and timeline.
Their primary purpose is to ensure that the SAP project stays on track, adheres to business priorities, and addresses risks before they escalate. The committee serves as the bridge between executive leadership and the project team, maintaining alignment between business strategy and project execution.
Key Roles and Responsibilities
1. Strategic Oversight
The Steering Committee ensures the SAP project aligns with business goals and delivers measurable value.
Example: In a retail SAP implementation, the Steering Committee identified the need to prioritize an e-commerce integration to align with the company’s growth strategy. Shifting the focus early helped to ensured the system supported future business expansion.
2. Decision-Making
Steering Committees make critical decisions about scope, budget, and timelines and resolve escalated issues.
Example: During the testing phase of an SAP implementation for a manufacturing company, the project team flagged a significant delay in supplier data migration. The Steering Committee approved additional resources and extended the timeline by two weeks to avoid compromising data accuracy.
3. Risk Management
Proactive risk identification and mitigation are essential for project success.
Example: In a public sector SAP project, the Steering Committee identified a dependency on third-party vendors for data migration as a potential risk. They approved a contingency plan that included parallel data validation to minimize delays.
4. Stakeholder Engagement
The Steering Committee bridges the gap between executive leaders and project teams, ensuring alignment and clear communication.
Example: In a financial services SAP project, the Steering Committee organized quarterly executive briefings to report progress and address concerns. This improved stakeholder confidence and ensured continued support.
5. Milestone Reviews
The Steering Committee approves critical deliverables at key project phases to maintain momentum and quality.
Example: In the blueprinting phase of a pharmaceutical SAP project, the Steering Committee reviewed and approved the process flow designs, ensuring they met compliance and operational requirements before moving to the Realize phase.
Steering Committee Member Selection Based on Project Size
The composition of a Steering Committee depends on the size and scope of the SAP project. Here’s how to structure it effectively:
Defining the Steering Committee based on Project Size
Project Size | Description | Users Impacted | Budget | Timeline |
Small Projects | Department-specific implementations with limited stakeholders and low complexity. Examples: Implementing SAP for Finance in a single department or Rolling out SAP Time Tracking for HR in one region. | 10–50 | <$500,000 | 3–6 months |
Medium Projects | Cross-functional implementations involving multiple departments, moderate complexity, and broader business impact. Examples: Upgrading to SAP S/4HANA for Finance and Supply Chain or Implementing SAP SuccessFactors for HR and Payroll. | 50–500 | $500,000–$5M | 6–12 months |
Large Projects | Enterprise-wide transformations spanning the entire organization, with high complexity and strategic importance. Examples: Full SAP ERP implementation across Finance, Operations, HR, and Procurement or Global rollout of SAP S/4HANA. | 500+ | >$5M | 12+ months |
Steering Committee Composition based on Project Complexity
Role/Position | Small Project | Medium Project | Large Project |
Executive Sponsor (C-Suite) | Optional: CEO, CFO, or CIO if high impact | Required: CFO or CIO for strategic oversight | Essential: CEO, CFO, and CIO for enterprise alignment |
Project Sponsor | Functional Head (e.g., Finance or Operations) | Senior Leader from impacted functions | Senior VP or Director overseeing multiple functions |
Department Heads | 1-2 heads from impacted departments | 3-5 heads representing critical business areas | All department heads representing core and support functions |
IT Lead | Senior IT Manager | IT Director | CIO or IT Steering representative |
External Consultant | Optional | Recommended | Required for independent validation and expertise |
Compliance/Legal Advisor | Optional based on industry needs | Recommended for compliance-heavy projects | Essential for industries with strict regulations |
End-User Representative | 1 key user | 2-3 key users from critical departments | Representatives from all major business units |
Finance Representative | Optional unless budgets are impacted | Required for cost control | Essential for organizational budget alignment |
HR Representative | Optional unless HR is directly impacted | Recommended for cross-functional projects | Required for HR/payroll-impacting projects |
Change Management Lead | Optional for less impactful projects | Recommended for cross-department alignment | Essential for enterprise-wide adoption |
Selecting the right Steering Committee members ensures that the project has the leadership and expertise required for success, regardless of its size. Prioritize committed individuals who can provide strategic oversight and make timely decisions to keep the project on track.
Other Topics of Interest
Importance of a Steering Committee in SAP Implementations
1. Ensuring Strategic Alignment Between the Project and Business Goals
The Steering Committee ensures that the SAP project stays aligned with what matters most—your business goals. I’ve seen a lot on how this alignment prevents projects from becoming disconnected from organizational priorities.
Example: In a logistics company’s SAP implementation, the Steering Committee prioritized automation in inventory management to meet cost-reduction targets. This decision ensured the project directly contributed to the company’s bottom line.
2. Oversight for Key Decisions and Milestones
The Steering Committee provides critical oversight, ensuring that major decisions and milestones are handled with care. From approving deliverables to resolving escalations, their role is central to keeping the project on track.
Example: In a global retailer’s SAP project, I witnessed the Steering Committee hold back the go-live approval until all high-priority defects were fixed. Their insistence on quality saved the company from potential disruptions and financial losses.
3. Managing Risks and Facilitating Issue Resolution
Proactive risk management is one of the Steering Committee’s most valuable contributions. I’ve often worked with committees to identify potential issues early and allocate resources to resolve them efficiently.
Example: In a healthcare SAP project, the Steering Committee detected delays in compliance testing. By approving additional resources, they ensured that the project avoided regulatory penalties and stayed on schedule.
A strong Steering Committee isn’t just helpful—it’s essential. By aligning goals, overseeing milestones, and addressing risks, they ensure your SAP implementation delivers real value.
How to Set Up an Effective Steering Committee for SAP Projects
1. Identifying the Right Members
The foundation of an effective Steering Committee lies in selecting the right people. The committee should include senior leaders with decision-making authority, functional heads who understand the business processes, and, when needed, external experts for specialized insights.
Example: In an SAP project for a manufacturing company, the committee included the CFO, CIO, supply chain head, and an external SAP consultant. This mix ensured financial oversight, IT alignment, and operational insights were all addressed.
Tip: Choose members who are not only influential but also committed to the project’s success. Their availability and engagement are critical.
2. Defining Roles and Expectations
Clearly defining each member’s role avoids confusion and ensures accountability.
- Chairperson: Leads meetings and drives strategic decisions.
- Functional Heads: Represent their departments and ensure the project meets operational needs.
- External Experts: Provide objective advice and technical expertise when required.
Example: In one of my projects, a retail SAP implementation, the finance head was tasked with ensuring the project adhered to budget constraints, while the IT director managed technical feasibility reviews. Everyone understood their responsibilities, leading to smoother decision-making.
3. Establishing a Clear Communication and Reporting Structure
Transparent communication ensures everyone stays informed and aligned. Set up regular meetings, shared dashboards, and structured reporting to facilitate this.
Example: In a healthcare SAP project, we established bi-weekly Steering Committee meetings, with progress updates provided via SAP Solution Manager. For urgent decisions, real-time dashboards allowed members to approve changes remotely.
Tip: Make reporting simple but effective. Use visual tools like Gantt charts and KPI dashboards to highlight key metrics and progress.
By identifying the right members, defining clear roles, and ensuring effective communication, you can create a Steering Committee that provides strong SAP project governance and drives successful outcomes.
4. Holding Regular, Focused Meetings with Clear Agendas
Consistency and structure are essential for Steering Committee meetings. Regularly scheduled sessions with clear agendas ensure that discussions remain productive and decisions are timely.
Example: In an SAP implementation for a retail chain, I helped set up bi-weekly meetings that lasted no longer than an hour. Agendas were distributed 48 hours in advance, focusing on milestones, risks, and pending decisions. This kept everyone prepared and minimized time wasted.
Tip: Avoid cramming too many topics into one meeting. Prioritize critical items and delegate non-urgent issues to appropriate teams.
5. Ensuring Accountability with Well-Defined KPIs
Steering Committees should track progress through measurable KPIs tied to project goals. These KPIs help ensure accountability and keep the project aligned with its objectives.
Example: During the testing phase of a manufacturing company’s SAP rollout, KPIs such as defect resolution rates and testing coverage were monitored by the Steering Committee. This enabled them to focus on high-impact areas and ensure readiness for the next phase.
Tip: Use visual dashboards to report KPIs during meetings. Tools like SAP Solution Manager can automate this process, keeping everyone informed in real time.
You can read more about ERP Implementation KPIs in my other blog post.
6. Fostering Collaboration Between Stakeholders and Project Teams
Collaboration is the glue that holds the Steering Committee and project teams together. Open communication channels ensure alignment between strategic goals and operational execution.
Example: In a public sector SAP project, the Steering Committee facilitated quarterly town halls where project teams presented progress and challenges. This built trust and provided the committee with on-ground insights to make better decisions.
Tip: Encourage two-way feedback. While the committee provides guidance, project teams should feel empowered to share challenges and propose solutions.
By holding focused meetings, tracking KPIs, and fostering collaboration, the Steering Committee can effectively oversee the project, drive alignment, and ensure a successful SAP implementation.
You can read all about stakeholder management in my blog title – Stakeholder Management Strategy That Drives Success
Challenges a Steering Committee would face in SAP Projects
1. Managing Conflicting Priorities Across Departments
In SAP projects, different departments often have competing priorities, and aligning them can be a significant challenge for the Steering Committee.
Example: In a manufacturing SAP implementation, the finance team prioritized budget controls, while the operations team pushed for additional features that increased costs. The Steering Committee facilitated discussions to balance these priorities, approving a phased implementation approach to meet both needs.
Tip: Encourage open dialogue and focus on the project’s strategic objectives to mediate conflicting interests effectively.
2. Balancing Strategic Oversight with Operational Details
Steering Committees often struggle to find the right balance between high-level governance and the need to understand operational nuances.
Example: During the testing phase of an SAP project for a logistics company, the Steering Committee’s lack of understanding of technical challenges delayed decisions. This was resolved by inviting the testing lead to present a clear summary of issues, enabling the committee to make informed decisions.
Tip: Avoid micromanagement. Trust your project teams to handle operational details while using clear, concise updates to inform strategic decisions.
3. Lack of Engagement from Committee Members
When Steering Committee members are disengaged or unavailable, critical decisions get delayed, impacting project timelines and outcomes.
Example: In a retail SAP project, committee meetings were often postponed due to senior leaders’ busy schedules. To address this, we introduced shorter virtual check-ins and delegated authority to senior team members when key stakeholders were unavailable. This kept the project moving without compromising governance.
Tip: Set clear expectations for availability and establish a delegate system to maintain continuity in decision-making.
By addressing these challenges proactively, Steering Committees can provide the guidance and support necessary to ensure SAP projects remain aligned, efficient, and successful.
Interesting Insights for your SAP ERP Implementation Team
Real-Life Examples of Steering Committee Impact in SAP Projects
Case Studies Where Effective Committees Drove Project Success
A well-structured Steering Committee can significantly improve the outcome of any SAP project. Here are some standout examples:
Example 1: In a global retail SAP implementation, the Steering Committee took charge early on in the SAP project governance by ensuring key milestones aligned with business priorities. With regular SAP milestone reviews, the committee was able to resolve issues before they escalated, which resulted in a 15% reduction in time to market. This proactive oversight made sure the project was delivered within budget and met customer expectations.
Example 2: A large manufacturing firm had a complex SAP integration across multiple sites. The Steering Committee adopted a clear strategy, including regular risk management sessions. By engaging all relevant stakeholders, they addressed site-specific challenges early, leading to a smoother SAP project implementation strategy and a 25% improvement in operational efficiency post-go-live.
Lessons Learned from Steering Committee Failures
While success stories are valuable, failures offer crucial insights into what not to do.
Lesson 1: A public sector SAP project faced severe delays when the Steering Committee struggled with disengagement. High-level members were not showing up for meetings, and without their oversight, the project went off-track. The lack of Steering Committee engagement SAP led to budget overruns and missed deadlines. The key takeaway: Ensure all members understand their role and commitment level from the start. Use Steering Committee communication strategies to keep them involved and accountable.
Lesson 2: In another instance, a committee was too focused on SAP project decision-making at the operational level rather than the strategic level. This lack of strategic oversight led to confusion over project scope and an inability to align the implementation with broader business goals. The lesson here is to distinguish between operational details and high-level decision-making to maintain SAP project alignment.
Strategies to Replicate Success in Your Organization
To replicate the success of these Steering Committee SAP projects benefits, consider the following strategies:
- Clear Role Definition: Make sure each committee member understands their responsibility and decision-making power, from functional heads to external experts. This reduces confusion and ensures effective SAP project governance.
- Strategic Focus: Avoid getting bogged down in operational details. Keep the committee focused on SAP project leadership, high-level decisions, and milestones.
- Regular and Structured Communication: Schedule consistent, focused meetings. Use SAP project management tools to provide real-time updates, ensuring the committee has accurate information for decision-making.
- Engage the Right Stakeholders: Ensure that the committee includes key decision-makers who are empowered to make timely decisions. Include department heads, senior executives, and external experts where necessary to maintain stakeholder engagement SAP.
- Risk Management at the Forefront: Use SAP risk management tools to address potential roadblocks before they become critical. Proactively managing risk will lead to fewer surprises and smoother project execution.
These learnings underscore the importance of Steering Committee roles SAP in driving both strategic direction and day-to-day project alignment. By following these best practices, your Steering Committee can ensure smoother SAP implementations, better decision-making, and ultimately, successful project outcomes.
Tools to Support Steering Committees in SAP Projects
1. Using SAP Tools Like Solution Manager for Real-Time Reporting
SAP Solution Manager is a powerful tool designed to provide real-time insights into project progress, making it invaluable for Steering Committees.
How it Helps:
- Provides real-time dashboards displaying SAP project success metrics, such as milestone progress, defect resolution rates, and resource utilization.
- Automates reporting, saving time and ensuring accuracy in decision-making.
- Tracks critical risks and their mitigation progress, enabling proactive oversight.
Example: In a logistics SAP implementation, the Steering Committee used Solution Manager to monitor testing phases. Real-time defect resolution rates helped them decide when to approve the transition to the next phase, ensuring readiness without delays.
2. Communication Platforms to Streamline Collaboration
Efficient communication between Steering Committee members and project teams is crucial. Tools like Microsoft Teams, Slack, or Zoom enhance collaboration by enabling seamless discussions and updates.
How it Helps:
- Facilitates instant communication for urgent decisions.
- Supports document sharing, ensuring all members have access to updated SAP project management tools and reports.
- Enables virtual meetings for members who are remote or unavailable on-site.
Example: During a global SAP rollout for a retail chain, the Steering Committee used Microsoft Teams for virtual bi-weekly updates, ensuring consistent engagement despite different time zones.
3. Project Management Software to Track Decisions and Follow-Ups
Project management tools like Jira, Asana, or Trello help Steering Committees track decisions, actions, and follow-ups in a transparent, organized manner.
How it Helps:
- Logs all committee decisions with assigned owners and deadlines, ensuring accountability.
- Tracks the status of critical tasks linked to SAP project milestones and follow-ups.
- Provides a centralized view of progress, reducing dependency on manual updates.
Example: In a manufacturing SAP project, the Steering Committee used Jira to track their action items, ensuring key decisions on system configurations were implemented within deadlines.
Integrating These Tools for Maximum Impact
Combining tools like SAP Solution Manager for real-time tracking, communication platforms for streamlined updates, and project management software for accountability ensures that Steering Committees are well-equipped to manage SAP project governance effectively. These tools not only enhance collaboration but also empower committees to make informed, timely decisions that keep projects on track.
What a Steering Committee Should Avoid in SAP Projects
Even the most well-intentioned Steering Committees can make costly mistakes that derail an SAP project. Avoid these common pitfalls to keep your project on track:
1. Don’t Micromanage
The Steering Committee’s role is to provide strategic oversight, not to get involved in day-to-day tasks. Micromanaging distracts from high-level priorities and undermines the project management team.
Example: During the Realize phase of an SAP Activate project, one Steering Committee insisted on reviewing every testing scenario. This created delays, frustrated the project team, and shifted focus away from broader risks. Instead, the committee should focus on whether testing results align with strategic goals.
Actionable Tip: Trust your project managers to handle the operational details. Focus on approving milestones, resolving escalations, and aligning the project with business objectives.
2. Don’t Delay Decisions
Timely decisions are critical in SAP projects. Prolonged debates or deferred decisions can cause bottlenecks, leading to missed deadlines and increased costs.
Example: A Steering Committee delayed approving additional resources for a critical data migration issue, which resulted in a three-month delay in go-live. By the time they acted, the problem had snowballed.
Actionable Tip: Use tools like SAP Solution Manager to access real-time data and simplify decision-making. Stick to scheduled meetings and ensure decisions are made within a defined timeframe.
3. Don’t Ignore Red Flags
Overlooking risks or assuming problems will resolve themselves is one of the most damaging mistakes a Steering Committee can make. Small issues often escalate into significant challenges when ignored.
Example: In a manufacturing SAP project, early signs of integration challenges with legacy systems were dismissed. The lack of early intervention caused system failures during testing, delaying the project by weeks.
Actionable Tip: Proactively address risks as soon as they are identified. Regularly review risk registers and ensure there’s a clear mitigation plan for each flagged issue.
4. Don’t Lose Strategic Focus
Steering Committees should maintain a high-level perspective. Diving too deep into operational details can cause them to lose sight of the project’s broader goals.
Example: In a retail SAP implementation, the Steering Committee spent hours debating non-critical system configurations while neglecting the overall project timeline. This lack of focus led to rushed decision-making in critical areas.
Actionable Tip: Revisit the strategic objectives at every meeting to ensure discussions align with the project’s priorities and deliverables.
By steering clear of these pitfalls, Steering Committees can empower their teams, resolve challenges efficiently, and ensure the SAP project remains aligned with its strategic goals. Avoiding these missteps is just as important as following best practices!
Other articles to support your ERP Implementation Team
In Summary...
An effective Steering Committee is the cornerstone of a successful SAP project. From setting strategic direction to resolving challenges, this group ensures the project stays aligned with business goals and delivers tangible value. By adopting the strategies and best practices outlined in this guide, you can create a Steering Committee that not only drives success but also fosters collaboration and accountability at every stage.
I’d love to hear your thoughts and experiences. What has worked for your Steering Committees? What challenges have you faced, and how did you overcome them? Your feedback and stories can inspire and help others navigating similar projects.
If you have any questions or want to share your journey, feel free to reach out. Together, we can ensure every SAP project benefits from strong governance and a well-functioning Steering Committee. Let’s connect and learn from each other!
Frequently Asked Questions
1. What is the role of a steering committee?
A steering committee plays a pivotal role in ensuring the success of an SAP project by providing strategic oversight and guidance. It ensures the project aligns with the organization’s goals and delivers value. The committee is responsible for making high-level decisions on scope, budget, and timelines, while also resolving critical issues that arise during the implementation.
Responsibilities:
- Scope Decisions: Define and approve the project’s scope to ensure it meets business needs.
- Budget Oversight: Monitor expenditures and approve adjustments when necessary.
- Timelines: Ensure project milestones are met and address delays promptly.
- Risk Management: Identify and mitigate project risks that could impact success.
Example:
During an SAP S/4HANA implementation for a manufacturing company, a steering committee identified a regulatory compliance gap. To address this, they approved changes to the project scope to include a module for compliance reporting. This decision required reallocating funds from less critical areas and adjusting the timeline. The steering committee’s intervention ensured the project not only met operational needs but also adhered to legal requirements.
By maintaining a high-level focus, the steering committee ensures the project delivers long-term value, mitigates risks, and meets the organization’s strategic objectives.
2. Who are the members of the steering committee?
The steering committee includes key stakeholders who provide strategic guidance and ensure the project meets its objectives. Each member brings specific expertise to address different aspects of the SAP project.
Key Members:
- Project Sponsor: Provides executive oversight, ensuring the project aligns with business goals and secures necessary resources.
- Department Heads: Represent their areas (e.g., finance, HR, supply chain) to ensure the system meets operational needs.
- IT Leads: Oversee technical aspects, ensuring system configurations, integrations, and infrastructure are in place.
- External Consultants: Bring specialized SAP knowledge to guide decisions and address complex challenges.
Example:
During an SAP rollout for a logistics company, the finance department head participated in the steering committee to ensure the system supported real-time financial reporting. Meanwhile, the IT lead monitored technical readiness, including database migration and system integration. When the project team faced issues with aligning the new system with tax compliance requirements, the external SAP consultant provided guidance to resolve the challenge effectively.
By involving diverse stakeholders, the steering committee ensures every aspect of the project is considered, from strategic alignment to technical execution, leading to a more robust and successful implementation.
3. What is the difference between a committee and a steering committee?
A general committee addresses broad organizational topics and long-term strategies, often covering multiple areas of interest. In contrast, a steering committee has a focused mandate to guide specific projects, such as an SAP implementation. The steering committee’s primary role is to provide oversight, make high-level decisions, and ensure the project aligns with organizational goals.
Key Differences:
- Scope: A general committee focuses on broader organizational matters, while a steering committee is project-specific.
- Decision-Making: Steering committees have authority to approve changes in project scope, budget, and timelines.
- Members: Steering committees often include project-specific stakeholders, such as sponsors, department heads, and technical leads.
Example:
A general committee at a retail company may discuss organizational growth strategies, such as expanding into new markets. Meanwhile, the steering committee for an SAP S/4HANA implementation focuses on meeting milestones like system integration and data migration. If the implementation team encounters a delay in testing, the steering committee steps in to approve timeline adjustments and allocate additional resources, ensuring the project stays on track.
This focused approach allows steering committees to address project-specific challenges effectively, enabling smoother execution and better alignment with organizational objectives.
4. What is a PMO steering committee?
A PMO (Project Management Office) steering committee ensures effective governance of projects by providing oversight and strategic guidance. It focuses on aligning project management practices with organizational goals, ensuring consistency across projects, and resolving escalated issues. The committee also oversees project frameworks, manages resource allocation, and monitors compliance with methodologies.
Responsibilities:
- Ensure adherence to project management standards, such as SAP Activate.
- Allocate resources across concurrent projects.
- Address and resolve escalated issues impacting project timelines or budgets.
Example:
In an SAP rollout for a multinational corporation, the PMO steering committee ensured all teams followed the SAP Activate methodology. When resource conflicts arose between the finance and logistics modules, the committee prioritized resource allocation to critical areas and adjusted timelines to prevent delays. They also provided support by reviewing project risks and approving mitigation plans to maintain project momentum.
By standardizing practices and addressing strategic challenges, the PMO steering committee helps ensure that SAP implementations and other projects deliver consistent and successful outcomes.
5. What are the responsibilities of a steering committee?
A steering committee plays a vital role in the success of an SAP project by providing strategic oversight and ensuring alignment with organizational objectives. Its key responsibilities include:
Defining Project Goals: Establish clear objectives to guide the project and align it with business priorities.
Monitoring Progress: Track milestones, deliverables, and overall project health to ensure timelines are met.
Resolving Escalations: Address critical issues or delays raised by the project team, making timely decisions to keep the project on track.
Approving Budget Adjustments: Review and approve changes to the budget as necessary to accommodate project demands.
Ensuring Compliance: Verify that the project adheres to organizational policies, regulatory requirements, and quality standards.
Example:
In an SAP implementation for a retail company, the steering committee faced delays in data migration due to incomplete legacy data. To resolve the issue, they approved reallocating resources to the data migration team and hired external vendor support. This intervention minimized the delay and ensured the project remained aligned with its timeline.
By fulfilling these responsibilities, the steering committee ensures the project is well-governed, efficient, and aligned with business objectives.
6. What are five functions of a steering committee?
A steering committee ensures the success of an SAP project through five critical functions:
Strategic Oversight: Ensures the project aligns with business goals and delivers value.
- Example: Validating that an SAP rollout supports long-term business objectives like real-time financial reporting.
Budget Management: Reviews and approves expenditures to ensure efficient resource allocation.
- Example: Approving additional funding for unexpected licensing costs during implementation.
Risk Management: Identifies potential risks and ensures mitigation strategies are in place.
- Example: Reallocating resources to address delays in system integration.
Decision-Making: Resolves conflicts and approves significant changes to scope, timeline, or budget.
- Example: Deciding to postpone deployment to accommodate additional testing.
Progress Monitoring: Tracks milestones and ensures deliverables meet quality standards.
- Example: Ensuring that user acceptance testing is completed before the go-live phase.
By performing these functions, the steering committee provides strategic guidance and ensures the SAP project stays on track, mitigating risks and meeting organizational goals.
7. How are steering committee meetings structured?
Steering committee meetings are organized to ensure productive discussions and effective decision-making. They follow a structured agenda to maintain focus and address critical aspects of the project:
Review Project Status: Begin by providing updates on milestones, deliverables, and overall progress.
- Example: Discuss the completion of system configuration and readiness for testing.
Discuss Escalated Issues: Address unresolved challenges that require higher-level intervention.
- Example: Review delays in data migration and decide on resource reallocation to resolve them.
Approve Key Decisions: Make strategic calls on scope, budget, or timeline adjustments.
- Example: Approve extending the timeline to include additional training for end-users.
Evaluate Risk Management Plans: Review current risks and proposed mitigation strategies.
- Example: Evaluate backup strategies for critical data during the go-live phase.
By following this structure, steering committee meetings ensure alignment across teams, resolve key challenges, and maintain the project’s momentum.
8. What is the role of a steering committee in project management?
In project management, a steering committee provides strategic guidance and ensures the project aligns with organizational objectives. It oversees progress, maintains budgets, and ensures timelines are met. The committee also approves significant changes to scope or deliverables and resolves conflicts that may arise during execution.
Key Responsibilities:
- Align project goals with business priorities.
- Monitor budget utilization and timelines.
- Make high-level decisions on critical issues.
- Address and mitigate risks.
Example:
During an SAP implementation, the steering committee approved integrating a new CRM system when evolving business needs required seamless customer data flow. This decision ensured the project continued to support organizational goals and addressed new requirements without delaying the overall timeline.
By offering oversight and direction, the steering committee ensures projects stay focused, on track, and aligned with strategic goals.
9. What is the structure of a steering committee?
A steering committee has a defined structure to ensure effective decision-making and oversight. Each role within the committee contributes to its functionality and success:
Chairperson: Leads meetings, sets the agenda, and facilitates discussions.
- Example: The chairperson ensures meetings stay focused on resolving escalated issues during an SAP project.
Members: Key stakeholders, including sponsors, department heads, and IT leads, provide insights and expertise relevant to their areas.
- Example: An SAP steering committee might include the finance lead to oversee budgeting and a logistics head to address supply chain requirements.
Secretary: Records meeting minutes, tracks action items, and ensures follow-ups on decisions.
- Example: The secretary documents a decision to allocate additional resources for user training.
This structure ensures that the committee effectively addresses cross-functional requirements, resolves challenges, and provides clear direction for the project.
10. What should be included in a steering committee agenda?
A steering committee agenda is structured to facilitate productive discussions and efficient decision-making. It ensures all critical areas of the project are addressed.
Status Updates: Provide a summary of progress on key deliverables and milestones.
- Example: Updates on the completion of data migration or system testing during an SAP implementation.
Escalated Issues: Discuss unresolved challenges and present proposed solutions for approval.
- Example: Address delays in user acceptance testing and approve additional resources to resolve them.
Financial Review: Assess the budget, monitor expenditures, and approve necessary adjustments.
- Example: Approve additional funds for extended vendor support during integration testing.
Risk Management: Evaluate current risks and review mitigation strategies.
- Example: Discuss contingency plans for unexpected downtime during go-live.
This agenda keeps the committee focused, enabling timely decisions that drive project success.
AI Tools to Support Your SAP Implementation
Take the stress out of your SAP implementation with AI tools that work smarter, not harder. These tools help with everything—from planning and migrating data to setting up the system and keeping things running smoothly after go-live. They automate repetitive tasks, give you clear insights, and make sure everything connects the way it should. If you want to save time, reduce mistakes, and get your SAP system working for you faster, these AI tools are here to help every step of the way.
8 Responses