Identifying Lack of Human Capabilities in ERP Implementation

B.

When a project manager identifies a significant lack of human capabilities during the implementation phase of a central ERP system, the project sponsor should be immediately notified. In this scenario, the project sponsor has sent a request for an increase in the budget to the IT steering committee.

The IT steering committee is responsible for ensuring that the project is aligned with the organization's goals, objectives, and strategies, and that the project delivers value to the organization. Therefore, the committee's first action should be to assess the situation and determine the best course of action.

In this scenario, the lack of human capabilities could impact the project's success and the organization's ability to achieve the expected benefits from the ERP system. Therefore, the IT steering committee needs to consider the implications of the budget request and determine the appropriate action to take.

A. Require a revised business case - this option may be necessary if the budget request significantly deviates from the original business case. However, it may not be the first action the IT steering committee should take in this situation.

B. Approve the budget request - this option may be appropriate if the committee believes that the lack of human capabilities will significantly impact the project's success and that additional budget is necessary to address the issue.

C. Provide appropriate training - this option may be necessary to address the lack of human capabilities, but it may not be sufficient to solve the issue. It may be more appropriate to provide training in conjunction with other actions, such as hiring additional staff or outsourcing some tasks.

D. Refer back to the project sponsor for resolution - this option may not be the best course of action as the project sponsor has already requested an increase in the budget. Referring back to the sponsor may delay the resolution of the issue and negatively impact the project's success.

Therefore, the best option for the IT steering committee's first action in this scenario is likely to assess the situation, evaluate the budget request, and determine the appropriate action to take to address the lack of human capabilities. This may involve approving the budget request, providing training, and other actions as necessary to ensure the project's success.