Profitability & Cost Management Shared Interest Group

Executive Summary

Profitability analytics, as part of Enterprise Performance Management (EPM) implementations, frequently fail due to human factors rather than technical issues. This article introduces an improved framework for transforming EPM projects through strategic stakeholder analysis, supported by real-world case studies and actionable insights. Based on lessons learned from successful implementations, we explain how leading organizations incorporate advanced stakeholder engagement practices to achieve faster implementation times, higher user adoption rates, and sustainable business impact.

The Human Factor in Digital Transformation

In 2023, Maria Rodriguez, CFO of a leading manufacturing company, faced a familiar challenge. Her organization had invested millions in an EPM system, yet six months into the implementation, user adoption remained low, and the expected benefits seemed elusive.

"We had the best technology money could buy," Rodriguez reflected, "but we were missing something fundamental." That missing piece, as she discovered, was not technical but human. A systematic stakeholder analysis approach catalyzed her organization’s transformation, turning the struggling initiative into a strategic success.

Why Stakeholder Analysis Matters

Studies consistently show that over 60% of technological implementations fail to meet business objectives, often due to insufficient stakeholder engagement. Yet, organizations frequently approach EPM as a technical exercise, sidelining the human dimension. This mindset must shift to ensure the system delivers strategic and operational value.

Consider the case of INTEGRIS Health, Oklahoma’s largest nonprofit health system. Initially focusing on technical specifications, they encountered resistance and setbacks. However, integrating stakeholder analysis into the process led to streamlined planning, improved cost efficiency, and stakeholder alignment—achieving outcomes that exceeded expectations.

Enhanced Framework: The Four Pillars of Success

1. Strategic Stakeholder Definition: Beyond Traditional Mapping

Traditional stakeholder analysis often falls short by treating mapping as a static, one-time exercise. Instead, organizations should adopt dynamic, value-driven frameworks.

Key Steps:

• Value Chain Mapping: Identify stakeholders across the organization’s value chain.

• Influence Network Analysis: Develop detailed maps of stakeholder interactions and influence.

• Dynamic Reassessment: Implement quarterly reviews to adapt to evolving needs.

• Value Alignment: Customize specific value propositions for each stakeholder group.

Practical Example: When Global Foods adopted this approach, they identified middle managers as pivotal influencers. Elevating their role accelerated the rollout by 60%, achieving better alignment and engagement.

Table 1: Example of Stakeholder Mapping

2. Process-Stakeholder Integration: Creating Symbiotic Relationships

Aligning processes with stakeholder needs ensures that the EPM system addresses organizational priorities effectively.

Implementation Framework:

• Process Mapping: Document existing workflows and stakeholder touchpoints.

• Value Stream Analysis: Evaluate how stakeholders create and consume value.

• Integration Design: Develop workflows that align EPM capabilities with stakeholder needs.

Practical Example: In a retail chain’s EPM project, stakeholder analysis identified the need for integrated dashboards combining profitability, costs, and operational data. This approach reduced operational costs by 15% and improved decision-making consistency.

Table 2: Needs vs. Capabilities Alignment

3. Impact Analysis: Measuring What Truly Matters

Measuring stakeholder engagement and system effectiveness ensures alignment with strategic goals and provides actionable insights.

The Impact Measurement Framework:

• Leading Indicators: Engagement rates, training completion metrics.

• Lagging Indicators: Cost savings, decision-making improvements.

• Value Metrics: Operational efficiency, strategic goal alignment.

Suggested Tools: Use OKRs (Objectives and Key Results) or earned value metrics to track progress. For example, a pharmaceutical company’s EPM implementation exceeded its goal of reducing report generation times by 25%, achieving a 30% reduction.

Table 3: Measuring Impact of Stakeholder Analysis

4. Sustainable Value Creation: Building Long-Term Impact

Successful EPM implementation requires a focus on sustainability—ensuring the system remains relevant and continues to deliver value over time.

Key Strategies:

• Start Small, Think Big: Pilot initiatives with clear goals and scalable outcomes.

• Support Networks: Establish communication channels and ongoing training.

• Continuous Feedback: Use real-time tools like Power BI to monitor performance.

• Knowledge Sharing: Document best practices and build internal capabilities.

Practical Example: Metalsa’s EPM project prioritized creating a unified platform for planning and profitability. By continuously engaging with stakeholders, they improved forecast accuracy by 20% and reduced analysis time by 20%.

Conclusion: From Technology to Strategic Victory

Stakeholder analysis is not just a project management tool but the cornerstone of successful EPM implementation. Organizations can achieve faster adoption, sustainable value, and transformational impact by aligning technical capabilities with stakeholder needs.

The question for leaders is no longer whether to invest in stakeholder analysis but how to make it the centerpiece of their EPM strategy.

About the Author

Pedro San Martín is a Profitability & Cost Management Shared Interest Group member and formerly President of the Institute of Management Accounting Spain Chapter. As Principal, he is a Subject Matter Expert at Asher PwC Interaméricas, bridging technical implementations with strategic value creation. With over 25 years of experience, he has guided global organizations to optimize planning, costing, and profitability processes through innovative EPM solutions.

References

1. Project Management Institute. (2019). Measuring What Matters. Retrieved from https://www.pmi.org/learning/library/es-medir-lo-importante-13635

2. PwC. (n.d.). Case Study: Metalsa. Retrieved from https://www.pwc.com/mx/es/soluciones/oracle/metalsa-transformacion-digital.html

3. PwC. (n.d.). Case Study: INTEGRIS Health. Retrieved from https://www.pwc.com/us/en/library/case-studies/integris-health-services-erp-transformation.html

4. Espacio ERP. (n.d.). ERP Implementation: Lessons from Nike Case. Retrieved from https://espacioerp.com/implementacion-erp/

5. Academia.edu. (n.d.). Failed ERP Implementation: Case Study of MillerCoors v. HCL. Retrieved from https://www.academia.edu/51298665/Failed_ERP_Implementation_Case_Study_of_MillerCoors_v_HCL