Oregon SAP project wracked by leadership woes

09.11.2010
An SAP implementation conducted by the city government of Portland, Oregon, went badly awry due to planning and project leadership problems, resulting in skyrocketing costs and a protracted time line, according to a report released Tuesday by the city's auditor.

The project to replace Portland's existing software with SAP started with a planning phase in 2004 and was originally budgeted at US$14 million, . But while the project has now achieved its primary goal, the implementation ended up costing more than $47 million and took longer than 30 months, instead of an expected 14.

That tab does not include other costs, such as payroll and benefits for many full- and part-time city workers who participated in the project.

SAP and its software did not come under fire in the report.

"The issues that have appeared pre-dated SAP's involvement in this project," said SAP spokesman Andy Kendzie. "To my knowledge, the project is under control and moving forward. They are a very valued customer."

Indeed, the relationship between SAP and Portland appears sound. City officials participated in an on the project, and also put out a