Why is it a challenge to deliver ERP-Wide Solutions in Local Government?

Across Australia, local government organisations are navigating a significant shift in their Enterprise Resource Planning (ERP) systems. Major players like Civica, TechnologyOne, and Infor are phasing out their on-premises solutions, urging councils to transition to cloud-based or Software as a Service (SaaS) offerings. This wave of change has sparked widespread ERP activity, with councils reassessing their strategies. New entrants like ReadyTech are gaining traction, and some councils are even exploring a “best-of-breed” approach. However, delivering enterprise-wide ERP solutions in local government is fraught with challenges. This article explores why ERP transformations are critical in this sector, the unique obstacles councils face, actionable steps to overcome them, and why PM-Partners is an ideal partner for success.

Why ERP is big in local government in Australia

The push towards cloud-based ERP systems is reshaping the local government landscape. With Civica, TechnologyOne, and Infor calling end-of-life on their legacy on-premises platforms, councils are being compelled to modernise. This shift aligns with broader digital transformation trends, promising greater efficiency, scalability, and accessibility. For local government, an ERP system is the backbone of operations, managing everything from rates and property services to waste collection and recreation facilities.

This transition has also opened the market to competition. ReadyTech is emerging as a contender, while some councils are considering best-of-breed solutions—combining specialised tools rather than relying on a single ERP vendor. The stakes are high: choosing the right ERP strategy is not just about technology but about ensuring councils can continue delivering essential services amidst tightening budgets and evolving community expectations. With so much at play, ERP projects have become a top priority for local government across Australia.

The challenges local government organisations face

Delivering an ERP-wide solution in local government is no small feat. Several entrenched challenges make these projects particularly complex:

1. Cost pressures:

Councils operate under tight budgets, funding a vast array of services—roads, libraries, aged care, pet licensing, and more. Every dollar spent on an ERP must compete with these priorities. Political cycles exacerbate this, as newly elected councillors often introduce new initiatives, diverting funds and focus from long-term projects like ERP implementations.

2. Resource constraints:

Business units in councils are stretched thin. Managers often double as subject matter experts, process owners, and day-to-day operators, leaving little capacity for ERP involvement. This creates key person dependencies, risking delays if critical staff are unavailable. Similarly, IT teams—responsible for a sprawling portfolio of applications (e.g., CCTV, public Wi-Fi, library systems)—lack the bandwidth to support ERP tasks like data migration, integration, and testing.

3. Lack of ERP experience:

Unlike industries that regularly refresh technology, many councils have relied on the same ERP systems for over 20 years. Documentation from these legacy systems is often absent, and institutional knowledge has faded. This gap complicates migrations and leaves councils managing more technology than their budgets can sustain—a legacy of shadow IT and rapid digitalisation.

4. Process rigidity:

Many local government employees have spent their careers within the sector, familiar only with existing processes. Traditional ERP consulting questions like “What are your processes?” often result in replicating outdated workflows rather than optimising them. The same applies to reporting—councils struggle to articulate future needs beyond what they currently produce.

These challenges—cost, resources, experience, and entrenched practices—create a perfect storm, making ERP transformation a daunting prospect for local government.

What local government organisations can do to address these issues

Success in ERP projects requires a proactive, strategic approach. Here are six practical steps councils can take:

1. Invest in detailed planning:

ERP projects are well-trodden territory, with known risks and opportunities. Rushing in with a project manager and minimal preparation is a common pitfall. Instead, councils should prioritise upfront planning—every dollar spent here can save three later. Tools like PM-Partners’ Detailed Execution Framework, which outlines over 700 activities, provide a roadmap to scope, plan, and execute effectively.

2. Challenge vendors:

Select vendors with deep local government expertise and pre-configured solutions. Serious players should offer out-of-the-box integrations (e.g., with the Australian Taxation Office or state planning departments) and documented business processes—not just technical configurations—that business users can easily grasp.

3. Simplify technology:

Use the ERP transition to rationalise the technology stack. Replace or decommission systems that overlap with ERP modules, even if the ERP’s functionality isn’t the market leader. The goal is to reduce integration complexity, licensing fees, and support costs—opting for “good enough” over “best-of-breed” where practical.

4. Streamline integration:

Avoid complex, code-heavy integrations. Modern tools like Zapier for simple tasks or Boomi for robust needs offer pre-built, “paint-by-numbers” solutions. The cost of updating legacy integrations may rival the switch to these platforms, making it a strategic investment.

5. Prioritise change management:

Customisation is costly and often unnecessary. Proactive change managers can demonstrate to users why vanilla or industry-standard templates suffice. Early engagement—explaining the “why” and “what’s in it for me”—builds buy-in and reduces resistance, keeping the project on track.

6. Engage for outcomes:

Procurement rules often push councils towards contractors paid by the hour, who require onboarding and lack aligned incentives. Instead, partner with specialists like PM-Partners, whose proven frameworks and outcome-focused approach deliver faster results, despite higher day rates, by leveraging pre-built methods and targeted expertise.

Why PM-Partners is a good partner for local councils

PM-Partners stands out as a trusted ally for local government ERP projects. Our expertise in project delivery and change management is backed by a track record of success across councils like Snowy Valley, Parramatta, Waverley, Edward River, and Gympie Regional. Having worked with over 100 local government entities in Australia, we understand the sector’s unique pressures and opportunities.

We’ve invested heavily in reducing ERP risk and cost through tools like our Detailed Execution Framework, tailored templates, and training materials. Unlike generic consultancies, our approach is pragmatic and pre-configured, designed to accelerate delivery without reinventing the wheel. Our specialist resources parachute in when needed, ensuring efficiency and focus on outcomes—not billable hours. Whether it’s navigating TechnologyOne’s SaaS transition, simplifying integrations, or driving user adoption, PM-Partners brings the experience and methodology to make ERP projects succeed.

Turning challenges into opportunities

ERP-wide transformations are a defining moment for local government in Australia. The shift to cloud-based systems offers councils a chance to modernise, but the road is paved with challenges—cost pressures, resource limitations, outdated processes, and inexperience. By embracing detailed planning, leveraging vendor expertise, simplifying technology, and prioritising change management, councils can overcome these hurdles. Partnering with PM-Partners amplifies this success, providing the tools, knowledge, and focus to deliver on time and within budget.

Local government doesn’t need to repeat the ERP mistakes of the past. With the right strategy and support, councils can turn this challenge into a catalyst for lasting efficiency and community value.