For councils and public sector agencies, the ERP is not just a finance system. It underpins rates, payroll, procurement, assets, property and the services the community relies on. When it works, nobody notices. When it does not, the consequences are public, expensive and slow to fix.
At Climb Business Consulting, we work as independent advisors to help public sector organisations plan, select and manage ERP systems with the governance and rigour their communities expect.
Why Public Sector ERP Is Different
Government organisations face pressures most businesses do not: strict procurement rules, audit and probity obligations, elected representatives and ratepayers watching closely, and sector-specific needs such as rating, property and regulatory functions. Many councils, particularly in regional Victoria, are running ageing on-premises systems connected to a patchwork of other applications, often supported by small internal teams.
The stakes are real. Queensland Health's payroll replacement began as a contract worth around $6.2 million and, according to the Commission of Inquiry that followed, ended up costing taxpayers around $1.2 billion. The lessons from that project still apply to every public sector system today.
Seven Best Practices for Government ERP
1. Start with outcomes, not features. Define what the organisation needs to achieve, such as faster month-end, better asset data or improved customer service, and build a business case around those outcomes before speaking to vendors.
2. Map your current state honestly. Document how processes really work today and every system that touches the ERP. Integration and data issues hidden in a fragmented ecosystem are among the most common causes of cost blowouts.
3. Get independent advice. Vendors and implementation partners bring valuable expertise, but they also have something to sell. An independent advisor helps define requirements, run a fair evaluation and challenge assumptions on behalf of the organisation.
4. Build governance that actually governs. Appoint an executive sponsor with real authority, a steering committee with clear decision rights, and regular reporting to the audit and risk committee. Governance should make decisions, not just receive updates.
5. Treat data as a project in its own right. Assign clear owners for each data set, start cleansing early and test migration repeatedly. Poor data is the fastest way to undermine trust in a new system.
6. Invest in people and change. Staff need time, training and support to adopt new ways of working. Backfill key roles so your best people can contribute to the project without the day job falling over.
7. Plan for life after go-live. Agree how benefits will be measured, who owns the system long term, how upgrades will be managed and how the system will be kept secure.
Getting Procurement Right
A well-run tender is the foundation of a successful ERP. Clear requirements, weighted evaluation criteria agreed upfront, scripted vendor demonstrations using your own scenarios, and reference checks with comparable organisations all reduce risk. Be wary of fixed prices that look too good to be true; the Queensland Health experience showed how quickly an optimistic contract can unravel.
Managing the ERP You Already Have
Not every organisation needs a new system. Many get far more value by improving how they manage their current one. A regular ERP health check covering version currency, licence use, support arrangements, security, integrations and user satisfaction can extend a system's life, reduce costs and build a clear roadmap for future investment.
Whether you are planning a replacement, preparing a tender or trying to get more from your current system, the principles are the same: clear outcomes, strong governance and independent oversight. If your organisation is considering its next ERP step, we would be happy to help. Get in touch for a complimentary strategy session.
