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RESOURCES

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RESOURCES

ERP resourcing, outstanding items, and billing (T&M and alternatives)

Executive summary

Clear guidance to manage ERP resource backlogs, track outstanding work, and run a transparent Time & Materials (T&M) billing model with alternatives (fixed price, retainer, outcome-based). Includes recommended controls, timesheet and invoicing practices, change control, and KPI reporting for predictable cost and delivery.

1. Resource types and status definitions

  • Functional Consultant — Requirements, configuration, UAT support.
  • Technical Consultant / Developer — Custom code, integrations, conversions.
  • Integration Engineer — Middleware, API builds, interface operations.
  • Basis / Platform Engineer — Environments, patches, performance tuning.
  • Support Analyst — Incident triage, runbook execution, hypercare.
  • Project Manager / PMO — Planning, status, stakeholder coordination.
  • Super-user / Business SME — Acceptance, testing, training, issue validation.
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Status tags to use on the tracker

  • Open — New request not started.
  • In Progress — Actively worked by assigned resource.
  • Blocked — Waiting on input, access, or third party.
  • In QA/UAT — Completed dev/config but pending validation.
  • Ready for Deploy — Signed off and scheduled for release.
  • Closed — Deployed and verified in production.

2. Managing outstanding work (operational controls)

  • Single source of truth — Maintain a backlog in one tool (JIRA, Azure DevOps, ServiceNow).
  • Triage board — Daily or weekly triage to prioritise: Severity; Business impact; Regulatory need; Effort estimate.
  • Work item template — Short description; Acceptance criteria; Estimated effort (hours); Owner; Dependencies; Risk.
  • SLA classifications — Critical, High, Medium, Low with target response/resolution (for example: Critical = immediate triage).
  • Weekly backlog report — New, In Progress, Blocked, Aging items (>30/60/90 days).
  • Capacity planning — Rolling 4-week resource commitment view with buffer for support spikes.
  • Escalation path — Named escalation owners and SLA breach triggers.

3. T&M billing model: structure and controls

  • Rate card — Published hourly or daily rates per resource type and seniority (e.g., Consultant, Senior Consultant, Lead).
  • Billing units — Hours (preferred) or half-days; minimum billing increment (e.g., 0.25 hour).
  • Timesheet policy — Daily entry, manager approval window (e.g., within 5 business days), timesheet comments mapping to work item IDs.
  • Estimate and burn reporting — For each ticket show original estimate, actual hours to date, remaining estimate.
  • Invoicing cadence — Monthly in arrears with line items grouped by project and resource type; include burn vs estimate summary.
  • Expense handling — Pre-approved expenses billed at cost with receipts; per diem only if agreed.
  • Dispute window — Client has X days (typical 10–15) to raise invoice disputes; undisputed amounts payable as invoiced.
  • Retainer / Minimum-commitment clause — Option to secure minimum hours per month at a discounted rate; unused hours roll over or are forfeited per agreement.

4. Change control and scope governance

  • Change request (CR) process — Any scope change must go via CR with impact: hours, cost, schedule, and risk.
  • CR quick-decision paths — Minor (< Y hours) auto-approved by PM; Major requires steering committee sign-off.
  • Estimate confidence band — Provide Low/Medium/High confidence and contingency factor for all estimates.
  • Approval SLAs — Turnaround timelines for CR approvals to avoid blocking work.
  • Freeze windows — Define config/code freeze periods around cutovers and month-end.

5. Reporting, transparency and KPIs

  • Monthly delivery dashboard — Burn (hours), committed vs actual, open items aging, critical incidents, and financials (invoiced vs forecast).
  • Key KPIs
    • Utilization — Billable hours / total capacity for each resource.
    • Burn rate vs estimate — Cumulative actual hours ÷ estimated hours.
    • Aging of outstanding items — Count and % >30/60/90 days.
    • Mean time to resolve (MTR) — Average hours to close incidents.
    • SLA compliance — % incidents meeting response/resolution SLA.
  • Access to records — Provide client-readable view of timesheets tied to work items for auditability.

6. Alternatives and hybrid commercial plays

  • Fixed price for defined scope — Best for well-scoped, low-ambiguity deliverables; include defined change process and buffer.
  • Retainer (pre-purchased hours) — Predictable monthly cost, priority handling, discount on rate card.
  • Outcome-based — Partial risk/reward tied to business KPIs (e.g., reduce close time by X days); combine with baseline T&M for delivery.
  • Blended rates / caps — Use blended day rates for mixed teams or monthly caps with overage at agreed uplift.

Final steps (practical)

  • Publish a rate card and timesheet policy to the client and include in statement of work.
  • Implement a backlog triage cadence and standardised work item template in the chosen tool.
  • Set up a monthly delivery dashboard and share with steering committee.
  • Offer a retainer option for predictable headroom and priority response.
  • Agree invoice format, dispute window, and acceptance evidence required per line item.