Case Study: Poor Project Habits and Lack of Discipline in a CTRM Software Selection Project

Lessons Learned: Why Respecting Your CTRM Advisory Consultant is Crucial for a Successful Project

Commodity trading houses often rely on their advisory consultants to assist them with the selection and implementation of CTRM software. However, not all clients respect their consultant’s expertise and best practices, which can lead to negative outcomes.

We have an in-flight Program of Work with an APAC client that has engaged our services to assist with their new CTRM software selection project. Despite our best efforts to provide guidance and best practice recommendations, the client has not listened and fell into bad project habits and poor discipline.

The Case Study

A large commodity trading house, let’s call them “XYZ Commodities”, recently engaged a specialist advisory consultant to assist with their new CTRM software selection project. The project is of high importance to the organisation, as it is aimed at improving the company’s risk management, operational efficiency and increasing profitability. Unfortunately, the project is off to a rocky start due to old ways of working, bad project habits and poor discipline, which is hampering progress and causing frustration on all sides.

The consultant team who has years of experience in CTRM software selection and implementation has noticed several concerning patterns emerging. The client project team is not listening to best practice advice, and they are not showing the consultant the right levels of respect, which is leading to a lack of collaboration and communication.

One of the major problems is that the client project team is not following the project management methodology that was agreed upon at the outset of the project. The project team is not adhering to timelines and deadlines, and they are not providing the necessary feedback and information in a timely manner. This is causing significant delays and rework, as the consultant is having to continuously chase up information and responses from the client.

Another issue is that the client project team is not taking advantage of the specialist skills and knowledge of the consultant. The consultant has years of experience in CTRM software selection and implementation, and they are there to provide guidance, advice and support. However, the client project team is not engaging with the consultant in a collaborative way, and they are not taking the consultant’s advice on board. This is leading to a lack of progress, and the project is not moving forward as it should.

Additionally, the client project team is not adequately resourcing the project. The team members are not dedicating enough time to the project, and they are not bringing the necessary skills and expertise to the table. This is putting an unnecessary burden on the consultant, who is having to fill the gaps and provide additional resources to keep the project moving forward.

The lack of cooperation & collaboration makes it challenging to conduct a proper as-is study of the current processes, and as a result, the analysis of the findings is suboptimal. The client did not fully engage with us during the process, and they failed to show a commitment to the project.

Moreover, the client did not prioritise the development of future state processes, which is crucial to ensure the success of a CTRM software selection project. Instead, they insisted on the immediate development of detailed requirements, which led to inefficiencies and wasted resources.

As the project progressed, the client continued to ignore our best practice recommendations, leading to a further delay in the project’s timeline. They also failed to provide us with regular project status updates, which hindered our ability to make informed decisions and adjust the project plan accordingly

In order to turn the project around and foster a positive outcome, there were several changes that the client needed to implement. Firstly, the client needed to adhere to the project management methodology that was agreed upon at the outset of the project. This included adhering to timelines and deadlines and providing the necessary feedback and information in a timely manner.

The client needed to re-engage in a more collaborative way and take advantage of their advisor’s specialist skills and knowledge. This meant listening to the advice, taking it on board, and working together. To be continued…

This reset is still a work in progress, we will let you know how it goes with an update in a month or so.

In conclusion, our experience with this client taught us that respecting the advisory consultant’s expertise and following best practices is crucial to ensure the success of a CTRM software selection project. Clients should provide their consultants with the necessary documentation, access to systems, and resources needed to complete the project successfully. They should prioritise the development of future state processes and follow a structured approach to requirements development. Finally, regular project status updates and communication with the consultant are critical to keeping the project on track.

We recommend that commodity trading houses establish clear expectations and communication channels with their advisory consultants from the outset of the project. A clear understanding of roles, responsibilities, and deliverables will foster a positive working relationship and lead to a successful outcome for all parties involved.