Earlier this month, Birmingham City Council members gathered to tackle the challenges surrounding their Oracle enterprise resource planning (ERP) system. During an extraordinary meeting on March 11, councillors expressed concerns after a Grant Thornton report revealed serious issues with the system’s implementation. The council is committed to reimplementing the system, set to go live in April 2026, but members wanted assurances this deadline wouldn’t be pushed back.
Councillor Albert Bore reminded everyone about the council’s previous 10-year partnership with Capita for an SAP ERP system, which wrapped up in 2018 when they decided to manage IT in-house and switch to the Oracle system. He characterized what followed as a “predictable debacle.”
Councillor Meiron Jenkins, who has spent 40 years in ERP systems, didn’t hold back, stating, “This really is a one-off. It is truly remarkable what a complete mess you made of implementing it.” Jenkins pointed to serious governance issues highlighted in the Grant Thornton report, including a lack of accountability among senior executives and a culture that discouraged raising concerns. He noted that when senior managers aren’t deeply engaged, the risk of failure skyrockets.
Reflecting on a scrutiny inquiry he participated in back in 2020, Jenkins voiced frustration that his recommendations went unheeded, which could have prevented many issues. He had even shared an article about notorious ERP disasters to illustrate his point.
Some councillors questioned the role of external auditors in the oversight of the implementation. One councillor raised serious doubts about whether senior executives had been upfront with the auditors, asking for clarification on the audit process as a whole. Councillor Lee Marsham noted, “We’ve all been misled,” emphasizing that their external auditors at Grant Thornton had recently admitted they weren’t given the complete picture earlier.
Councillor Paul Tilsey echoed Marsham’s concerns about the auditors, criticizing Grant Thornton for not responding to requests from their team. He argued that more proactive measures could have been taken to address the situation.
Six months after the external auditor’s report in March 2023, a new report from Grant Thornton called for a clear target date for the completion of the Oracle project’s early phases. They suggested this phase should wrap up by November 30, 2023, also stressing the need for senior staff to manage the workload alongside other responsibilities.
The latest findings pushed for additional resources to ensure the project’s success, suggesting that the council bolster its internal IT capacity and capability. However, a Grant Thornton spokesperson clarified their stance, asserting that the responsibility of implementing financial systems lies with the council, not the auditors.
During the meeting, Councillor Jaime Scott revealed that the income management system, crucial for the council’s financial tracking, is falling behind schedule. Grant Thornton’s auditor, Mark Stocks, noted that the council had to delay going live with the new system until they resolved workarounds for the existing cash management. Scott mentioned optimism from the Oracle project lead about getting the system ready but acknowledged the need for constant monitoring to prevent further delays, especially with the target go-live date looming closer.