D365 Contractor

5 Reasons Why D365 Failure is YOUR Fault

April 22, 2025
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By Ryan Carolan

✅ D365 Contractor Recruiter | Adoption Evangelist | Ironman Retiree

D365 implementations can feel overwhelming. You start with big ambitions- a system that will streamline operations, improve reporting, and drive growth– only to end up in frustration, delays, and unexpected challenges.

When this happens, the first (easiest) reaction is: “Our Microsoft partner messed this up!”

But while D365 partners play a crucial role, they are not ultimately the ones running their business with this new system. You are.

The truth is, some challenges can only be solved by getting your own ducks in a row.

So instead of focusing on blame, let’s focus on ownership– because understanding what went wrong is the first step to getting it right next time.

1️⃣ Your Business Requirements Were a Moving Target 1️

Your D365 partner isn’t a mind reader.

If your business starts the project with unclear requirements, vague objectives, and changing priorities, your D365 partner is guessing at best and chasing a moving target at worst.

If you don’t know what success looks like, how can they deliver it?

What You Should Be Doing (Not Your Partner):

✔️ Map your business processes before implementation- don’t wait for your D365 partner to “figure it out” for you.

✔️ Identify and align key stakeholders across finance, sales, operations, and IT before project kickoff.

✔️ Define must-haves vs. nice-to-haves– D365 partners can’t read minds, and they can’t prioritize what your business really needs.

FACT: Your D365 partner can configure the system, but they can’t define your business strategy. That’s on you.

2️⃣ Your Leadership Team Was Watching from the Sidelines 2️

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D365 isn’t an IT project: it’s a business transformation.

And yet, in many failed implementations, leadership treats it like a back-office initiative, offloading the responsibility to the Partner and checking out.

When leadership isn’t engaged, employees don’t take the project seriously. And when roadblocks appear, no one has the authority to push through them.

What You Should Be Doing (Not Your Partner):

✔️ Deicide on ONE executive sponsor from day one: ideally this is the CFO.

✔️ Have leaders actively participate in meetings and adoption efforts.

✔️ Communicate the business impact of D365- so employees see why it matters.

FACT: Your D365 partner can build the system, but they can’t force your leaders to care. That’s on you.

3️⃣ You Gave Your Team a New System: But No Training 3️

D365 isn’t a plug-and-play system—it requires training, practice, and ongoing support.

If employees aren’t properly trained, they’ll struggle, resist the system, and blame the software (or the partner).

No training = No adoption = D365 failure.

What You Should Be Doing (Not Your Partner):

✔️ Plan a structured training program—don’t expect people to just “pick it up.”

✔️ Run hands-on workshops instead of dumping a 100-page manual on employees.

✔️ Assign D365 champions inside the company—internal experts who can guide and support others.

✔️ Make training part of onboarding—so new hires don’t repeat the same mistakes.

FACT: The customization delivered by your Partner probably works flawlessly, but if Bob doesn’t understand how it helps him ship more product out of the Warehouse. That’s on you.

4️⃣ Your Data Was a Mess Before You Even Started 4️

D365 is only as good as the data you put into it.

If your old system is full of duplicates, missing fields, and outdated records, guess what? Your new D365 will be too.

Your partner doesn’t own your data– they just migrate it.

What You Should Be Doing (Not Your Partner):

✔️ Start data cleanup at least 6 months before migration: don’t wait until go-live.

✔️ Deduplicate and standardize data formats: inconsistent data leads to errors.

✔️ Appoint internal data owners: people responsible for maintaining data quality long-term.

✔️ Audit reports in the old system: if they’re wrong before D365, they’ll still be wrong after.

FACT: Your D365 partner can move your data, but they can’t magically clean it up for you. That’s on you.

5️⃣  YOU Didn’t Get the Right People On The Bus 5️

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If you don’t have the right internal expertise, your D365 project is set up to struggle.

Here’s the deal: Your partner is not going to “own” your D365 system for you.

They will implement it, guide you, and support you- but at the end of the day, they move to the next project. You must have someone inside your company who is an expert in key areas.

If you’re relying entirely on your D365 partner to run the show, you’re building a system without anyone who actually understands how to use it long-term.

What You Should Be Doing (Not Your Partner):

✔️ Hire or upskill a D365 expert internally– before the project starts, not after.

✔️ Make sure you have a consistent project team– if key people keep leaving, expect chaos.

✔️ Have at least one person inside the business who can challenge decisions, validate requirements, and support users.

✔️ Don’t assume IT alone can manage D365– this is a unique business system, that needs unique skills to get the most from it.

FACT: D365 is your system, not the partner’s– if you don’t have the right people in place to manage it, it will fail. That’s not on them.

 Final Thoughts: Shifting from Blame to Ownership

If your ERP project failed, before you blame the partner, ask yourself:

✔️ Did we define our business requirements clearly?

✔️ Was leadership engaged and driving the project forward?

✔️ Did we train our team to actually use the system?

✔️ Did we ensure our data was clean before migration?

✔️ Did we hire or train internal D365 experts to own the system?

If any of these are familiar, the problem wasn’t just your partner.

Changing to a new one might help.

But it’s better to be introspective first.

PS- if you want help with number 5: get in touch with me to talk about accessing our community of vetted D365 Contractors.

#d365 #ERP #ProjectOwnership #ImplementationSuccess #DigitalTransformation #TakeOwnership