What Are Typical SAP Project or Program Manager Rates?
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Typical SAP Program and Project Manager rates run from 175 ($1,400.00 daily) dollars an hour to 285 ($2,280.00 daily) + expenses an hour plus incentives for successful project completions.
These rates should be considered baseline rates for a ‘Greenfield Implementation’.
These rates may be considerably higher in the following situations:
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- Specific Industry Expertise required. For instance, a SAP Project Manager with deep expertise in MRO (Maintenance Repair & Overhaul) will command significantly higher rates. Other specialized skills that may double the daily price include:
Retail
Petrochemical
Banking, Media
Transportation Management
Automotive, SAP REFX and others.
- Very large projects. Projects that are above $100,000,000.00 will typically be staffed by very highly experienced Project Manager(s) and rates will be substantially higher.
- Recovery Situations: Failed projects. Stalled projects. Other situations in which the PM’s reputation may be at risk will typically result in much higher rates.
- Science Fair Projects: SAP Projects where the solution is new, unproven, or is to be invented on-site, and thus, very unpredictable, will result in higher than standard rates.
- Part of another effort, i.e., Balanced Scorecard Implementation: When the SAP Project is part of a major strategically important project, such as a BSC implementation, the cost may run significantly higher, particularly if the need is for a SAP PM who is also BSC Certified.
Payback Period of the Project
In reality, the most important consideration, regardless of the cost of the SAP Program/Project Manager, is the payback period of the project. For instance, in mid-range SAP projects, running from the 20-100 Million USD range, with a duration of one year, the total SAP PM Cost will range from 308K to 501K annually plus about 100k in expenses, which is less than 2% of the cost at 20 million.
Profit and Loss Project Responsibility
Why so much? A SAP Project Manager is basically handed a massive budget with profit and loss responsibility. A SAP Implementation Team must be successfully assembled by the SAP Project Manager and a positive ROI achieved on what is typically a significant investment on the part of the customer.
Management Consulting Role
In effect, the SAP PM is the CEO of a company within a company, and as every project is unique, faces many challenges. In most instances, the SAP Project Manager is performing management consulting roles, i.e., providing business consulting services in order assure the success of the SAP project.
SAP Top Gun Program Manager Guide
We have developed a guide to what it takes to be a Top Gun SAP consultant which also covers being a SAP Top Gun SAP Program Manager. You can download by completing the form on the right and downloading it.