Project Mediation: How to Prevent Costly Disruptions
Payroll software implementations are complex undertakings that impact the operational core of an organisation. Despite careful planning, many such projects are delayed, diluted, or derailed entirely. The points of failure are rarely caused by technology alone. Instead, issues often emerge from misalignment between client expectations and vendor delivery, internal miscommunication, or resistance to new ways of working.
When relationships between clients and vendors become strained during implementation, progress slows, trust erodes, and costs escalate. In these moments, third-party project mediation can offer a structured and impartial route to resolution. Services like those provided by TLG have proven to be highly effective in restoring communication, clarifying expectations, and guiding projects back toward successful delivery.
The Importance of Vendor Relationships in Payroll Implementations
In payroll, accuracy and timeliness are non-negotiable. The systems that support this function must be highly reliable, legally compliant, and capable of integrating with HR, finance, and time tracking platforms. As such, implementing a new payroll system is not simply a matter of data migration or user training. It involves substantial operational change.
The vendor relationship becomes a key part of this transformation. Ideally, the vendor acts as a partner who understands not only the software but also the business needs it supports. However, during the course of implementation, misalignments often emerge. These may stem from incomplete requirement gathering, overly optimistic sales processes, or misunderstandings about how the new system will function in practice.
In many instances, necessary stakeholders are not engaged until the later stages of the project. At that point, reporting structures, workflows, or business oversight requirements may be flagged as misaligned with the planned solution. Project teams may realise that what is being delivered is different from what was originally expected, or from how the business currently operates.
Such situations are not uncommon, especially when:
The client adds new requirements that were not part of the original scope
The vendor’s sales team made informal commitments that were not captured in the formal Statement of Work
Both parties had different assumptions about how the software would replicate or replace existing functionality
If unresolved, these differences can lead to project stagnation or cancellation. Costs increase as deadlines are missed and teams disengage. Vendor resources may be reassigned elsewhere. Internally, the payroll function may be left in limbo, forced to continue with legacy systems while facing growing pressure for modernisation.
When and Why to Involve a Mediator
Third-party mediation is not always the first step considered in resolving project difficulties. However, it can be the most effective way to regain control of a project that is at risk of failing. A mediator brings neutrality and clarity at a time when emotions and assumptions may be driving the discussion.
Mediators such as TLG’s consultants focus on restoring productive communication. We work to uncover the root causes of the dispute, separate facts from assumptions, and ensure that all voices are heard. Their goal is to help the client and vendor re-establish shared objectives and define a realistic path forward.
Some signs that mediation may be needed include:
Delays in the project timeline with no clear resolution strategy
Increasing number of change requests or undocumented scope shifts
Stakeholders raising concerns that were not captured in initial planning
A lack of responsiveness from the vendor or signs that the project has been deprioritised
Internal divisions within the client organisation over process ownership or system configuration
By engaging a mediator before the breakdown becomes irreparable, organisations can avoid extended delays, missed regulatory deadlines, and the costs of restarting with a new vendor.
A Case in Practice: Supporting a Midlands Manufacturing Business
TLG recently worked with a manufacturing company in the Midlands with just under 1,000 employees across two sites. The business had grown rapidly through a merger, but each site had retained its own HR and payroll systems. A project was launched to unify these functions using a single vendor solution for HR, Time, and Payroll.
Although the initial selection of the vendor went smoothly, the implementation process encountered several challenges. Each site had developed different ways of working, and leadership at each location wanted different reporting formats and levels of oversight. Agreement on a standardised approach could not be reached.
As delays accumulated, the vendor reduced engagement, assigning only a minimal support team to what was now seen as a dormant account. Client queries were answered slowly, eroding confidence. Internally, the project team faced growing resistance. Some employees viewed the new system as a threat to established routines. Others delayed decision-making in the hope that the project would be abandoned altogether.
At this point, TLG was brought in to mediate. Our consultants conducted interviews with stakeholders from both sites and facilitated joint workshops with the vendor. They identified miscommunications that had never been resolved, clarified what was and was not included in the Statement of Work, and helped leadership teams align on a reporting and workflow model that met compliance and business needs.
The outcome was a revised project plan with renewed commitment from the vendor and stronger internal governance. Both sites agreed on a shared reporting standard, and the vendor restored full project resources. Without mediation, the project may have been shelved indefinitely, forcing the business to continue using outdated systems and delaying the benefits of integration.
Best Practices for Using Mediation Services
For payroll professionals considering project mediation services, several best practices can ensure the process delivers value:
Engage Before the Breaking Point
Mediation is most effective when problems are still manageable. Delaying too long can harden positions and increase the cost of resolution.Ensure Executive Support
Mediation requires input from leadership on both sides. Executive involvement signals that resolving the conflict is a priority.Make the SoW a Living Document
Many disputes arise from unclear or outdated Statements of Work. Mediators can assist in revisiting and revising the document to reflect current expectations.Focus on Future Outcomes, Not Past Blame
Mediation is forward-looking. The goal is not to assign blame but to re-align on deliverables, timeframes, and responsibilities.Use the Opportunity to Support Change Management
Mediators can help address underlying resistance to new ways of working, encouraging teams to adopt the system as it was intended.
Conclusion
Payroll implementation projects require more than technical execution. They demand clear communication, strong partnerships, and flexible approaches to change. When relationships between vendors and clients begin to fray, the consequences can be expensive and disruptive.
Project mediation services, such as those provided by TLG, offer a structured, impartial, and effective method of resolving conflict and restoring momentum. By acting early and engaging a third party, payroll professionals can protect their projects, ensure timely delivery, and maintain the trust of both internal stakeholders and external partners.
For any organisation undertaking a payroll system transformation, mediation should be considered not as a last resort, but as a strategic tool to support successful delivery.