This is the second in our series of blog posts exploring key insights on Microsoft Dynamics 365 implementation methodology.
Navigating the Methodology Landscape
In our previous post, we established why your implementation methodology can make or break your Dynamics 365 project. Now, let’s dive deeper into the specific approaches available to you and how to determine which one best fits your organization.
Many partners prefer to implement, to estimate the work, to talk about everything that’s happening from a module or application functionality perspective. But as a stakeholder, understanding the broader methodology options gives you the power to make informed decisions and effectively evaluate partner proposals.
The Five Major Implementation Approaches
1. Agile Methodology
What it is: A highly iterative approach featuring short development cycles (sprints) with continuous feedback and adaptation.
When it works best:
- For organizations comfortable with evolving requirements
- When you need to deliver value incrementally
- In environments where user feedback and adaptation are priorities
- When teams can dedicate consistent time to the project
Agile gained momentum over the past 10-15 years, particularly with tools like Azure DevOps and JIRA making progress visible in real-time: “Agile has been replacing Waterfall methodology that relies on completing phases in order, and the reason for Agile… we have delivery that can be done more often.”
However, with ERP systems, “it is hard to isolate a particular feature to be deployed and used without others,” which creates unique challenges for pure Agile approaches in Dynamics 365 implementations.
2. Waterfall Methodology
What it is: A sequential approach where each phase (requirements, design, development, testing, deployment) must be completed before the next begins.
When it works best:
- For highly regulated industries with strict documentation requirements
- When requirements are well-understood and unlikely to change
- In organizations with formal approval processes between phases
- For projects with fixed-scope contracts
The Waterfall approach has been a mainstay in project management for decades, particularly within organizations that value predictability and comprehensive documentation. Its structured nature aligns well with formal governance requirements but can be less adaptable to changing business needs.
3. Hybrid/Program-Based Methodology
What it is: A flexible approach combining elements of both Agile and Waterfall, often with a program-level view for managing multiple workstreams.
When it works best:
- For multi-phase or multi-division rollouts
- When some components need agility while others require structure
- In organizations balancing innovation with governance requirements
- For complex implementations with numerous interdependencies
As our principal, Nash Simeunovic would strongly advocate for this approach: “I would stay away from ‘hey, we have to be agile, we have to be waterfall.’ I would agree here with Microsoft that we can pick the elements from both methodologies, use Success by Design guidance, and then come up with what fits our project.”
Also, program management becomes critical when dealing with multiple workstreams: “There’s over 40 different work streams that Microsoft Dynamics 365 can impact. You can roll them all out at once or one by one. That’s where the program level comes into play.”
4. Microsoft Frameworks
What it is: Microsoft-developed methodologies specifically tailored for Dynamics 365 implementations.
Key frameworks include:
- Success by Design (SBD): Microsoft’s current framework focused on architectural validation, risk assessment, and implementation best practices
- Sure Step: Microsoft’s legacy framework that still provides valuable templates and tools
- FastTrack: Microsoft’s implementation assistance program providing additional resources
There is an extensive resource available through Microsoft’s Success by Design framework, noting it encompasses a 704-page document with best practices drawn from about three to 4,000 projects that Microsoft got involved with directly or indirectly over the last five to 10 years.
Microsoft also makes many implementation resources publicly available on GitHub: “All of these documents are available to us free of charge…we can get many of these workshops and guidelines and templates.”
5. Partner Accelerators
What it is: pre-configured, industry-specific templates and approaches developed by Microsoft partners to jumpstart implementations.
When it works best:
- For organizations seeking faster time-to-value
- When your business processes align well with industry standards
- If you’re willing to adapt to pre-built practices over heavy customization
- When working with partners who have deep industry expertise
Many partners have developed their own branded methodologies: “We’ve heard of Edge, QuickStart, Express, Rapid… There’s all kinds of methodologies that partners call their own.” While these can accelerate implementation, he cautioned that “underneath, these methodologies typically include some form of Agile and Waterfall.”
Making the Right Choice: Variables to Consider
When evaluating which methodology best fits your organization, consider several factors:
1. Project Complexity
- Number of users and locations
- Geographic scope
- Regulatory requirements
- Integration needs
2. Organizational Culture
- Decision-making processes
- Appetite for change
- Experience with previous implementations
- Internal resources and capabilities
3. Timeline and Budget Constraints
- Fixed vs. flexible deadlines
- Available resources
- Funding model (capital vs. operational expenses)
4. Risk Tolerance
- Business criticality of systems
- Organizational change readiness
- Technical complexity
Pressure-Testing Your Methodology
The methodology must match your organization’s specific needs rather than following a generic template. Ask your team (or partner) why a methodology was selected—and how it will flex to fit your internal operating model.
Key questions to ask when evaluating a proposed methodology:
- How will the methodology account for our specific organizational structure and decision processes?
- What checkpoints and validation points are built into the approach?
- How does the methodology handle changes in scope or requirements?
- What expectations does the methodology place on our internal resources?
- How will success be measured throughout the implementation, not just at go-live?
The Configure-First Mindset
Regardless of methodology, great advice is to leverage “configure-first approach” that prioritizes standard functionality over customizations: “If Dynamics 365 Business Central handles finances for small and medium-sized businesses it’s worthwhile to look at how BC does it out of the box and compare that with your unique situation.”
This approach not only accelerates implementation but also simplifies future updates and reduces long-term maintenance costs.
Next Steps: From Methodology to Execution
Selecting the right methodology is just the beginning. Effective execution requires clear guidance, practical tools, and proven templates that can be applied immediately to drive successful outcomes.
In Part 3 in our series, we’ll dive deeper into execution excellence and the critical role of project governance in Dynamics 365 implementations.
