Software Implementation Strategy

Implementing a new software system can be a daunting task for an organization. It takes time and resources to make it successful. Too often I have seen where organizations did not take a realistic approach to it. This typically leads to problems that can have long lasting impacts.

I recently worked with a professional services firm to implement a new billing, workflow, and document management system to replace one that the vendor was retiring. They had jumped right into the implementation without much planning and had challenges because they had:

• Expectations that it would work just like the old system it was replacing.
• Thought they understood the product without fully utilizing consultants or the vendor training resources to develop an implementation plan.

Successful implementations start well before the implementation work actually begins. It takes developing clear goals and objectives that everyone involved knows and understands. These should also be key considerations in choosing your software:

• Consider the Right Components or Modules from the Vendor – This is especially true for applications that support the finance function (i.e. Accounting, Performance Management, Tax, and Management Reporting). You need to understand what the various options provide and at what cost.
• Understand How it will Fit into Your Organization – How will your team use it? How will it interact with other applications? If it is customer facing do you understand what their experience? This needs to be thought through during the selection and implementation. If you do not invest enough time here, you could face some significant challenges.
• Using the Software as it is Intended – People get set in their ways of doing things a particular way. We are all guilty of that to some degree. You should change your business process to match the application instead of trying to force the application to work a different way. Otherwise, you will be constantly fighting it. Most of the established vendors implement “best practices” from working with their customers through the years.
• Understand your Total Cost of Ownership – There are several factors here to consider:
  • Are you implementing a SaaS solution or on-premises? If it is on-premises have you fully considered your infrastructure costs such as hardware, network, and updates?
  • Do you understand what it will take to maintain the application? For example, how difficult is it to add a new customer in a billing system. This is about ease of use by your team.
  • Do you understand the vendor’s pricing model? Vendors are moving beyond charging just for the number of users. This is especially true of SaaS applications. Some vendors are utilizing transaction volume fees and storage size fees. This can have a major impact on your overall cost structure.

Once you have selected the software, the next steps are to plan out implementing the software. Here are some key steps to take to chart a successful course:

• Formulate an Implementation Plan – Rely on the vendor and implementation experts for advice on how to structure the project to meet your needs. This should include resource planning to make sure the right people are able to work on it at the right times.
• Set Milestones with Deliverables – This will show progress, gain buy-in by the staff and leadership, and allow you to course correct if necessary.
• Plan a Project Budget – You want to consider all direct costs such as the software, hardware (when applicable), and consulting/implementation costs. Indirect costs are often minimized such as employee time spent on the implementation tasks, training, and lost productivity learning the new system. These should be considered because they do impact the organization’s bottom line.
• Develop a Roadmap – You do not want to attempt doing everything at once especially for larger systems. For example, if you are implementing a performance management system you want to pick the order to implement budgeting, forecasting, and profitability. This provides a vision as you implement each part.

One important lesson someone taught me years ago that a project is like a three-legged stool. You cannot change one leg without effecting the other two. Otherwise, the stool will not work very well. Implementations are the same. The three legs are project scope, time, and resources (people and money). If you increase or decrease one aspect without adjusting the others, you will create an imbalance that leads to problems.

Software implementations will almost always have challenges along the way. Financial Performance Consulting can help you be prepared for them and navigate you through them. Our experience will help you help you be successful. Please contact us on how we can assist you.