CFOs and CIOs grappling with whether to upgrade their finance and accounting systems can see the art of the possible in the distance: increased automation, improved data quality, enhanced scalability, and must-have ROI.
These benefits can fundamentally transform the company and enable waves of subsequent value-creation initiatives. But making this vision real is a daunting task.
Without the leadership of an independent implementation advisor versed in all facets of finance, accounting, IT, and transformation management, the systems journey can easily become mired in delays, cost overruns, and low adoption. Starting strong in the pre-implementation phase is the best way to realize the art of the possible.
Here’s what to consider when making substantial finance and accounting system investments in the near future.
Pre-Implementation: Charting the Right Course
Of the vast number of marketplace options, how can decision-makers choose the right system for their specific use case? How can they gain agreement, determine budget, and build confidence in a plan that will deliver the right ROI?
These are the right questions to be asking at this stage, and locking in answers now can save months and potentially millions of dollars over the course of the implementation lifecycle. With this in mind, here’s where and how decision-makers should be focusing their attention at this juncture:
- Leadership alignment: This includes senior management but also functional and operational leaders who will be impacted. These stakeholders, such as HR, IT, FP&A, Internal Audit, and Procurement, should be brought into the fold early so they can be deputized as change champions for their respective working groups. Their input is also valuable for a holistic perspective of the system, as any large finance and accounting platform will have integrations or touchpoints with other teams. Most critically, 95% of finance and IT decision-makers agree that strategic alignment between their functions is imperative to transformation success. As the key architects and agents for digital transformation, stakeholder alignment among them is mission-critical. To gain this alignment, leverage a human-centered design workshop. With a workshop focused on both current challenges and the future vision of the implementation, teams can map out milestones, dependencies, budgets, and stakeholders in a way that’s inclusive and attuned to actual human needs.
- People, process, data, and technology: As the four pillars of comprehensive transformation, it’s imperative that project leaders assess systems through each one. A system implementation is greater than just selecting the right technology; it has immediate upstream and downstream effects on end users interacting with the tool, the business processes that support it, and the data flows that make it operational.
- Technology architecture and strategy: The primary transformation goal of 53% of senior finance and IT leaders is to upgrade, replace, or consolidate legacy applications or systems, highlighting the urgency of getting this right the first time around with a large finance and accounting platform. The selected system must integrate and scale with existing and future IT infrastructure. An experienced implementation advisor knows which enterprise suites and ecosystems best align to each respective business. As such, they can help generate lists of vendors to consider, the pros and cons of each, and the dependencies required to move forward with a given software option.
- Business case development and approvals: Creating a coalition for change is another taxing effort in the pre-implementation process. There are a series of budget and timeline revisions, a committee of stakeholders to appeal to, and ultimately a final signature needed to move forward. Working through these chains of command collaboratively and efficiently is best done with the support of an implementation and project management advisor.
These focal points are the foundation for pre-implementation success and can help distinguish between what kind of implementation approach is most suitable. There are two different approaches that generally capture the majority of implementations within a conventional 12–24-month lifecycle:
- “Big Bang”: All functionality is delivered on day one. This is arguably more efficient and faster if there is only one transformation project occurring in this timeframe. On the other hand, it can be a jolt to the organization if there are bugs, a lack of training, and other dependencies.
- Incremental release: Functionality is delivered in waves, which might be preferable if there are concurrent transformations ongoing. While this approach may extend the timeline for full functionality, it has the benefit of being more configurable to how much change a company can tolerate throughout the lifecycle.
Mobilizing for Success
To maximize the pre-implementation period, companies should begin detailed change management preparations for planning, communications, education, and more. Change management cannot be an afterthought or just a one-time training exercise. How well this is executed can determine the type of go-live and whether the implementation is ultimately successful.
Key stakeholders of the change coalition (CoE, TMO, steering committee, etc.) must also begin designing the governance structure for maintaining forward momentum, clearing blockers, and improving the efficacy of the implementation start to finish. This framework will inform and dictate progress.
CrossCountry Consulting’s expert transformation management and implementation support methodology enables finance, IT, and third-party vendors to see through the fog of transformation and generate the best result – on time and on budget. Contact CrossCountry Consulting for end-to-end implementation expertise in your next transformation journey.