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Firm Announcements
2015 SMART Awards
Your Next Software Implementation
About Nperspective
 
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Announcements
Gary Colbert has been elected to the Board of Directors of the Tampa Bay chapter of the Association for Corporate Growth.

Sean Murphy has been elected to the Board of Directors of the Florida chapter of the Turnaround Management Association, and will chair the Membership Committee as well as the newly developed Regional Directors initiative.
 
Al Anderson has been selected to serve on the Board of Directors for the Corporate Finance Association Orlando chapter.
 
Russell Slappey will speak to area CEOs on Ensuring Success: How to Best Manage Your Company for Optimum Profitability at a CEO Roundtable Experience Event sponsored by Grow FL on April 17, 2015. To register, email:  ehewkin@growfl.com

2015
SMART Awards

Nperspective is pleased to join Wells Fargo as presenting co-sponsor of ACG Orlando's 10th annual SMART Awards.  Please join us on May 13, 2015, to see the winners announced. Click here for more details.

March 2015

 How to Make Your Next Software Implementation Project Successful

 

   
By Bill Long, CPA 

Over the years, a really interesting phenomenon has taken place in the market. As companies seek opportunities to compete in the business environment, the need to upgrade their financial and ERP software has become a top priority. However, the problems created by the continuing use of a legacy system has kept them bound by the same business processes that are preventing them from moving forward.

Faced with the challenge of remaining competitive in the marketplace or to even begin to think of growth through acquisition, they realize that they need to update both their business processes and the software that they are using to drive the business. They are primed to remain competitive so they need to make the changes quickly to keep that edge.

In order for them to change the business, they turn to packaged software solutions because it seems to be the best way to implement the upgrades they need. The newer software presents the easiest way to change the business. The thought process is:  "... the newer software has been bought by competitors and has yielded them success so it should also bring success to our company." Of course, most people expect the software to adapt to existing business processes. This expectation is a major reason for software implementation failure. Most people do not understand that for a purchased software package to work, the company processes must be mapped to the software package.

Most companies find a software package, negotiate their best price, and have the software provider implement the software. The business expects to start using the software and then reap the benefits. Unfortunately, most companies do nothing to address the appropriateness and efficiency of the underlying business processes, and since the processes haven't changed, the new software only exacerbates the existing problem.

The software provider normally quotes the best price available and tells the executive team this implementation will go well because they have a project plan that has been followed many times along with a skilled project manager to guide them through their implementation. Everything sounds so right - just sign on the bottom line and the world will be better.

This is the beginning of the problem, and unless correct action is taken this project will head down the path that so many projects have gone before and will continue to go. The software gets purchased and is set up to run on the company's systems, but it never gets implemented or is only partially implemented.
 
Ask these important questions:
  • Does the software you are implementing really match to the business process and functions performed?
  • Does the software company and project manager provided understand your business, or just the software?
  • Who is really paying the project manager, you or the software provider?
  • What are the credentials of the project manager provided by the software company?
  • How does your company get represented?
  • Do you know what your companies' responsibilities are for successfully completing the project?
  • If the project fails to perform, how do you get resolution?
  • Who is going to tell you when you have problems?
  • When will the problem get escalated?
  • And, finally, who is controlling your expenditures?
Large companies face the same challenges as small companies. The only difference is the larger ones tend to get a steering committee composed of both software provider and client to oversee the project. Even then they sometimes experience failures. Most of time it comes down to the client not having enough resources available for the project, but the counter from the client is the software company project manager is not doing his job.
 
Smaller companies do not have the luxury of assembling a team. Worse yet, they do not have the resources to pull away from their everyday work to work exclusively on the project. This causes a delivery gap, where the software provider builds the solution that the client cannot use and a client team that does not want to implement the non-performing product because it does not match their current business processes. This creates a very unpopular situation, with projects coming to an expensive dead end.

To avoid this problem, the client should hire their own project manager that will represent the client in negotiations with the software provider.

This person has the responsibility to monitor the progress of both the software provider personnel and the client resources. The project manager develops the project plan that needs to be followed by both parties, while ensuring that the business is positioning itself for the implementation. This should include mapping the current business processes to the new software and making process changes so they map to the software requirements. Depending on when the client project manager is engaged in the project, the responsibilities can include the negotiation of the contract, the comparison of software selections, managing the entire project, identifying the scope and resources, tracking project status, project status communication, problem resolution, and dispute resolution.

This project manager becomes the implementation driver to the project. He or she is responsible for ensuring requirements are met, the scope of the project is maintained, budgets are managed, resources are applied correctly, processes are changed were needed to map to the software, data is tested and compared to know the outcomes and the client is eventually ready for implementation.

The project manager also needs to assess the state of capability for the implementation. Many times the client may think they are ready, but are not. Other times they may need to be pushed into being ready. But only the project manager is able to assess the risk of implementation.

The project manager can be external or internal. Most companies do not have a project management staff, so external is more likely. How do you find an external project manager that knows your business? A project manager is not a one size fits all, but they also must be very flexible and disciplined. A good project manager with business process and financial skills can pick up the business quickly and then use the client's resources to build upon the existing knowledge base. A really good project manager can work both the software provider and client side of the business equally.

In the end, the client wants the project delivered, and the software provider wants a successful implementation. Both parties have no desire to end with a poorly implemented project. The software provider should not be using their project manager as the link to making this implementation work. Remember, the software company's project manager is working for the best interests of the software company, not the software purchaser.

It makes sense to have a project manager responsible to the software purchaser managing the software implementation. It will work better for software provider and the software purchaser.

Nperspective has team members with extensive project management and systems implementation experience. We can assist in both reviewing and selecting available packaged financial and ERP systems and manage the implementation of your selected software package for you. If you are looking for new systems or are trying to implement a system you have already purchased please contact us for a free initial consultation on how we can help you achieve a successful implementation.
 
If your company or one of your clients may benefit by our experience and knowledge, contact Russell Slappey at 407.448.1781 or rslappey@npcfo.com for a complimentary consultation.
About Nperspective
Nperspective, LLC provides interim, part-time, and project CFO services using a flexible engagement model that is dependent on our clients' unique business needs.  Our partners are seasoned CFOs who focus on rolling up their sleeves, are accommodating to client needs and helping create significant value from within their finance organizations.

Contact us at info@nperspective.net for more information.