Scott Franchini is a associate at Phoenix-based RedHammer, an outsourced accounting and consulting agency specializing within the development trade, who has held management roles at Deloitte & Touche, Deloitte Consulting and Microsoft. Opinions are the creator’s personal.
I’ve been implementing accounting software program for the reason that late ‘90s, and regardless of all of the technological advances, the basics of a profitable implementation haven’t modified.
Via the years, I’ve seen numerous tasks in varied industries, together with development, go off monitor — not as a result of the software program was flawed, however as a result of corporations made avoidable errors through the course of.
Implementing new software program is a serious problem for any group, particularly within the development trade, the place job costing, subcontractor administration and compliance monitoring add layers of complexity. Beneath are 10 of the most important errors I’ve seen corporations make through the years when implementing new software program techniques and methods to keep away from them:
1. Underestimating complexity
Some of the vital pitfalls in any software program implementation is underestimating the complexity concerned. The system you are implementing could also be extra intricate than anticipated, or you might oversimplify the method, overlooking crucial particulars. Misjudging complexity usually results in rushed implementations, placing your entire mission in danger.
To keep away from this pitfall: Totally consider the software program’s capabilities and what you are promoting processes earlier than beginning the implementation. Break down the mission into manageable phases, permitting for detailed planning and changes as wanted and interact subject material specialists to evaluate and perceive the complete scope of the mission.
Scott Franchini
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2. Inadequate planning
Insufficient mission planning is one other frequent pitfall that may severely impression the success of a software program implementation. With no well-defined plan that outlines mission targets, timelines and useful resource allocation, the implementation course of can rapidly change into chaotic.
To keep away from this pitfall: Develop a complete mission plan that addresses all features of the implementation, together with preliminary setup, testing and post-go-live assist. Assign clear roles and duties to make sure accountability and communication all through the mission. Often evaluate and modify the plan to remain aligned with mission targets and timelines.
3. Failing to reset
Overlooking the prospect to reset key components, reminiscent of your chart of accounts and price codes, is a missed alternative to reinforce your monetary and operational reporting. Implementing new software program is the right time to wash up and reorganize these parts to raised mirror your present enterprise wants.
To keep away from this pitfall: Take the time to guage your current monetary buildings and determine areas for enchancment earlier than migrating to the brand new system. Seek the advice of with monetary specialists to design a chart of accounts and price codes that align together with your present and future enterprise targets.
4. Not figuring out reporting necessities early
Failing to determine reporting necessities at first of the mission is a serious pitfall. With no clear understanding of the required reviews, the system configuration might not assist what you are promoting’s wants, resulting in pricey changes later.
To keep away from this pitfall: Conduct an intensive wants evaluation to determine all reporting necessities earlier than configuring the system. Collaborate with finish customers to make sure the system will ship the insights they want. As well as, incorporate flexibility within the reporting construction to accommodate future enterprise adjustments.
5. Counting on distributors
Relying solely on the software program vendor to arrange and take a look at the system might be dangerous. Whereas distributors know their merchandise, they could not absolutely perceive what you are promoting processes or distinctive operational necessities.
Distributors usually deal with delivering a generalized answer that works for a broad vary of purchasers however might not align together with your particular wants. This misalignment may end up in a system that doesn’t absolutely assist your processes, resulting in the necessity for pricey post-implementation customizations.
To keep away from this pitfall: Take an lively function within the setup and testing phases to make sure the system is tailor-made to your particular wants. Set up a cross-functional crew inside your group to supervise the implementation and testing.
6. Not understanding your contracts
Not totally studying and understanding your contract together with your vendor is a standard pitfall. Software program distributors and repair integrators usually embrace baseline providers of their contracts, with any further work usually dealt with by means of change orders, which might enhance prices.
To keep away from this pitfall: Rigorously evaluate the contract, paying shut consideration to the scope of labor and any further charges. Seek the advice of with authorized {and professional} specialists who not solely perceive the legality but additionally have expertise with software program implementations to make sure that the contract phrases align with the complexities of the mission.
7. Inadequate coaching
Inadequate coaching may end up in underutilization of the software program’s capabilities and will lead customers to revert to outdated processes, which might restrict the effectiveness of the brand new system.
To keep away from this pitfall: Develop an in depth coaching plan that covers all consumer roles and system functionalities. Present steady coaching alternatives, together with refresher programs and superior coaching periods and encourage a tradition of studying, the place customers really feel supported in mastering the brand new system.
8. Not prioritizing knowledge migration
Knowledge migration is a crucial step that, if not carried out correctly, can cripple a brand new system. Poorly managed knowledge migration may end up in inaccurate or incomplete knowledge, resulting in vital issues in each day operations and decision-making.
To keep away from this pitfall: Prioritize knowledge migration early within the mission, allocating adequate time and sources for this activity. Use knowledge validation instruments to make sure accuracy and completeness earlier than going stay. As well as, you need to convert grasp knowledge early and do a take a look at run of crucial transactions to make sure the system behaves as anticipated.
9. Overlooking put up go-live assist
Failing to plan or price range for post-go-live assist can considerably undermine your software program’s long-term success. Even essentially the most strong techniques require common upkeep, updates and troubleshooting.
To keep away from this pitfall: Embody post-go-live assist in your preliminary mission plan and price range. Set up a assist crew or contract with exterior suppliers to deal with ongoing upkeep and updates. Plan for normal system audits to determine and deal with any points early on.
10. Poor change administration
Poor change administration can derail a software program implementation. Individuals usually resist change, particularly when it disrupts established workflows. With no structured method to managing change, adoption of the brand new system might undergo, leading to underutilization or reversion to outdated processes.
To keep away from this pitfall: Talk the explanations for the change clearly and constantly to all stakeholders. Contain key stakeholders within the decision-making course of to construct buy-in and scale back resistance and supply ongoing assist and sources to assist customers modify to the brand new system.
The journey of software program implementation is never easy, however with the proper planning and foresight, it doesn’t must be a supply of frustration or monetary pressure.
Whether or not you’re a small development firm or an trade big, the important thing takeaway is that this: software program itself is never the issue — the way you implement it’s what makes all of the distinction.
