Technology is no longer just a set of tools; it is increasingly becoming the backbone of enterprises, spanning all business processes and functional departments. Leading business software companies have embedded leading practices and industry requirements into their core products. Nevertheless, we still see many companies spending millions of dollars implementing these technologies, only to turn them into upgraded versions of their existing platforms. Organizations often overlook the opportunity to use these projects as catalysts for operational transformation, failing to fully realize the planned expected outcomes. Recently, we began working with a large manufacturing client that is undertaking a multi-year ERP implementation with an estimated budget exceeding $100 million. How can enterprises achieve their target outcomes and benefits without overspending?

The key lies in being an active partner in the implementation and leading the transformation, rather than playing a passive role in the design decisions suggested by the system implementer. Active participation means being fully prepared, designing for the future, and driving change.

Being Fully Prepared

At the start of a project, the technology implementer will prepare to demonstrate the business processes within their technology and raise questions needed to configure the system. In most cases, the project team is not ready for the detailed discussions and critical decisions that are essential to configuring the new system according to the business's unique needs. Implementation planning should include:

  1. Documenting and analyzing the current state:The current state involves the entire ecosystem in which you operate, including the end-to-end technology stack and integrations, data cleanliness, business processes, and policies. This not only reveals pain points, conflicting practices, and improvement opportunities, but it is also valuable when explaining processes to the system implementer.
  2. Reconciling conflicting processes and policies:We have all experienced meetings where department leaders talk past each other due to misaligned processes, policies, or even incentives. These situations intensify when implementation timelines add pressure and force conflicts. Identifying and negotiating challenges early, while not making conflict management easier, promotes more thoughtful analysis and solutions.
  3. Developing strategy and governance:Financial systems have many stakeholders, and each group may have different priorities. Strategic leadership is essential for defining implementation goals and priorities, providing the project team with the structure and support for daily execution.

Designing for the Future

Now that you are prepared for the system implementer's arrival, it is time to design your future-state product. Here, it is crucial to anchor on the technology's core functionality while incorporating the nuances that make your business (and processes) truly unique. Finding the balance requires the organization to:

  1. Focus on standardization:Organizations often implement new systems to improve efficiency through automation or additional features. However, configuring automation for complex, customized processes can be costly both during implementation and ongoing maintenance. Look for opportunities to simplify processes wherever possible to leverage the technology's leading practices.
  2. Design for roles, not people:Subject matter experts (SMEs) may anchor design standards based on how they (and their collaborators) currently work. Sometimes, it is necessary to challenge SMEs to avoid configuring the system around the existing organizational structure. Instead, they should strive to optimize processes by leveraging system capabilities and adjust roles and organizational structures accordingly to ensure successful adoption and reduce cumbersome handoffs.
  3. Adopt an end-to-end mindset:Today's technology has built-in end-to-end leading practices. Therefore, they require cross-functional collaboration and negotiation to achieve the organization's optimal functioning and should not be modified to support current silos and organizational hierarchies.

Driving Change

Implementing new technology will challenge the project team and the organization to accept and embrace change. Replacing large, integrated systems, such as financial systems, has a significant impact on business and operational employees. Strategies to generate enthusiasm and reduce fear of the unknown include:

  1. Leveraging user experience (UX) methods:End-user adoption is critical to a successful implementation. UX methods provide the project team with the end-user perspective to guide how to design the technology and effectively communicate change.
  2. Aligning with guiding principles:Establishing guiding principles and aligning decisions with these principles streamlines the process. When the project team consistently anchors decisions on shared principles, progress is faster, re-litigating is avoided, and continuity is maintained.
  3. Encouraging executive involvement:Executive leadership must be involved throughout the project lifecycle, not just at the start, to support and drive process redesign. Beyond the value of project sponsorship, regular engagement and input from executive leadership are essential for steering the project toward its goals and strategic objectives.

Conclusion

Financial technology implementation is not a passive investment. To prevent high costs, the project team must be prepared to understand the business in detail, be willing to deviate from current norms, and be committed to bringing the entire organization along. Often, this commitment requires leadership to not only approve change but also act as the catalyst for it.