To ERP or not to ERP that is the Question..?
Transform Finance with Michael Ryan

To ERP or not to ERP that is the Question..?

At the time of going to 'press' our amazing Brand Ambassador Lara O'Byrne has secured a 6th place finish at the inaugural Women's World Decathlon Championships!!! An amazing result for a hugely talented young athlete and a trail blazer for women's sport, proud of you Lara as is all your friends and family.

In a week in which the Irish Olympic squad found the Medal tap and it just wouldn't switch off we know that all our athletes need a little help to realise their dreams, so if you are reading this and you can help one then reach out and do so.

For me Cathal Doyle running three 1500's on the bounce and still finishing like the Cork to Dublin express shows just how much competing with the best brings you to a higher level. Congrats to all Medal winners and the entire team who have already taken their Olympic bow.

Over the course of the Summer together we have advanced to just shy of 2K Subscribers and the Book is now proudly sitting on Amazon for those of you needing any inspiration of your own. On the business front I have been approached by many Clients who are pondering their ERP Strategy.

Now for those of you who love sport and don't know what an ERP is, it is the London Tube Map of a Finance function. It cannot function without one despite the fact that many have to labour with antiquated technology to fulfil their Financial Reporting duties. This Finance system is designed to take all the 'flows' of the Enterprise you work for and account for it in a streamlined fashion.

Every Finance person in the Subscriber list just rolled their eyes to heaven at that as it seldom accomplishes this. In fact in most cases the Finance system makes Accountants go prematurely grey. The IT people in the Subscriber list smile and say its your own fault you got the 'requirements' wrong.

I can assure our IT brethren that no Professional Accountancy body on earth teaches you how to define Business Requirements correctly, for that you need an experienced Consultant. 'Experienced' in what Finance is supposed to do.

The requests generally fall into 3 categories.

Firstly, the ERP Strategy has been set by the CIO and the Finance team are slightly uncomfortable with the direction of travel and the ERP path chosen, they want reassurance.

Secondly, the Finance team has a clear ERP preference of its own but is not experienced in running an effective RFP process and needs support to arrive at the best solution.

Thirdly, the CIO and CFO are in alignment on the ERP system but they are unclear on the Organisational impact. They are therefore apprehensive of how the change will be delivered in reality.

A system change is like buying a new car, you can see, touch and feel it. People 'get it'. Organisational change is like the mist in the early morning light, try and touch and feel it. Consequently, everybody gets nervous when facing the Organisational impact of a system change and by extension nobody puts their hand up first and goes, 'me, me' Ill own it!

I get approached by Clients directly and via Recruiters. I can assure you both that it makes no difference what business you are in, FTSE100, PE backed or Public body, all that matters is defining the Business Requirements correctly. Skip this step, light touch this step, you will fail when you reach implementation stage. Failure can take many forms but will certainly involve delayed Go Live, running over Budget and driving your Finance team up the wall.

There are 3 key principles which underpin my thoughts on ERP Strategy:

  1. The ERP exists to support the Business not the other way around
  2. People & Process are more critical than Technology and take precedence in decision making
  3. Fail to perform an effective review of your Finance Operating Model as it currently stands before you change anything and you can start adding time and money to your Budget

To fundamentally succeed with ERP Strategy you need a Consultancy that understands Finance at an operational level and knows how to define Business Requirements to drive the result you need. Start with a thorough review of your Current Operating Model before advancing to TOM options and do not commit to buying anything whilst this process is in flight.

How long does this take?

It depends on 3 factors. Firstly how many FTE are in Finance, what locations are they physically based at and how complex is your business model. On average I allow for 3 months to perform this task for Clients, whether its more or less depends on the headcount. For context I have performed this from 50 to 500 FTE.

This opening Phase of a project will make or break it and I appreciate that is hard to 'appreciate' as everybody sets out on this journey, when its all smiles and visions of the future but if I have learned anything in 25 years, its that if you fail to do this you will fail, its only by a matter of degrees.

Later this week we will have our Podcast which focusses on RFP Processes, which will bring more of this topic to life for you in an easy to absorb manner whilst out for a walk.

In other matters Man Utd are falling headlong towards an 'I told you so moment' based on Pre Season. I am genuinely fearful of City in the Charity Shield. I know they renamed it but to me its always the Charity Shield. I also think Utd's plans to build a new Stadium is a mistake and a cue to spend another 10 years in the wilderness, look at Wenger and Arsenal.

Is there something wrong with somebody writing proper Business Requirements to be Premier League Champions...I rest my case.

Reach out if you need any assistance on this topic, the ERP Strategy not Man Utd.

Best Regards,

Michael Ryan

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