The Proper Way To Do A Tech Implementation in Finance

This article is co-written by Tom Nehila and Anders Liu-Lindberg 

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Everyone can agree that technology can enable a brighter future for the finance function. However, most people probably also agree that too many technology implementations do not yield the expected return on investment. Hence, when we get a chance to learn from people who have both tried, failed, learned, and succeeded, we should listen up.

This week we get such a chance as we speak with Tom Nehila, former VP of Finance Transformation at both Readers Digest and Volt Information Sciences. Tom will share his recipe for successful technology implementation and the pitfalls to avoid. According to Tom, there is not just one way to do a successful implementation, but all implementation projects should include an end-state vision and a balanced set of measures. Some of those criteria could be… 

Of course, you might want to scale down on the ambition as perhaps you do not have the resources to become best-in-class within your near-term planning horizon. However, your employees will listen closely to what you expect any technology implementation to enable. Why? Because some will embrace and help shape the end solution, some will adapt to the changing process landscape, and unfortunately, some will decide or have decided that the planned environment does not align with their goals or competencies. 

How to manage the implementation 

Depending on the company’s size and available resources you might choose different ways of managing your implementation. Some can afford a dedicated PMO team with change management resources. Others may defer to existing resources within the finance team. However, Tom notes the importance of ensuring that in either case, you make the resources dedicated to the project. If it is an implementation that is managed by part-time resources, it will often go wrong. If you cannot dedicate internal resources to the implementation you will often be better off choosing an external implementation partner. 

Regardless of the availability of resources, Tom recommends using a Conference Room Pilot (CRP). In simple terms, this is a dedicated training and simulation room where the technology solution (with specific end-to-end use case scenarios) is made available to project resources and end-users. Tom then shares the objectives for the CRP. 

The intent of the CRP is to simulate the functionality of the new solution, Tom says. It is a chance for users to envision how it will work once fully implemented and provide their feedback and recommendations for improvement. Moreover, it is a chance to create buy-in and acceptance for the new solution by inviting users to try it out and involving them in the process. 

Common pitfalls to avoid 

Even there is no one right way of doing a technology implementation in Finance there are certainly some common pitfalls to avoid, notes Tom. Here are just a few of them. 

In the end, what determines a successful implementation besides the technology working properly is that users act differently post-implementation. They execute new processes as intended and use the freed-up time for higher value-adding activities. Too often implementations simply focus on the technical aspects and ignore the human aspects that are fundamental in increasing return on investment. 

What technology implementations have you experienced in your company. Did they go well or fail? In any case what happened that led to either outcome? Do you think following some of the steps outlined in this article will help you do a better implementation next time? Share your views and let us determine better ways of implementing technology in Finance together!

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Anders Liu-Lindberg is the co-founder, COO (Chief Operating Officer), and CMO (Chief Marketing Officer) at the Business Partnering Institute and owner of the largest group dedicated to Finance Business Partnering on LinkedIn with close to 9,000 members. I have ten years of experience as a business partner at the global transport and logistics company Maersk. I am the co-author of the book “Create Value as a Finance Business Partner” and a long-time Finance Blogger on LinkedIn with 49.000+ followers.