LinkedIn Later

After a fascinating morning dealing with the 'camera gremlins' I finally got to talk to Mark Saywell about all things Finance Systems for Shared Services. Mark and I met way back in 2005 implementing a multi functional Shared Services Centre. Since then we have become friends and colleagues working closely together on Client engagements for Finance Transformation UK

Since I started this Newsletter I have been moving towards combining Video, Live Interviews and the written word via this Newsletter. Due to a slight issue with my eye I have been kindly helped by Mark Vincent and Martin Kirby FCICM over the last week with hosting the LinkedIn Lives and therefore you will find the Interviews on their respective Profiles.

I fully appreciate that all busy Professionals do not have time during the working day to watch a LinkedIn Live, however, many will take in the Recording at a more convenient time. To help you I have summarised for you here the key takeaways based on my chat with Mark Saywell as the LinkedIn Live transcription tool can sometimes find the dulcet tones of a Dublin accent a challenge.

We deliberately went over the allotted time and actually spoke for just over 90 minutes because there was many key points to impart, specifically if you are a CFO who has not previously led a Finance Systems implementation, with Organisational redesign such as Shared Services, during your career.

Firstly, do not feel alone, there are key steps which will guide you on the right direction of travel and there is plenty of experienced help to turn to on a cost effective, 'right for you' basis.

Last week I spoke to Mark Vincent about to how to drive real engagement on Finance Transformation programs and the conversation is a natural lead in to this one, so I encourage you to take a look first. We never discussed Finance Systems because we are clear that successful Change is always about the people.

Mark Saywell for now almost 20 years is my 'go to' ERP expert. Whereas I drive the Organisational Change in adopting a Finance Shared Services model, Mark works hand in glove with me to ensure we have the right Finance Systems to back this up.

We will manage your Feasibility Study into Finance Shared Services with ERP upgrade/implementation RFP or we will guide you through it as you do it. We frequently assist more than one client at a time as Clients want us to provide Program Assurance or 'Reassurance' which is not a full time role and therefore, more cost effective for Clients in the long run.

Mark neatly refers to this as your 'Critical Friend' working alongside you and your teams, only intervening to place an experienced hand on the tiller as and when required.

The conversation can be summarised as follows and the discussion itself is worth a listen as it gathers pace and provides real nuggets for the first time leader. Mark pointed out that many Leaders, experienced or otherwise, fall into the 'Jeans trap' - they spend more time picking their favourite Jeans then they do picking an ERP. Well, we exaggerate slightly, but you get the point.

The scene was set by Mark providing an overview of the ERP Market, some of the key players and their Market niche. This was just to set context for the conversation which focussed on how to successfully start your Finance Systems journey in a Finance Shared Services environment or indeed any other.

Many CFOs are in post for at least 5 years and their knowledge of the ERP Market can be limited to their immediate direct experience so the overview provides useful context to those who are not looking at their ERP Options on a regular basis.

1. Everything starts with the Exam Question. If it walks like a project and talks like a project is it a PROJECT? No. Not unless you firstly prove the Exam Question. We always advise Clients to base your Projects on real measurable evidence not 'anecdotal' evidence or the latest blow up at Quarter End. We like to tell Clients that the 'Exam Question is Due Diligence and the Business Case is pure Politics'. Think about that one.
2. Executive Leadership is a prerequisite. Don't expect to be part of the 3% of major change programs delivered on time and to budget without an 'invested' C Suite Leader. For the avoidance of doubt, its a Business Project, its a Finance Solution, the Executive Sponsor who must 'live and breathe' this Project is the CFO. Do NOT hide behind the CIO!
3. The temptation to rush headlong into issuing an RFP because you think your Finance System is antiquated, vulnerable or costly is great. In this day and age who isn't tempted to get answers from their 'Co Pilot'? In the world of major Change programs your 'Co-Pilot' is not your friend. When you decide to change Finance System the RFP route is the approach. How you 'approach' an RFP determines whether you need another job in 18 months.
4. Having defined your Exam Question so that you are clear on the 'Why', its time to ensure you know your patch. In simple terms review the People, Process and yes the Technology currently used to run Finance. Critically assess it, identify its weaknesses and bottlenecks. In short ensure you know and define your Current Operating Model before you even dream about the TOM. Those who wish to succeed 'look inwards before they look outwards. We debated this at length but if you haven't looked inwards for at least 3 months you are going to miss something, which proves costly later on.
5. Pull your RFP Team together from across the Business, ensure all interested Stakeholders are represented at Steering Group or Project Management level with appropriate levels of seniority. Involve everyone, talk to everyone. Sounds onerous and over the top doesn't it? That's because based on experience we know full well you are deliberately not talking to someone...so involve everyone or it will come back to bite you.
6. As you go through the process the 2nd Opinion from an experienced eye on your review of current processes and performance, art of the possible, compilation of the project team and composition of your RFP will prove invaluable. It will guard against group think and organisational bias based on management hierarchies. Remember, seniority does not equal 'the right answer' and your direction of travel requires outside challenge and validation which is independent of such hierarchies.
7. Test your RFP before issuing it. Think of the RFP as a 'Solution'. How easy is it to complete for the respondent and MOST importantly how easy is it for you to review and evaluate with consistency.
8. Start with a Long List but reduce it to a Short list of 5 before issuing the RFP. Review the results firstly as a desktop exercise and whittle the results to 3 for demonstrations and deeper analysis. Ultimately all factors being equal we are looking for cultural fit. Are you happy that the ERP Provider can work well with your teams over 18 months or more and that this Solution helps enable your Business.
9. You may face a result that finds you are happy with the ERP but not the implementation support. This is not unusual, so do not be discouraged, it just means you require an Implementation Partner. You will need to run an RFP process for this but that will build on your experience selecting the right ERP.
10. When you finally select the ERP and if required an Implementation Partner you are not quite there yet. Let a skilled negotiator in your Legal or Procurement teams perform final Contracts as you know what is always found in the detail...

There is much more in the conversation and you can view it at Martin Kirby FCICM Profile. Hopefully you found this useful and reach out if we can help you on your Finance Systems journey.

Best Regards,

Michael Ryan

Finance Transformation