Educate Yourself

Introduction

Selecting a new accounting / ERP system isn’t something to be taken lightly. Any project of this magnitude and critical importance can fail simply because you get off on the wrong foot. Start this project by taking no direct action. Instead, spend some time educating yourself so that the decisions you make as you proceed will be based on realistic facts, not dreams or the marketing hype of software vendors.

Learn First – Act Later

In spite of the fact that companies spend enormous amounts of time selecting and installing accounting / ERP systems, it appears there is an even chance your system will fail to achieve its objectives, or will fail altogether. Given this frightening scenario, and the fact that you are about to undertake the exact same project as those who have preceded you, what can you do to increase your chances of success?

• Learn from the failures of others. Why should you make the same mistake others have?
• Develop an understanding of what’s possible. The more you know about the potentials that can be released through current accounting / ERP systems, the better prepared you will be to define exactly what you require to improve your own operations.
• Accept the fact that this is an evolutionary process, not an instantaneous act. The system you will purchase will have to adjust to changes in your business just as you adjust products, prices, processes and personnel. Use the new system to help you create competitive advantages, rather than just staying with the pack.
• Construct a foundation for greater success. Changing your accounting / ERP system without taking the opportunity to analyze and improve your business is the same thing as placing a new engine in a race car that’s ready for the scrap heap. Ask people in the trenches how you can help them do a better job.
• Don’t be afraid to open yourself to a critical self-analysis. Use this selection project to initiate a positive critique of as much of your business as you feel is appropriate. The operative word here is critique, not criticism. There is no room for criticism, for that’s negative thinking, just as there is no such thing as problems, only opportunities for improvement.
• Remember to include your customers. Since your customers are your most valuable business partners next to your employees, involve them in this process. Ask them how you can serve them more effectively, either through software or business processes.
• Utilize outside resources if appropriate. Don’t forget that it’s OK to pick the brain of vendors and resellers to learn more about possibilities.
• Don’t choose a path (product) just because others have chosen it. Make sure it’s the right path for you and you alone. Regardless of what you read or what other experts may tell you, this selection project must be your responsibility. Create a selection plan that reflects the issues you feel are most important. Select that one product with which you can form an efficient and effective business partnership.

 Summary

As we proceed with our discussions, I want you to keep one very important fact in mind. It doesn’t matter whether you are purchasing a small business accounting system or a multi-national enterprise ERP system. The questions you ask yourself will remain the same. The process itself will remain the same. The only difference will be the complexity of the selection process itself.

Part Three, my next post starts with a question. “What’s the objective of this project?” Selecting an accounting / ERP system isn’t the answer. The accounting system is nothing more than the means to some other ends. If your underlying objectives aren’t well conceived, it makes no difference what you purchase. You cannot proceed to the next step until you have taken the time and asked yourself “Why are we doing this, and does it make sense?“