If you’re considering a new financial system, here are some straightforward tips that will help you choose the right system, put in place the right changes that you need and achieve the benefits you are seeking.

1. Think hard about current and future compliance needs – this is a finance system after all and it must protect both you and your firm. Be certain that the system can allow you to put effective controls in place and lock down key processes in areas such as around freezing orders or money laundering. It shouldn’t just come down to the system, of course, but better to have that safety net than none…

2. Don’t confuse reporting flexibility with “ease of reporting”. A seemingly healthy mass of reporting tools and options can quickly turn into extended reporting development times as the true limitations of those tools surface. Try to define the key reports you will need before you choose a system; it will add little to the overall project timeline and you can get your vendor to commit to delivering those reports contractually.

3. Don’t assume that any system will process all standard financial transactions straightforwardly. Take a hard look at how the interest calculator or bank reconciliation works, for example. If the system allows you to issue a single bill to a client for multiple matters, check how that process works, especially if the client subsequently queries the total for a single matter. It’s obvious, perhaps, but be thorough.

4. Do your homework – meaning, do proper due diligence and make sure you are comfortable with the vendor, not just the account manager. That includes meeting support managers, project managers, system trainers and the Managing Director. Talk with existing customers of the vendor too and not just so-called reference sites.

5. Introducing a new system will involve considerable changes. Work hard to get the rest of your business on-side with those changes and involve the broader business in key decisions, especially where there are compromises to be had. This can sometimes be the most time consuming and unpredictable aspect of a project. It can also be the strongest of success factors if you get it right.

6. Tell people what you are doing! Not everyone wants to hear that you’ve completed your detailed nominal ledger but announcing the project and communicating the right level of information to everyone affected keeps the project alive and makes the launch smoother.

7. Always have a project plan and be honest about where you are with it. If a project is going off course, be in a position to react early. Encourage project team members to be open and honest about their project aspects. Burying bad news is a project killer.

8. Challenge yourself to achieve many of the benefits from day one. Yes, that’s easy to say but it’s too easy to just put a new system in place and aim to introduce the critical changes later. Your project should have a momentum and level of executive support which allows you to introduce key changes at the time of the launch. Exploit that.

9. Remember that selecting a system is just a part of the project, not the start of the project. Once you sign the contract, you’ll be charged for the vendor support you receive. More preparation ahead of choosing a system should equate to fewer project risks and lower your vendor implementation costs. That won’t make me too popular with vendors but they usually have good pre-sales support staff – use them!

10. And don’t forget the contract! Some implementations go live without the contract having been signed. Many involve standard vendor terms with little variation. In a marketplace full of vendor acquisitions or even future upgrade charging, look to sign the contract you want to have and make provision for the time it might take. Take a hard look at the contract as part of the selection process.

Now, many of the above tips could apply to any project and the project “golden rule” equally so. What is the “golden rule”? Well, for me, it’s to always keep the objectives and benefits of a project in mind. It helps give the right perspective on a project and helps navigate through conflict and issues.

Challenging projects (and every financial system project is arguably challenging!) should be just that – challenging and rewarding too.

Damian