There are two common scenarios where companies tend to embark on implementing a new FP&A product: updating from a manual/legacy FP&A tool to improve efficiency or as part of a larger financial transformation initiative.
Whatever is the starting point, this is FP&A transformation and it is a proactive step towards adding immense value to a company. However, the tools by themselves aren’t enough. It’s also important to have the right mindset in three different impact areas. These impact areas aren’t always in the same order, and they’re often interconnected.
Process harmonization
Implementing a new product has the potential to clear away a lot of old inefficiencies and pave the way for success. Implementation can also disrupt workflows and systems across a company. Process harmonization is all about setting a global standard across different lines of business or geographies while increasing the acceptance of these new standards by all of the finance/business stakeholders.
Data rationalization
Data rationalization is the definition and mapping work that needs to occur to determine what, where, and how data will be collected, aggregated, and analyzed. If migrating from an existing FP&A product, this may be an easier process than if migrating from manual or legacy systems. If FP&A implementation is taking place as part of a larger finance transformation, this part of the process may be significantly easier because much of the data mapping and definition may have already been accomplished.
Change orchestration
Change orchestration refers to the work beyond just the technical implementation of a product that facilitates the likelihood of its widespread adoption. This work is done by advocates within the company. Throughout the implementation of a new product, it’s crucial to keep this cohort of advocates engaged in the process by including them in key parts of the implementation process.
We will cover each of these impact areas in more detail and with real examples in future articles. A key takeaway we’ll leave you with for now is to consider each of these areas as part of one systems design challenge that includes the process that generates the data — the data you’re analyzing to get the information and the motivation of the team that will see the product through to its launch and beyond, for business decisions. It’s important to accurately assess the amount of time each of these elements will take in your implementation process.
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This article is contributed by Finance Transformation Specialist Ramya Krishnaganth, UVID Consulting.
