Are you a professional services leader considering new business management software, aka Enterprise Resource Planning (ERP) system? Perhaps you’re frustrated with outdated technology hindering efficiency or want to improve project management and client service. Maybe you’ve already chosen a solution and are eager to embark on the implementation journey.
This blog is for you regardless of where you are in this process. We understand that implementing a new ERP system can feel daunting, perhaps with some justification, given the success rate of ERP implementations.
Here, we’ll demystify the process and empower you to make informed decisions based on the thousands of implementations we have worked on over the past 25-plus years. Whether you’re just starting to weigh your options or are about to begin implementation, this blog will run through the key phases of the typical implementation and give you some guidance and best practices to navigate each step successfully. If you need more detailed guidance, feel free to contact us.
Get ready to unlock the potential of a modern ERP system to streamline your operations, empower your team, and propel your professional services business forward.
Let’s run through the key implementation phases.
Phase 1: Discovery & Planning (Preparation is Key)
There is a well-used proverb: “Fail to plan, plan to fail,” and it is no more apt than when it comes to ERP implementations. Laying the groundwork for a successful ERP implementation starts with meticulous discovery and planning. This phase is crucial for setting your project up for smooth sailing and maximizing the value you get from your new system. This (together with closing the project) is one of the most neglected areas of ERP implementations. Do this before the kick-off sessions with the software supplier so you are well-prepared and ahead of the game.
Here’s what you need to focus on:
Building a Dream Team:
- Assemble a cross-functional project team with representatives from key departments, such as finance, operations, HR, and IT.
- Look for individuals who are knowledgeable in their respective areas, enthusiastic about the project, and possess strong communication skills. These “champions” will drive user adoption and ensure a smooth transition.
Defining Your Goals & Scope:
- Clearly define your project goals. What do you aim to achieve with the new ERP? Improved efficiency? Enhanced reporting capabilities? Better project management?
- Make these goals SMART. SMART is an acronym for Specific, Measurable, Achievable, Realistic, and Timely. That is because it will make it easier to see if you have met them when the implementation is complete.
- Align your goals with your company’s overall strategic objectives to ensure the new system truly supports your business growth.
- Establish a well-defined project scope to avoid feature creep and ensure the project stays on track. Focus on core functionalities that will most impact your professional services firm.
Taking Stock of Your Current State:
- Analyze your existing business processes to identify inefficiencies and areas for improvement. It would be best if you had done this before you started to look for your ERP solution, but it’s never too late…
- Assess the quality of your data. Dirty or inconsistent data can lead to significant hurdles during implementation.
Completing these steps in this phase will establish a solid foundation for a successful ERP implementation. You’ll have a clear roadmap, a motivated team, and a realistic understanding of your current state, all of which will contribute to a smoother transition and a more impactful ERP experience.
Phase 2: Configuration & Development (Tailoring the System)
Now that you’ve established a solid foundation in Phase 1, it’s time to delve into the specifics of your new ERP system. This is Phase 2: Configuration & Development, where you’ll tailor the system to suit the unique needs of your professional services business perfectly. The name of this phase differs depending on the ERP supplier. We have seen it called “Design,” “Business Process Mapping,” “Information Gathering,” “Config workshops,” and many more. The name is not important other than you recognize it, but the steps involved will be similar:
ERP System Configuration:
- Dive deep into the functionalities offered by your chosen ERP system.
- Focus on configuring core workflows that are most critical to your business, such as project management, time and expense tracking, and client relationship management. However, if you buy an ERP specializing in professional services businesses, the vendor will do that in any case.
- Remember, out-of-the-box functionality can be powerful, so avoid extensive customization unless absolutely necessary.
Developing Integrations (Connecting the Dots):
- Most professional services firms rely on a variety of software tools besides their ERP.
- Plan and implement integrations between your new ERP and these existing systems (e.g., CRM, collaboration, HR, etc). Seamless data flow between these tools will streamline workflows and improve overall efficiency.
- Discuss integration options with your ERP vendor BEFORE selecting it to ensure it will meet your needs. Speak to a qualified integration specialist early on to avoid last-minute hurdles.
Phrase 3: User Acceptance Testing (UAT) (Ironing Out the Kinks)
As far as you are concerned, this is the next phase because once the Configuration sessions are complete, the ERP vendor will need to configure/customize the software for your business.
Before unleashing the full power of your new ERP system on your entire team, it is crucial to thoroughly test it through User Acceptance Testing (UAT).
What is UAT?
UAT involves real end-users from various departments testing the system and ensuring it meets their specific needs and workflows.
Benefits of UAT:
- UAT helps identify and resolve any bugs or usability issues before system-wide deployment.
- It also helps users familiarize themselves with the new system and promotes user adoption.
UAT Best Practices:
Develop a comprehensive UAT test plan that outlines specific scenarios and functionalities to be tested.
Involve key user representatives from different departments in the UAT process.
Provide clear documentation and training to UAT testers to ensure they understand the testing objectives and procedures.
Make sure everyone actually tests the system. This may seem obvious, but users have day jobs. They have other commitments and deadlines, so testing may never reach the top of the “to-do” list.
The UAT phase is one of the most critical phases of the project because it defines how well the “Go Live” will go and the user perception of the ERP. You only have one chance to make a first impression. Of course, bugs and configuration issues can be addressed after go–live, but addressing them is a lot more challenging. It’s like changing the wheel of a car. During UAT, you can stop the car to change the wheels. After going live, you are trying to change the wheel while the car is in motion.
Phase 4: Data Migration (Ensuring a Smooth Transition)
Migrating your existing data to the new ERP system is a critical step. Accurate and complete data is essential for the system to function effectively. Here’s what you need to consider:
Developing a Data Migration Strategy:
- We touched on this in Phase 1. Decide on a data migration approach. Will you migrate all data simultaneously (full migration) or take a phased approach, migrating specific modules first?
- Confirm how much data will be migrated. Is it just opening balances or all data?
- Consider the volume and complexity of your data when making this decision.
Data Cleansing and Preparation:
- Ensure your data is clean and consistent before migration. This may involve identifying and correcting errors, eliminating duplicates, and standardizing formats.
- Clean up data for old clients and vendors. Do you really want to load a vendor you used once in 2001?
Data Migration Dry Runs:
- Practice at least one data migration. More if possible.
- Test the migrated data for correctness. Reconcile it back to the original data source.
Partnering with Data Migration Specialists:
- Migrating complex datasets can be challenging. Consider partnering with experienced data migration specialists to ensure a smooth and accurate transition.
We cheated a little by putting this phase here because, while this is the time you will focus on Data Migration, you should be constantly working on it from the planning stage. By successfully completing this phase, you’ll have ensured the accuracy of your migrated data. This will significantly reduce the risk of disruptions and ensure a smoother transition for your entire team.
Phase 5: Go Live & Training (Embracing the Change)
The moment of truth has arrived! You’ve meticulously planned, configured, tested, and now it’s time to unleash the power of your new ERP system with Phase 5: Go-Live & Training. This phase is about ensuring a smooth transition for your team and maximizing user adoption from day one.
1) Change Management & User Training:
- Effective change management is crucial for successful ERP implementation. People are often resistant to change, so proactively address potential concerns and create a culture of enthusiasm for the new system.
2) Post-Go-Live Support & Ongoing Optimization:
The journey doesn’t end with go-live. Ongoing support is essential to address any user issues and ensure the system continues to meet your evolving needs.
- Regularly review system usage data to identify opportunities for streamlining workflows and maximizing the value you get from your ERP.
By prioritizing user training, providing ongoing support, and fostering a culture of continuous improvement, you’ll empower your team to leverage the full potential of your new ERP system. This will drive user adoption, boost efficiency, and unlock the competitive advantage your ERP holds for your professional services business.
Bonus Phase: Closing the Project & Lessons Learned (Reflection and Refinement)
Congratulations! You’ve successfully implemented your new ERP system – a significant accomplishment for your team. But before you dive headfirst into the day-to-day operations powered by your new system, take a moment to formally close the project and capture valuable insights for future endeavors.
1) Revisiting Goals & Scope:
- Recall the goals and project scope you defined in Phase 1.
- Evaluate: To what extent were your initial objectives met? Were there any unexpected challenges or unforeseen benefits?
2) Project Review & Lessons Learned:
- Conduct a comprehensive review of the entire implementation process.
- Identify: What aspects of the project went smoothly? Where did you encounter roadblocks?
- Document: Capture your “lessons learned” in a detailed report. This valuable information will be instrumental in refining your approach for future projects, ensuring even smoother future implementations.
3) Celebrate Success & Recognition:
- Take a moment to celebrate this successful project completion with your team.
- Recognize individual and collective contributions to keep morale high and foster a culture of continuous improvement.
Businesses rarely do this, which is a huge missed opportunity. Why?
- It lets the ERP vendor off the hook if they fail to deliver what was promised.
- More importantly, your business will probably do it again in 5 – 10 years.
By dedicating time to this final phase, you’ll ensure a clean project closure and gain valuable insights that will empower you to approach future projects with greater confidence and efficiency. This will solidify your ERP implementation expertise and position your professional services firm for continued success.
We hope you enjoyed this blog, and if you need any more information about implementing a new ERP in your business, contact us; we’ll be happy to talk you through it.
