Overcoming Barriers to Replacing Your ERP

Replacing your current accounting and enterprise resource planning (ERP) system is no easy undertaking. But it’s becoming a common trend, with about half of all companies currently unsatisfied with their ERP.

The top five roadblocks that hold most organizations back from a much needed ERP replacement are: cost concerns, data conversion worries, fears about losing productivity, re-training angst, and hesitation to go through another implementation.

In this post, we’ll provide a deeper understanding of those road blocks and how they are holding companies like yours back from success. You’ll receive some guidance about how to mitigate the negative impacts of these concerns and learn to get yourself in the right frame of mind and on the right path forward.

Index:

1. Haven’t you spent enough money already?
2. Training again…Turn a burden into an opportunity
3. Am I going to lose all of my data?
4. Rally your troops for another implementation
5. Minimize productivity losses

This is probably the to tackle toughest barrier to tackle… the one that hits your bottom line. So let’s not beat around the bush and address this right away.

Concern over ERP implementation costs can keep you up at night, but the benefits on the other side of replacement will make it all worthwhile. In fact, after a successful implementation, many organizations have acknowledged that the risk of doing nothing far outweighed the risk (and costs) of replacement.

So, how can you take the first step, while keeping cost-related nightmares at bay?

Analyze what you are missing today versus what you will get after the transition. This gap analysis will keep you focused on the results you will achieve, rather than cost.

Ask yourself some difficult questions. What’s currently working in your financial system—and what must change? What is essential versus nice to have?

Does your current system have an audit trail? Are you compliant with Sarbanes Oxley or other government regulations? Do you need multi-currency or multi-company functionality? These questions help you zero in on what’s really important to you.

Create a detailed list of requirements so you can focus your search on a limited number of vendors that will fit your unique needs. This exercise also shows you whether the anticipated benefits for your practice outweigh the risks.

Create a detailed ERP upgrade plan so that you know the money it’s going to take, and how you can best apply your dollars to move your practice forward or better yet. What does your prospective vendor offer versus what you can do for yourself? How can you re-assign costs?

An ERP that pays for itself?

Unless you’re a cash pay practice, to play in the game, you need to be using an effective ERP system. The right one makes your life easier every single day—and it’ll be worth every penny.

You need an ERP system that can prove it’s ready for change and not playing catch-up. If you end up with a vendor that isn’t able to respond to industry demands, you’ll see this theme play out in future projects. So, be ready future regulatory demands by choosing a vendor that’s already proven it’s ready at each new turn. This way, you’ll be able to give yourself the most time possible to prepare for regulations and changes.

In the end, the cost of moving to a new system may not be as high as the cost of staying on a system that doesn’t meet your long-term needs. One thing any trusted advisor or CPA will agree on is that it’s important to upgrade your systems before you have to, because at that point you’re already losing money.

You’re probably not very happy about going through ERP training again. Nobody really is. But, here’s the good news:

1. You’ve already done the hardest part— seriously! Think about it. You’ve already taken that huge leap from spread sheets and antiquated databases to an automated accounting system. Take a moment to think about how much easier that will make things the second time around.
2. Once you’ve learned one system, subsequent systems are easier to grasp. The principles of accounting don’t change. Generic systems like QuickBooks try to boil down accounting into a format that can be used by any business. However, no two businesses are the same and a more robust ERP will be able to be customized to how your business manages its finances.
3. The mystique and fear factor of ERP is already gone so you, and your staff, can focus on the task at hand with a realistic point of view.

Now that you understand how accounting systems work, it’s important to analyze your current workflow against your new system. Be sure you’re ready to train effectively in your new system and work with your new ERP partner to ensure you cover the critical elements of your workflow.

For example, select specific assessments and ask the vendor to show you how to do them in the new system. See how you’re capturing data in the new system and make sure nothing is missing. This way, your accounting staff will feel comfortable with their workflows and confident that they’re getting the most from their training experience.

Another round of ERP training doesn’t have to be that painful, especially if you have the right attitude and partner.

Worry about ensuring that your financial data transfers accurately and easily into your new ERP is another big barrier that holds organizations back from making the change.

When moving from one accounting system to another, it’s important to bring over only what’s necessary and leave behind what’s not. Think of it as an opportunity to analyze and “clean up” your data—a fresh start.

There are many ways to accomplish this process. But you need to think through your approach to get it right. Some points to remember:

You’re going to need to keep a backup of the old system for a while.

Before you go live, do conversion testing and be sure it works.

Let your new ERP partner lead you in this process by telling you how it works and advising you on what to do.

If you and your new ERP partner follow the right steps, your data will be safe and available after your implementation. Plus, you’ll get a rare chance to fully analyze and clean your data.

Your ERP partner has done this before, so lean on them.

Preparation and leadership are key. From front desk staff, to accounting personnel, to IT and executive management; all parts of the team need to be involved. It takes time, effort, dedication, and willpower to rally your staff for another ERP implementation—and that takes strong leadership at the executive level. Here are a few pointers:

Give your staff time to adjust to the idea of an ERP switch. Don’t blindside them with another implementation, especially if they felt surprised the first time around. It’s important that your implementation plans are transparent and communicated well in advance.

Let your staff be part of the decision and the process. Do this WITH your staff, not TO them.

Be flexible when it comes to training and education—busy accountants may already be feeling strapped for time. Be considerate and flexible.

When it comes to your customers, they should know there’s a process going on. Be honest. You may need to ask them for updated information—or to sign up for a new Portal. Highlight the benefits of the new system for your customers. You don’t want them to be concerned.

As long as you have an ERP conversion plan in place before the switch, you can reassure customers that their data is safe—and reassure your staff that the switch will benefit them, your company, and your customers.

The good news is that many providers ramp up faster with a replacement ERP than they did during their initial implementation.

Careful preparation is the best way to prevent a significant drop in productivity—and its associated financial impact—after your system goes live.

Ensure staff readiness

• Make sure your staff is comfortable with your new workflow, interface, and technical requirements—and that your software meets the majority of their demands.
• If possible, clear your administrative backlogs before go-live so your billing, scheduling, and coding staffs have a clean slate.
• Take time to learn to use the new system and build out functionality and pick lists before go-live.
• Ensure ERP experts are on hand to answer questions and give a quick tutorial when needed.

Pro tip: Solicit the help of an accounting temp staffing company to strategically use temporary work to perform day-to-day tasks while you focus on the implementation.

Extract data up to a month in advance

• Extract information from your old system up to a month ahead of time, before go live on the new system. Use your upgrade processes as an opportunity to become proficient in the new system without having customers in front of you.

Create mitigation plans

• Plan for the loss of productivity and come up with mitigation plans to overcome it.

All the workflows you collected during training will come into play here. Your partner should be at the ready to help you because they see where people may falter every single day—and can help prevent it.

Open up communication

• Encourage staff to make complaints known and give them a chance to show your ERP project manager the roadblocks.
• Make it clear that, while you can’t smooth over every rough spot, you hear staff concerns and understand them.

Replacing your ERP software is a great opportunity to “re-engineer” processes and operations within your office. This way, you’re working smarter with your ERP. For example, if you previously put your “paper world” into your accounting system, now you have the chance to right-engineer the process. You have lessons learned behind you—and the chance to clean the slate and do it the right way this time around.

Get better results, period.

By tackling these 5 barriers and common objections head on, you can get through your replacement project and get back to sleeping soundly—without accounting nightmares!

Here at BCS ProSoft, we’ve already helped 1,500 companies select and implement new ERP systems. If you are in “ERP replacement mode,” contact us. Our experts can help you ease the process and provide a solution to meet your needs today and in the future.