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POWER

YOUR

PEOPLE

INDUSTRIAL STRENGTH HUMAN RESOURCE MANAGEMENT SOLUTIONS

Secrets of Selecting the Right Software System


By: Karen Speirs

...how could he avoid having implementation costs spiral out of control? Anthony makes a note to focus more on implementation in his vendor interviews.

Is it just me, Joshua, or do all these software programs look the same to you? Anthony and his IT manager emerged from the meeting room feeling exhausted. This was their third payroll software demo of the day, and the vendors were all starting to blur together. It was four months into the RFP process, and they didnt seem any closer to deciding which program was best suited to take care of payroll for their citys 2,500 employees. I think we should ask the vendors for more details, Joshua suggested. I can add those new details to our spreadsheet and we can see how they all compare. I cant stand the thought of extending this stage of evaluation. We cant go back to scanning endless responses. We need to make a choice. This has already taken up enough of our time, Anthony argued. But its an important decisionthis is going to be a long-term relationship so weve got to find a vendor we can work with. $3,000 per Employee for Implementation? Anthony and Joshua agreed to meet after lunch to plan their next steps. Anthony, a finance manager who liked to save money, pulled his sandwich out from his briefcase and settled down at his computer for another lunch in front of the screen. He spent the next 20 minutes researching payroll software online. One story made him cringe: An HR software implementation in Collin County, Texas, that was costing $3,000 per employeeand it wasnt finished yet. That had to be a career-limiting move. But how much should an implementation cost? Did Anthony have enough in his budget? And how could he avoid having implementation costs spiral out of control? Anthony made a note to focus more on implementation in his vendor interviews. Implementation: The Hidden Factor Then Anthony remembered that his former colleague, Nancy, was doing a payroll software implementation in a neighboring county office. He phoned Nancy and inquired about her progress. We learned the hard way that this isnt just a decision about software, Nancy explained. The first vendor we selected was a disaster when it came to implementation. They were very rigid about the new system; they expected us to change our processes to suit the software. I dont need to tell you what making all those process changes would do to our HR and payroll teams: It would be enormously stressful for everyone, not to mention time-consuming. We were anticipating some changes, but we felt backed into a corner. It was their way or the highway or else wed have to pay extra. The people they sent didnt understand government payroll, and they werent ready to help our people through the change process. It was a complete mismatch. We were able to get out of the contract as we considered this to be a nonperformance issue. Then we made meeting the implementation team part of our requirements before we looked for a new vendor. It was a tough decision, but it was absolutely the right one.

When implementation goes sideways, you can waste a lot of time, money and staff energy.

From the StarGarden Knowledge Library

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POWER

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INDUSTRIAL STRENGTH HUMAN RESOURCE MANAGEMENT SOLUTIONS

Finding the Right Fit How could you be sure the same thing wouldnt happen again? Anthony asked. We asked to meet the vendors implementation teams beforehand. We asked what their change management process was, and how many of our own internal processes would have to change to get the functionality we wanted out of the system, Nancy explained. We learned that there arent huge differences among the software systems; the difference is in the people their attitudes, their understanding of our situation, and their willingness to be flexible. The vendor we ultimately chose talked about being a long-term partner...and they walked the talk. Sure we had to change some processes, but only the ones that we all agreed needed updating. It was a much more collaborative approach. They helped us overcome resistance among some of our staff who opposed the process changes and made sure we were completely comfortable when the system was up and running. Im pretty confident that well continue to get great service from these people, because they took the time to get to know our business and our people. So how important is implementation in the whole scheme of things? Anthony asked. Its one of those hidden factors, she replied. You dont know how important it is until youre in the middle of it. When implementation goes sideways, you can waste a lot of time, money, and staff energy. Fortunately, we caught the situation early so the damage was minimal. But I was really worried when I thought we were stuck with that first vendor. When implementation goes well, you really appreciate the quality of the people involved. My advice is get a sense of the service youll receive from the vendor after the sale is made before you make a decision. And in my experience, its best to actually meet the people who do the implementation work. Its an entirely different situation when the implementation people work with you, rather than the one-way dictatorial style that we experienced with that first vendor. Hanging up the phone, Anthony underlined his earlier note. Maybe implementation would be the deciding factor.

You wouldnt hire someone after just meeting with the recruiter, would you? This is no different; its all about the people and the fit with our team. Theyre going to be leading a pretty important change management process, so we need to get this right.

Meet the Implementers Weve got to meet the implementers, Anthony told Joshua at their meeting after lunch. You wouldnt hire someone after just meeting with the recruiter, would you? This is no different; its all about the people and how they fit with our team. Theyre going to be leading a pretty important change management process, so we need to get this right. Anthony and Joshua were already well into the RFP process. They had issued an RFP, collected responses, invited selected vendors for product demos, and created a shortlist. At Anthonys suggestion, Joshua called Nancy for more input about exploring implementation in advance. My mistake was to go with one of the biggest vendors as our first choice, Nancy explained. We thought it was the safe thing to do. They had a big team in for the demo with us, and we thought that meant they had all the bases covered. What we didnt realize is that the larger companies can be more rigid. Theyre all about following a set process. The vendor we ended up going with is smaller and we feel that we have a close relationship with them. We know who answers the phone when we call for support, and we feel like were a valued customer. So in the end, going with the big vendor wasnt at all the safe thing to do. Nancy paused. Maybe what you need are my lessons learned from past implementations. They have saved me, time and again, from spending a lot more than we needed to. Ill send them over to you.

From the StarGarden Knowledge Library

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INDUSTRIAL STRENGTH HUMAN RESOURCE MANAGEMENT SOLUTIONS

Buoyed at the prospect of making some progress in their search, Joshua returned to his office and started phoning the vendors. He was surprised when the first two were resistant to his request. We dont allocate resources until contracts are signed, one protested. We cant guarantee that the people you meet will be on your implementation team, explained another. Our implementation methodology is solid, they both argued. Youll get the same level of service from whoever is on the implementation team. Joshua recalled Nancys complaints about the rigid approach and lack of flexibility from her original vendor. He got a better response on his third call: Absolutely, we want you to meet our implementation team. We hope to be working with you for a long time, so you should meet our people. Joshua booked an appointment for the following week. He had a feeling their search would be over very soon. How to Avoid Over-Spending on New Software Implementation Like businesses, governments are facing increasing pressure in todays changing economic climate to do more with less. This includes avoiding over-spending in the implementation of new software programs. Some government groups are paying millions of taxpayer dollars on HR/Payroll software solutions. Collin County, Texas, was reported to have spent $5 million implementing a new HR software program for its workforce of just 1,700 employees and the implementation wasnt even complete (Collin County Observer, February 16, 2008). So is that just the cost of doing business, or should you expect implementation to cost less?

...implementation of your payroll software solution shouldnt be a long, painful and expensive process...having spent a good deal of time and effort in making your selection, its critical that you give the same amount of diligence to the implementation project

In fact, implementation of your payroll software solution shouldnt be a long, painful, and expensive process. You should consider implementation when you evaluate software payroll programs. Having spent a good deal of time and effort in making your selection, its critical that you give the same amount of diligence to the implementation project. Implementation Pitfalls Heres Nancys list of pitfalls that she worked hard to avoid during an implementation project to ensure it was fast and cost-effective. 1.) Unclear leadership. It is crucial that there is clearly defined project leadership on both the client and vendor sides. On the client side, the project lead must be someone with the authority to make decisions. Clients who bring in outside consultants to lead the project on their behalf are often hamstrung by someone who has taken on a leadership position but lacks insight into how their organization works, and lacks the power to make necessary decisions. Without clear leadership, you risk improper deployment of team resources and unclear prioritization. This often means extra time and cost have to be incurred to bring the project back in line with its original goals. 2.) Unclear goals and timelines. Along with strong leadership, the project team needs clear plans and timelines that are worked out in conjunction with the vendor project manager. Regular team meetings are a must to keep priorities straight and to share the knowledge that the team members will be acquiring on a daily basis.

From the StarGarden Knowledge Library

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INDUSTRIAL STRENGTH HUMAN RESOURCE MANAGEMENT SOLUTIONS

3.) Lack of re-evaluation. Once timelines are set, they need to be re-evaluated on a regular basis. Although you may not want to delay the project, extending a deadline may save time, money and frustration in the long run.

...It is crucial that there is clearly defined project leadership on both the client and vendor sides

4.) Improper or unclear role assignments. Although a person may be excellent in their day-to-day role in the organization, a project is a different scenario. Everyones skills and interests must be assessed to properly allocate resources. If the most qualified resource is a person that lacks buy-in, it can ultimately have a negative impact on the team. 5.) Bad attitudes. It is important for the team leader to carefully monitor the attitudes and level of buy-in for the project. Putting in a new software solution is hard work. It requires people to make changes they may not feel are necessary or important. Some people may actually try to slow down or stop the project. To avoid this, the team needs to feel ownership of this software implementation. Their concerns need to be heard and considered. They need to be reminded of the benefits and the ultimate goal everyone is working towards. You should expect the vendors implementation team to help make this happen. 6.) Lack of upper management involvement. Your organizations leaders need to remain involved. The team may need them as resources as the project progresses for negotiations with the vendor on specification of end results for modifications. It is important to keep all levels of the organization in the loop as information may be required or project dates may change. You certainly dont want upper management to be shocked by a delay. 7.) Lack of resources. This is the primary cause of delays and errors. The length of the project is directly proportional to the number of dedicated resources assigned to the project. It is difficult to get a new HR/Payroll solution up and running when the resources available are trying to give the project an hour or two after completing their regular full-time jobs. 8.) Under-utilizing external resources. Use the resources available from the vendor. Their team has skills and experience that will be beneficial to your team. Although these resources do have a cost attached, you may save time and money in the long run by using them. For example, you may have a question about how to fix an incorrectly entered piece of data, or have tables and reports that have to be customized. By the time your staff have figured out how to correct it themselves, they may have wasted half a days work...and created unnecessary aggravation. Situations like this can be dealt with by your vendor in a matter of minutes. Dont forget, your teams time is worth money, too.

The implementation process was about a lot more than learning to use the software. They helped us deal with important people issues

9.) Not enough testing. You can never test too much. It is a mistake to skip proper testing. Along with testing certain components, you must also test in parallel against your existing system (at least two or three complete pay runs). Proper testing gives all parties involved the confidence needed to turn off the old system and work with the new one. With proper planning, constant re-evaluation, and awareness of what pitfalls to avoid, your HR/Payroll implementation can run smoothly and be a success.

From the StarGarden Knowledge Library

www.stargarden.com

POWER

YOUR

PEOPLE

INDUSTRIAL STRENGTH HUMAN RESOURCE MANGEMENT SOLUTIONS

Walking out of their meeting the next week, Anthony and Joshua had a lot more pep in their step than the day before. The members of the implementation team had been familiar with the challenges of a government environment and responded well to specific queries. Most importantly, they showed interest in forming a long-term relationship. If you have any issues after implementation, Ill be the one taking your calls, the lead guy said. We understand this is an important change management process, and we know how to make it work. Speaking with the vendors references reinforced Anthony and Joshuas impressions. The vendor had a number of long-term clients who spoke highly of the implementation process and their ongoing support. They helped us overcome resistance among some of our staff who really didnt want to change their routines with the new system, explained one client. The implementation process was about a lot more than learning to use the software. They helped us deal with important people issues that were essential to our success with the new system. Stopping at his office door, Anthony gave Joshua the thumbs up. Their search was over.

...the vendor we ended up going with is smaller and we feel that we have a close relationship with them. We know who answers the phone when we call for support, and we feel like were a valued customer. .

From the StarGarden Knowledge Library

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StarGarden Group 3003665 Kingsway Vancouver, Canada Phone: Website: Email: +1 604 451 0500 www.stargarden.com info@stargarden.com

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