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Top 3 reasons for failed small business Finance system implementations (and how to avoid it)

1. Poor planning;
2. Change management and specifically training and handholding of users;
3. Competence to deal with change and complexity;

Far too often the software platform whether it be Xero or Sage gets blamed for a dysfunctional or sub optimal finance function.
Whilst my preference for a platform for small businesses is always Xero, I often find that the biggest cuprint of problems is a failed system implementation.

In my experience these are the three most common reasons for failed or sub optimal finance systems implementations.

1. Poor planning
If you are going to make system changes you need to have a very clear idea of why you are making the change.
What specific problems and pain points do you currently have that need to be solved. This must lead to a clear problem statement, and future state that you are aiming for.
In simple terms you get what you measure.

2. Change management
Although this is a complex topic, I would say the most important element here is the proper training and handholding of users. Upfront training is critical, but what is even more important is an on-going handholding phase, that can last up to 3 months, the purpose being to ensure that users are able to use the system in their environment to solve their problems.

3. Competence to deal with change
The finance team | member running the finance function often don’t have the skills or time to manage and implement change. The wisest approach is for the system change no matter how big or how small should be treated as a project, with a start date and and end date, and to find a reputable system implementation vendor that has a track of success in implementing projects.

In summary then, plan well, embrace change and work with an expert.