How an EPM implementation works, and why the software comes last.

Why EPM implementations fail

Alex0:04If you're about to set off on an EPM implementation programme, here are the 3 or 4 things you should be asking yourselves internally. Brad, you've been doing this for 17 years. Give us 2.

Brad0:17Yeah, I think the first thing you need to understand is, do you have the capacity internally to run this project? I see so many EPM implementations fail because they have a big laundry list, a big wish list of things they want to do. But at the end of the day, they don't have the capacity internally to be able to do that.

Brad0:36Another thing that typically trips up EPM implementations is data quality. I think we'll touch on this a little later in this discussion. If your data is not clean, the likelihood that your implementation is going to be successful is relatively low. The reality is, if the data going in is really bad, the data coming out is really bad. And if the data coming out is bad, you're not going to be able to run your organisation efficiently, right?

Brad0:59So it's can you do it, and is your data clean? Then all the other things typically take care of themselves. Technology selection, budgets. You can normally get budget from anywhere if you can justify it. But those are the 2 fundamentals, I think, that drive a truly successful EPM implementation. What are your thoughts on that?

Cutting the scope to what matters

Alex1:19100%, I couldn't agree more. From my side of the fence, where I'm sitting, it's who needs to be involved and who doesn't. Your stakeholders. What is their value proposition to the outcome you're looking to achieve? Which leads me to the most important one. What are you actually trying to achieve?

Brad1:37Yes, true. True, yeah.

Alex1:38And what is your real scope? What are you really trying to get over the line? More often than not, you've got the big list of requirements. At the end of the day, that list of requirements can actually be whittled down to about 15%. And that's the real value driver for your organisation.

Alex1:53Let's think about it. We've been doing this for a combined 30 years of finance transformation. What's the typical thing you see? Oh, we've been on the same tool for the last 20 years, we just need to change it. That's not a transformation.

Brad2:07No.

Alex2:08That's a technology replacement initiative.

Brad2:10Correct.

Alex2:11Be very clear and concise about why you're changing the technology. That could be a financial planning and analysis tool, a consolidation tool, a management reporting tool or a statutory consolidation tool. It could be account reconciliation or going over to an AI tool.

Brad2:32True. True.

The biggest EPM implementation myth

Alex2:33I'd love to hear, because you've been doing this for a long time, what is the number 1 EPM implementation myth?

Brad2:48I think you touched on it already. It's not understanding the process you're going to be enabling through these technologies. You need to really understand your process and what processes you want to wrap around these toolsets to drive that change.

Brad3:07A lot of the time I see CFOs talk about reducing their close from 30 days to 10 days, as an example. A lot of the time it's not the technology that does that. It's understanding the business, the process and the data that goes with it. That's the biggest lever of change, as opposed to the technology. So it's really understanding that.

Choosing the EPM software last

Alex3:28Yeah, I always say the technology can't make you a coffee, right? It's not one size fits all.

Alex3:37So going back to it, say I'm about to embark on an implementation for EPM, ERP or data warehousing. Be really clear and concise on what you're trying to solve in the business before you buy the technology. That doesn't mean don't go and look at them. But make sure you're marking them on the growth they're going to enable for your business. With that in mind, Brad, what's your view?

Brad4:06It's a classic thing. It's an 80/20 split, right? You've got to automate 80%, or enable 80% of your function through technology, and 20% you can manage externally.

Alex4:18There you go.

Brad4:19And that 20% can flex. So any number of toolsets can drive the changes you're looking for. But it's really, like you said, being very concise about what you're trying to do and implementing it well, with a properly defined roadmap. At the end of the day, that will drive the change, no matter what technology you throw at it.

Brad4:38It's the best analogy I can give you. A lot of the time, people buy Ferraris and put a donkey in the engine.

Alex4:47I love that.

Brad4:48Yeah, they put a donkey in the engine and expect it to go as fast as a normal Ferrari. But maybe you can talk me through what you've experienced, and build on this analogy a little more.

Alex4:57I think it's simple, right? If you're trying to figure this out, give us a call. We can help.