Implementing an EPM solution is essential to transforming the finance practice in order to stay ahead of market demands. However, if your data, processes and competencies are not optimised, the software will provide fewer benefits than expected.

Many companies mistakenly believe that purchasing and implementing software that promises to enhance the finance function will not only allow the business to become more effective, but that the software solution will help them overcome the challenges faced by their finance teams. In reality, technology is only one aspect of the transformation puzzle – albeit a vital one – and there are a number of other crucial factors that need to be taken into consideration to ensure that companies can get the full benefits offered by modern EPM solutions.

Don’t ignore the human element

An EPM solution is merely a tool. Many companies neglect to involve all stakeholders affected by an EPM implementation before, during, or after the software has been decided on. While it may seem simple to get people involved in an EPM project, it can be challenging to make sure that everyone the implementation touches is included in the relevant decisions.

Throughout the project life-cycle, stakeholders will have varying levels of input. Some will become subject matter experts, others will provide insight into complex business processes, and most, if not all of them, will help shape the final product. The organisation must therefore start by understanding level of impact the project will have on every team or department, and engage with them throughout. EPM implementations will affect Finance, Information Technology, Accounting, Project Planning, and Operations teams, to name a few, so understanding their needs, requirements and links between the different teams is essential.

According to a recent CFO Research study, 17% of organisations don’t make the end-user experience a critical factor in selecting and implementing financial software, and many organisations fail to adequately ensure user adoption after an implementation. Stakeholder engagement is essential to driving consensus and gaining buy-in, and will ultimately lead to better processes in the long term. Each team should be kept up to date at all times, with constant communication providing the information they need to understand the overall goal of the project, the project scope, and their expected involvement or responsibilities throughout the project life-cycle.

Vision and Goals

Only once the stakeholders have been identified and engaged can the organisation establish a clear understanding of what the EPM system will achieve and how it will support the company’s strategic goals. To create a clear path going forward, it is important to also clearly define what you will not be accomplishing during an EPM project.

Establishing a clear vision and goals is easier said than done, as success factors will vary from team to team. Some will look for improved performance times, or reductions in cycle times, while others will require enhanced process efficiencies. In order to complete a successful project, all stakeholders should agree to a list of agreed upon success factors.

Risk management

Every project has some ambiguity, and that uncertainty requires an approach that deals with risk. Risk management is not just about how a company will react to identified risks, but also about ensuring that the organisation has a process in place to monitor, control, and respond to potential risks.

Don’t forget the data

Data is one of the most common barriers to success in an EPM implementation. Even before they embark on their EPM journey, companies should gain a true understanding of what data is available to them, where it is located, the quality of the data, and how difficult it is to access. Additionally, they may want to use this as an opportunity to fully understand the reasoning and processes, both functional and technical, behind the organisation’s current data practices.

One of the main selling points of an EPM system is that it provides companies with a single and reliable source of truth, but the business will first need to cleanse and possibly migrate data to gain that visibility. Organisational data is often stored in different formats and owned by different stakeholders, so this step is vital to the success of an EPM implementation. While it might seem daunting to find, consolidate and clean up the company’s data, doing so before the new EPM system is installed will simplify the implementation and position the business for gains in the long term.

Find a partner that fits

You can’t have a good relationship with your EPM partner unless it’s the right fit. There are many products and providers out there, but most will not be able to provide the kind of expertise and support to meet specific business needs. Depending on the size and scope of the project, EPM implementations can take months or even years to complete, so having a partner that can dedicate time, skills and resources throughout is essential to success.