In-depth

Effective operating implements

Finance | Jon Jorgensen | 1 Oct 2006

Jon Jorgensen explains the benefits of a professional project manager when planning and implementing new software systems.

It has been interesting to observe the growing number of organisations turning to project managers to oversee system change programmes from selection through to implementation.

In the past, charities would often engage the services of a project manager to assist in finding a system and carrying out due diligence, but it was then down to the charity to see the project implemented. This is where problems can set in, mainly due to the amount of time needed to run a project day-to-day and more importantly the lack of expertise to do so.

Case study 

For the Royal Hospital for Neurodisability, the commissioning of an external project manager was vital in helping implement its accounting package. Although there was a great deal of experience within the department, time was a real issue for the Hospital and the resources were not available to adequately undertake the project.

"All of our staff have existing roles and workloads and it was obvious from the start that no one had the time to dedicate to the project. You need someone in place that has a good overview of the project and can take responsibility for seeing it through," says Richard Charney, chief accountant of the Hospital. "We are a large organisation so it was imperative to bring someone external in. This is a sizeable investment and we have to get it right."

Unlike many organisations, the Hospital had staff with previous experience of such projects and understood the level of work required was too great for the organisation to take on internally, and that today's software solutions were increasingly sophisticated. "Modern accounts systems are so flexible these days. There is never any one right or wrong way of doing something, which means you need to find the best method in the first place and make sure you have all the reporting and other tools you require," says Charney. "Our project manager sat with our staff to find out what their requirements were, documenting all the existing procedures, what we do and how. He then checked this against the software to ensure it replicated what we were looking for."

The project manager does all the in-depth work that needs to be done, that we just would not have the time to do. However, every organisation undergoing this process has to realise that it still has quite a lot of input into the project and takes responsibility for its success.An external project manager has experience. They are the specialist that does this for a living, day in and day out. Charney believes the relationship between the organisation and project manager is very important if the implementation has any chance of succeeding. "You have to know that you can work with this person as well as the software supplier. Temperament and approach are important and you need to know that they have the skills and that they match the way that you need to work."

As a result of making the right choice in external providers the project has kept to timescale, with the project manager now taking responsibility for ensuring that staff have the relevant training. "We anticipate that the project will be completed on time and within budget - and this is down to having engaged the services of the right people and the right supplier," concludes Charney.  

A cost-benefit analysis

Charities frequently change key systems every seven years, many less frequently. In addition to accounting software, more and more charities are starting to embrace customer relationship management (CRM) systems to improve fundraising and event co-ordination. Combined with the general diversity of software available and the modern implementation methods, even a system costing a few thousand pounds can require a high level of configuration or integration. It is unlikely that a charity will have this level of experience internally.

The main issue with engaging a dedicated project manager is often cost, but this is a short-sighted approach. Without a dedicated project manager, organisations often end up taking a micro approach to the project, focusing on the day-to-day issues and failing to look at the overall picture. The result is an ill-defined system that may not meet the desired expectations and usually leaves both charity and supplier frustrated. The former does not have the system they require and the latter continually has to incorporate extra functionality or development work over and above the agreed package. A project manager will help avoid these issues, organising resources, planning and setting the system delivery as well as cutting through the issues to focus on delivering a system that will meet the business needs and processes of the charity. The project manager will keep tight control on costs and resources, ensuring neither spiral out of control.

A good project manager will also take a different view of the charity, analysing its processes and questioning what it does. This can be impossible to achieve if you are embedded within an organisation. The project manager will ensure that the software supplier delivers a solution that will meet the core processes, which is absolutely crucial considering that some suppliers are still very product focused rather than process focused.

A highly skilled project manager will also be very experienced in producing business process flows on the back of their in-depth analysis. This will provide the charity with a clear view of how they operate and how their processes can be improved with the implementation of new technology. This pre-implementation stage is a critical starting point and can make or break a project - but the experienced project manager will have been through these processes time and time again. They will also be knowledgeable about the software solutions in the marketplace and will be able to find the best fit for a charity based on their business analysis.

Needle in a haystack? 

While engaging a skilled project manager clearly has many benefits, there is the problem of finding such a trusted individual in the first place. Charities can start by asking their auditors as most will be able to give advice or supply details of someone who specializes in this area. There are also specialist charity sector project management consultancies such as Bluespark and Ask Charlie. Their experience of dealing with many charities and delivering successful software projects often outweighs the cost of employing them. The end result is the speedy delivery of a system that meets the charity's requirements, thereby increasing return on investment.

Once a charity has highlighted two or three potential managers they should request CVs from freelancers and discuss past client projects with them. The latter also applies to consultancy-based managers. It is also worthwhile asking to speak to their clients to get an unbiased account of past success stories. Whichever route is taken, discuss the costs up front and get these clearly outlined in writing. The groundwork should also be set out prior to commitment from the charity, such as the planned schedule, ensuring key personnel are available throughout the lifetime of the project and the indepth business review and process flows already discussed. Once this has been achieved a contract is signed between the charity and the project manager committing to deliverables.

With a project manager in place and the software solution chosen, he or she will split the project into manageable work packets. These will then be allocated to the relevant resources such as the software supplier, internal staff or the project manager themselves. As the work progresses, the project manager will constantly test the system against the process flows supplied to the software provider to ensure it delivers the benefits set out in the planning stage. Throughout the whole implementation process, both parties will report to a sponsor, usually the FD within the charity.

While the right project manager can take the day-to-day pressures off the charity, the ultimate responsibility for the success or failure of the project is still in the hands of the charity. As the project sponsor, it needs to have regular meetings and be kept abreast of progress. It is imperative that the organisation has a level of involvement that takes an elevated view of the project. Where the project manager comes into their own is in the planning and implementation of those plans, avoiding the charity getting weighed down with the intricate detail.

The charity should feel comfortable with the chosen project manager(s), The project management methodology utilised by the supplier should be applicable to modern day systems. Finally, the charity should make sure it dedicates time to ensure that the final implementation meets requirements.

Jon Jorgensen is managing director of Asyst Solutions Ltd 

Tweet

Directory: Asyst Solutions Ltd
Who's Who: Jon Jorgensen