At HRU we recently replaced our 1980s era phone system with a new modern system that was a major leap forward in technology and bells and whistles. The old phones worked fine, so why would we spend the money on a new system to replace something that functioned fine the way it was? It was an opportunity for us to leverage the newer technology to provide us with very in depth data about how our phones were being used. As a recruiting and staffing company a large part of our success relies on the ability of our recruiters and sales staff to find openings with companies and then find the talent to fill those openings. Phone calls, even in the age of email and social media, is still the most critical component to closing deals and selling candidates on taking those positions. It is a numbers game. The more phone calls made, the more placements happen. It is a very direct correlation. So being able to report on specific activity on our phone activity is very valuable information. Taking that information one step further and creating some rewards and incentives around that activity that drives our business leverages that technology investment we made and provides a return on investment. That should be the ultimate result of any investment in technology that you make. If you spend $50,000 on a shiny new accounting system you should be able to safely expect to streamline enough processes and create enough savings to pay for the system within a few years, otherwise you have done something wrong. There are a few places that companies tend to go off track that may cause them to not get that ROI they want when implementing new technology, here are a few I have witnessed:
Overbuying-maybe you are a small company and were talked into that $50,000 accounting system when really all you needed was a $300 version of Quickbooks. You may not be large enough to realize the ROI on such a large investment. If that is the case you are probably buying too much system that you probably will never use.
Poor Implementation-I have seen many companies that buy the latest and greatest and then never fully implement the software or the functionality of a piece of hardware. Having someone QUALIFIED leading your implementation (someone who has done this before) can have a tremendous impact on what kind of ROI you will be able to see on the investment. I have seen major components of software packages that save huge amounts of labor such as import functions or other process automating features that were never turned on because the person implementing the system didn’t take the time to learn how to do it.
Training-You have to have at least one, if not several, gurus on a system you are implementing. Spend the money to train them right and get them to learn the extra bells and whistles, not just the basics. A system startup can be chaotic so the natural thing to do is just focus on basics and then life happens and no one gets back to implementing the fancy stuff that sold you on the new system in the first place. It is sometimes very valuable to even do some follow up training 6 months to a year after the new system is installed to remind everyone about those features that you might not have had time to focus on when starting up.
Using the new Data to drive decisions/behavior- So now the system is up and running, make sure you learn the reporting tools and figure out how best to use this data. The goal of my group is to provide accurate data to management and business owners so they can act on that information. They may use the information to run contests that reward the behavior they need to succeed, like the phone calls. They may use the information from a financial report to decide to discontinue a line of business or to increase the attention they give a particular customer because the data shows they are the most profitable.
Be smart about how you invest those technology dollars and make sure you do the best job you can to justify those expenditures once you do take the plunge.
Justin Himebaugh leads the accounting department at HRU, (or The Necessary Evil Group as he calls it). A Graduate of the Haworth school of business at Western Michigan University, Justin has specialized in systems implementations and streamlining the accounting function for the companies he has worked with. Besides having a well rounded skill set when it comes to accounting he can still hold his own in the pool if a game of water polo breaks out. You can follow him on Twitter, @necssryevil
Recent Comments