Originally published in
Reprinted with permission

RECAP Conference Update:
Lessons From Installing A New A/P System

One of the benefits of attending a conference, or for the matter, reading a publication such as this is that accounts payable professionals can learn from others’ mistakes. They can find out what works and what doesn’t before undertaking a new project. At Recap’s conference this year that theory was taken one step further when several of the prior year’s speakers were invited back to talk about the progress of projects implemented during the past year.

One such speaker was Mike Guancione, a vice president from Prudential. Guancione, who is responsible for accounts payable as well as payroll, treasury, and ledger processing, spoke about the implementation of a new accounting system and the lessons learned through the process. At the close of last year’s conference the accounts payable module was installed and ready to go.

Before enumerating on the lessons learned from this particular endeavor, Guancione began by offering some guidance for implementing any new accounts payable project. He suggests:

• Taking a big project and breaking it down into smaller, manageable modules
• Evaluating the risk of each piece
• If resources are limited, pick those pieces with the lowest amount risk

By following these simple rules, accounts payable professionals will give themselves the best chance for success. With those accomplishments may come additional resources to complete other tasks.

Lessons Learned

Guancione offered the following tips based on his implementation experiences. He cautioned that if the project was large and an implementation partner, such as a large consulting firm, was used, care should be taken when choosing that partner. It should be someone with strong experience in the area and intimate knowledge of the software being installed. He told the audience that the first partner selected by Prudential was ultimately asked to leave. This may actually have been the first lesson he learned although his remarks were concentrated on the actual experience. His points included:

• Reengineer first, install a new system later. It is better to fix problems before installing a new accounts payable system; otherwise, you will simply be programming bad procedures and your results will not be optimal. Some accounts payable professionals take advantage of a new system implementation to review existing practices and eliminate inefficient procedures.
• Assign the very best people to the project. Occasionally managers view a project as a dumping ground for poor performers. Others are concerned if they take their good people and put them on the project, the daily workload will suffer. Putting under-performers on a project does not ensure success for the program but rather tends to increase its chances for failure.
• Think of innovative ways to keep your team intact as delays hit the project. It is inevitable that this will happen and you do not want these talented people to become discouraged and leave. He recommended techniques such as stay bonuses etc.
• Stress programs are worthwhile especially if the project requires overtime and/or there are tight deadlines. Tempers tend to get frayed when people are under an unusual amount of pressure and anything that can be done to alleviate this will be worth its weight in gold
• If implementation is dependent on others outside the department, get their requirements and commitments in writing. This will help avoid future disagreements over unwritten promises, especially when the accounts payable professional has no real leverage over people in the other departments.
• Communication throughout the project is critical. Communication throughout the project is critical. Guancione humorously suggested it is a good idea to have all communication in writing even if it means sending memos "to conform our conversation today."
• Whatever the original time frames given, double them. Project and scope creep will inevitably work their way into the process as new enhancements are identified. This will also leave room for error as nothing, especially when it comes to technology, ever proceeds on schedule. Whatever can go wrong will.
• If the implementation involves other modules, assume ownership. Guancione says accounts payable will be blamed when something goes wrong anyway, so you may as well step up to the plate and be prepared.
• If an intern is going to be used in any project, he recommends adding a little levity.
• There is a big marketplace for talented people, he cautions, so keep your best people happy- or someone else will.

Having survived the implementation of a new system, Guancione is not resting on his laurels. He says that having completed the installation of the new system, he’s been assigned new challenges for 12998. They include the task of integrating his department with purchasing and developing some easy- to- use tools such as Lotus Notes. Perhaps at next year’s RECAP conference we’ll learn whether the lessons learned during the system implementation were of any use when facing what is probably the biggest professional change, most accounts payable managers will ever encounter: integrating with purchasing.

"RECAP Conference Update: Lessons From Installing A New A/P System" ©1998 Institute of Management and Administration, Inc. For subscription information call (212) 244-0360 or send e-mail to SUBSERVE@IOMA.COM

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