One of the frequently asked questions of the FundCount sales team is, “How much time is this implementation going to take me?” We love this question! It is key to any successful implementation.

Our expert implementation colleagues can suggest an answer once we are engaged with a client, but the underlying substance of this question is, “Does the client have the right resources and sufficient time to do the job?

Successfully accomplishing a project depends on a variety of factors, including team members working together, straightforward communication, strategic goals, and a clear plan. When it comes to implementing a software program, planning is a vital component that contributes to success.

Understanding the basics of an implementation plan, the importance, the risks of foregoing a plan, and ways to ensure your software provider has a valid methodology are critical to give your business the best chance of implementation success.

Importance of an Implementation Plan

Implementation plans are important to ensure that actionable steps are being taken by the necessary team members. First, implementation plans can help engage your employees. When there is less confusion surrounding what needs to be done and why, you are creating an engaging environment and focusing your employees on the task at hand. In addition, these plans encourage collaboration between your team and the software provider. To be successful, there needs to be a collaboration between both teams to work out the fine details and implement the software with added ease.

Methodologies that focus on the implementation of software programs also contribute to transparency throughout the process. Management doesn’t want to be blindsided by unexpected costs for professional fees or materials. A strong implementation plan will outline all key costs with an expected timeframe. Furthermore, large companies have an obligation to run major decisions by shareholders and the board of directors. A defined plan with clear goals allows you to gain support from upper management.

Understanding Implementation Methodology

FundCount approaches implementation from both a managed and a guided methodology. In a managed implementation, FundCount takes full responsibility for the project, while in a guided approach, the client plays a more active role with FundCount’s support.

An implementation methodology in both cases is a comprehensive plan detailing the steps needed to install and use a software program. It assigns tasks, sets deadlines, and outlines necessary resources like labor, materials, and professional fees. A well-structured plan fosters collaboration between your team and the software provider, reducing errors and miscommunication.

Risks of Skipping an Implementation Plan

Foregoing an implementation plan can lead to significant risks, including increased costs and project failure. The more time you spend in the implementation stage, the higher the costs associated with professional fees and the lower productivity you will have.

A project that doesn’t have a clear direction and milestones that individuals work towards is more likely to get stuck in the implementation phase, resulting in an underutilized system or bypassing the project altogether. This is also a costly detriment as there are upfront fees when implementing software programs.

Avoiding Common Implementation Pitfalls

Every institutional investor is different, so there’s no one-size-fits-all approach to workflow processes or setting up system parameters. Vendors and clients must work collaboratively to avoid the four common pitfalls of implementing a new accounting solution: the deployment conundrum, data security risks, the unpredictable journey of project management, and hidden costs.

1. Be Wary of Consultants
   Sensible clients will conclude that procuring additional resources to assist in the implementation, particularly if they have a small, or even a one man, team is the answer.But be wary of hiring a consultant to do the implementation. Only the client themselves truly knows their structure, their assets and their data. An outside consultant will take time to learn this.
2. The Deployment Conundrum
   Family offices are sophisticated investors with unique needs, and the primary concern often revolves around IT infrastructure. Some prefer private servers for offline access, while others opt for cloud solutions, often favoring private clouds for enhanced security. FundCount’s deployment-agnostic approach allows for implementation on any IT infrastructure, meeting all security requirements.
3. Data Security Problems
   Family offices handle highly sensitive data and are concerned about unauthorized access. FundCount addresses these concerns with full-cycle encryption, ensuring no access to client data without explicit authorization. This guarantees data accuracy and integrity, vital for any accounting tool. Many family offices worry that if they implement a unified general ledger, the IT professionals working on the project will know too much about their assets and partnerships. Understandably, this is not acceptable.
4. Lack of Dedication
   The specialized and complex nature of back-office accounting software requires a team effort. The software vendor takes on the bulk of the work, but ultimate success is accomplished when the client has an active role in the process. A dedicated project manager oversees the process, ensuring flexibility and rigor. Transparent communication between the vendor and client is crucial for success. A team of experts is then selected to proceed with the accounting solution’s implementation. However, throughout this entire process, communication is key. Without transparent and ongoing conversation between the vendor and the client, no implementation approach can succeed.
5. Hidden Costs
   While it may be tempting to stay with an old accounting system to avoid a project that may end up costing more than the initial budget, there are multiple steps a family office can take to ensure that implementing a new and more efficient accounting solution is not pricey. From our experience, one of the biggest factors in determining whether the implementation process ends up costing higher than expected is the degree of involvement of the family office. If the institutional investor is involved from the start, through open communications and a team effort, the implementation process need not be pricey. FundCount’s approach ensures the implementation process is efficient and cost-effective.

Foregoing an implementation plan can lead to significant risks, including increased costs and project failure.

Advice for Bigger Operations

For larger clients, with more complex structures, multiple asset classes and many data sources, assigning a project manager to oversee and command internal resources is also key. Where investment analysts and accountants have competing demands and operate under different constraints, this is essential.

The reality of any implementation, even the best planned, is to expect the unexpected, and be cooperative and flexible in finding solutions. This is a particular necessity where there are third parties, such as custodians, brokers, banks and alt managers, directly or indirectly involved. They do not march to the client’s or FundCount’s orders and a well managed, well planned team will be able to handle the constraints this imposes.

FundCount has learned many implementation lessons over the years, and the greatest of these is that it is human resources that make the difference, not the software!