How to select an FP&A solution that’s right for you
Organizations, on average, change their FP&A solution every 8-10 years, so it’s essential they get it right. But with such a time lag between changes, you can’t always rely on what you did previously.
So how do you make sure you choose the right FP&A solution for your organization?
Why is it essential to get your FP&A decision right
Your FP&A solution helps inform crucial business decisions to give you a competitive advantage. Boosting how you analyze, report, and plan for any scenario and drive decision-making on everything from processes to investments.
So choosing the right system is critical. But to do so involves more than simply a shortlist of options. It takes a significant investment of resources, expertise, and time from across your organization. As you have to be confident the solution works for everyone who needs it. But that can come with risks too.
What are the risks?
Any new investment comes with risk. So identifying a process for selecting a new FP&A solution is undoubtedly one way to help mitigate that risk. And to reduce the risks surrounding a new implementation even further, you need to know what to look out for when choosing a new solution.
The most obvious risk is the wrong solution. One that doesn’t deliver what you or your people need. Often caused by a lack of research or due diligence. Often organizations will shortlist only companies they’ve heard of or have used before, rather than looking for suitable options for their organizations’ needs. However, although typical, this isn’t the only risk you face.
Other common risks involved in vendor selection are:
- Overbuying or overspending on features and functions you don’t need
- Overpromising where vendors set unrealistic delivery targets or expectations they can’t meet
- Underwhelming introduction of a solution that doesn’t achieve end-user buy-in or adoption
The reality is software is no longer the wild west, and most solutions are very good, but they may not be good for you. So it’s about doing enough research to understand what they offer, how it fits your needs, and what risks are associated with each option. But how do you do this?
How do you choose the right FP&A solution for you?
The truth is that will differ from one company to the next. But there are ways to control that process. In our recent webinar, we spoke to Craig Schiff at BPM Partners about their Vendor Selection Methodology.
Any organization can use this process to create a structured evaluation process that helps define requirements and evaluate options thoroughly. The process has three key stages:
- Best practices: defining the steps to performance management project success
- Key requirements: using BPM’s quadrant to determine your needs and how well solutions align with them
- Evaluation: How to know you are looking at the best in breed vendors for your needs
To get a complete understanding of BPM’s Vendor Selection Methodology, watch our recent webinar, where we talk to Craig Schiff, BPM Research’s CEO and founder, about his pioneering selection process. Discussing in detail his approach to FP&A solution selection, the common mistakes most companies make, why cutting corners is not always the right thing to do, and why it’s essential you consider more than just the most well-known brands. Ultimately you need to find a partner and a solution and company that is right for your business. With these tips in mind, choosing your FP&A solution should be a much simpler task.