Why some technology projects fail.

We know that people can make or break an organization’s purchase-to-pay strategies. I previously wrote two related posts about the influence of executives and staff members (see below). However, even when the right people are on board, a technology project might not turn out as expected. Following are three reasons why, tips, and specific advice for an AP automation pursuit.

Unrealistic Expectations

The trouble can begin early on when an organization thinks technology will solve all their issues, but they fail to identify the root causes of problems. As an example, AP Now’s 2016 State of Invoice Processing Survey (www.ap-now.com) reveals slow internal invoice approval is the most common ongoing invoice issue experienced by organizations. Technology is not the magic answer for this. While technology can make approvals easier to do, the slow people will probably continue to be slow unless they are held accountable to a defined timeline. 

Tip

Determine your biggest pain points and explore why they occur. Do you need a change in policies and/or procedures? Do employees need more training? To what extent will technology help resolve the problem?

Haste

Rushing to select and implement a technology solution often means that an organization fails at multiple levels during a project. You might overlook elements needed by stakeholders or the complete picture of how a process works (and where new technology is most critical). If you skip doing thorough system testing, manageable hiccups can turn into emergencies when the system goes live. 

Tips

  • Assign the project manager role to someone who is equipped with project management knowledge and skills.
  • Document existing processes, stakeholder requirements, goals, etc.
  • Address how you will resolve any conflicting requirements between stakeholders. What will take precedence?
  • Develop and follow test scripts to ensure the technology works as expected before fully implementing. 

Lack of Communication

No list of pitfalls is complete without the proverbial lack of communication. This could mean forgetting to revise relevant policies and procedures, a lack of training to system users, failing to communicate with affected suppliers, and more.

Tips

The obvious action is to turn this around by communicating effectively throughout the organization and with suppliers. 

  • Note who will be impacted by the technology and, therefore, need training.
  • Offer a clear place to go if people have questions.
  • Explain the purpose of the new technology.
  • Monitor how users are handling the technology and the common errors.

Related Blog Posts

The previous posts about the influence of 1) executives and 2) staff members are:

  1. Two issues plaguing B2B payments
  2. Staff members are a wildcard
Frustration with a technology project is more likely to occur if your organization does not do solid advance planning.

Frustration with a technology project is more likely to occur if your organization does not do solid advance planning.

AP Automation Advice

When it comes to AP automation, respondents to AP Now’s 2016 State of Invoice Processing Survey recommend:

  • Ensure you will have dedicated IT support throughout the project.
  • Try out/demo different solutions before committing to one.
  • Verify that all your applicable systems will be compatible with each other.
  • Anticipate that AP will receive a spike in questions until users are comfortable; plan staffing accordingly.
  • Be assertive with suppliers regarding rules for invoice submission.
  • Do a longer pilot period before rolling out to everyone. 
“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. ”
— Bill Gates

About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With more than 15 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…

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Two issues plaguing B2B payments.

Internal culture and tools drive the operations of AP and procurement, but these things can also be roadblocks. A culture that is forward thinking and innovative will lead an organization to adopt the right technology to streamline purchase-to-pay processes. One that resists change and remains stuck on old ways risks a downward spiral. This can even occur with billion dollar companies; following is a real-life example. Call it a case of duct tape, wire, and chewing gum. What can happen if your organization resembles this one?

Duct Tape, Wire, and Chewing Gum

The MacGyver way is how “Paul” describes operations at his $2B employer, a large North American manufacturer. He wryly remarks that employees use duct tape, wire, and chewing gum to fix a problem because no one wants to fix the process at the root of the problem. Management is satisfied with ignoring an issue because, as Paul sums up, “Bill and John know how to work around it, and, as long as Bill and John are here, they think we are fine.” 

Inefficiencies 

The company uses a huge spreadsheet file (originating at least a decade ago) to manage certain purchasing activity. Because it repeatedly caused Paul’s computer to crash, the company actually purchased a second computer for Paul, so he could keep using the file. Making matters even worse are company acquisitions for which executive management has allowed the acquirees to retain their legacy systems indefinitely. 

Excess Costs

Like many other organizations, AP is paper based at Paul’s company. He shares that a recent audit required them to make more than 2500 invoice copies for auditor review. In addition to printing costs, they incurred the cost of retrieving the original invoices from storage (with a records management company) and putting them back.

Paul proposed new AP technology, not realizing that the decision makers lacked basic information about payment strategies. He had to go back to square one.

Personnel Hurdles

Most employees have been at this company for decades. Paul says the cafeteria dining room is a “sea of gray” (as in hair color). Millennials do not stay around long. They quit because of antiquated processes and the lack of a similar-age peer group with whom to connect.  

Further, Paul explains the impact of his retired employee, Judy, who basically took all operational and company knowledge with her. His new hire, Kathy, struggles to grasp the labor-intensive processes and systems. Given their limited resources, no one has time to train her. Everything has taken longer to get done. Poor processes + new employee = reduced productivity. 

Does this look familiar? Organizations that do not equip employees with the right tools risk losing staff and, ultimately, revenue.

Does this look familiar? Organizations that do not equip employees with the right tools risk losing staff and, ultimately, revenue.

What to Do

“Traditional” culture and outdated tools are tough to battle. Nevertheless, I believe in making an effort. Tips include:

  • Ensure procedures are documented, so knowledge is not lost when someone retires. This is the easy part; the real problem is outdated processes.
  • Calculate the process costs of your most tedious processes and share with management along with potential solutions. Educate them on what is possible.
  • Encourage management to explore why you do “X” and whether it is still justifiable beyond “Because we’ve always done it this way.”
  • Talk with your bank, other providers of payment-related products and services, and your industry peers to learn more about the options. 

Access more information and tips on payment strategy.

Up Next

What happens when management is ready to expand electronic payments, but employees stand in the way? Take a look at the next blog post.

About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With more than 15 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…

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When reorganization is a good thing for your career.

What does reorganization mean to you? In the workplace, it often means a disruption or forced change, but there is a different side. In your professional life, it can mean a renewed focus on working smarter and initiating positive change.

I have been reading the book The Organized Mind—Thinking Straight in the Age of Information Overload by Daniel J. Levitin. After the science-heavy content in part one, it flows with stories and common sense advice to help anyone reorganize how they work and live to achieve greater focus and efficiency.

Manage Your Time

Like Bob Kodzis, the keynote speaker I heard in May (see related blog post), Levitin confirms the myth of multitasking, explaining how it: 

  • makes us demonstrably less efficient
  • increases adrenaline and the stress hormone cortisol

Cell phones and electronic communication have worsened the multitasking epidemic, conceiving the expectation that people should be reachable all the time. Levitin warns that our constant email activity “gives us a sense that we’re getting things done and, in some cases, we are. But we are sacrificing efficiency and deep concentration when we interrupt our priorities with email.” He and other experts recommend:

  • setting aside a few concentrated times during the day to address email
  • utilizing email filters and other tools to organize and prioritize
  • training friends and coworkers to not expect immediate responses to every message

Externalize Information to Clear Your Mind

Our brains can only remember so much. Levitin reminds readers to off-load information to external sources. Making to-do lists and jotting ideas when you think of them are standard tactics. Extending the practice to your business contacts will help you keep track of people. 

Record when you last connected with someone and what you discussed, including any personal tidbits. This can jump-start your next communication. If you can also add a personal touch (“How is your garden doing?”), it demonstrates your interest in the person, which can strengthen the relationship.

Choose change. Take steps within your professional life to reorganize and work smarter.

Choose change. Take steps within your professional life to reorganize and work smarter.

Reorganize Your Work Environment

A clear, organized mind also needs an orderly environment (physical and electronic) in which everything has a designated place. Levitin encourages readers to carefully create categories and then sub-divide. This approach is a stress reliever and time saver. Now comes the P-Card tip...

If you manage a P-Card program, apply categorization to your policies and procedures. Some organizations fail to begin their P-Card P&P with a table of contents (TOC), which makes content harder to find. Others include a TOC that is too short or vague to provide any real value. As I suggest in my P-Card P&P guide, develop a TOC that:

  • offers meaningful primary topics and sub-topics
  • arranges topics in a logical order
  • reflects what users seek

Think about what you experience regularly, such as frequently asked questions and common mistakes. Make those topics more prominent.

Finally, if you find yourself at the receiving end of unwelcome workplace reorganization, embrace the concepts above—managing your time, incoming information and environment—to focus on initiating a brighter future. 

See also a related blog post about rediscovering the leader within you. 

About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With more than 15 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…

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