3 Documents that will save you a lot of money

Every company that is working to grow its business will have to eventually look at automating time-consuming processes. The implementation of business systems to automate accounting, inventory tracking, human resources, and other processes, are examples of the most basic steps companies take to make their operations more reliable and their data more manageable. While these systems are used by most companies, large and small, I still see costly mistakes done during the selection and implementation of new systems and even upgrades to existing ones.

There are plenty of examples that show what happens when systems are selected and deployed in a thoughtless manner. In the last case I personally saw, a system was bought and implemented at a cost of almost $100,000. However, the system was a bad fit for the company’s business and did not support the strategic direction the company wanted to take. The integrator tried to bend and twist the system in an attempt to make it work for my client, but it just did not have the functionality that was needed. In the end, the company decided to use the system only as an accounting ledger and we found a better solution that not only supported the company’s new operations but offers plenty of room to grow. The new solution cost was less than $10,000.

Business systems implementation is an area where small companies can use a simplified version of the best practices followed by large organizations to confidently select and deploy system solutions while minimizing the risk of costly mistakes. A system implementation project at a large company will rely on many teams assuming responsibility for different aspects of the projects, at various stages, all under the coordination of a Program Manager team diligently watching the completion of every task and sub-task. While this can be a long and resource-intensive process, it can be condensed to 2 main areas of concern: Planning and Execution.

A small company may not have the resources of a large organization to look over the planning and execution of systems implementation, but they can use these 3 critical documents to eliminate many of the most common mistakes I have seen: Market Requirements Document (MRD), Technical Requirements Document (TRD) and Project Management Document (PMD). Generating these documents will force you and your system’s integrator to think in depth about the problem you are trying to solve, the people and processes affected and will ultimately provide a guide to ensure you take your implementation project to a successful conclusion.

Meet your three new best friends:

Market Requirements Document (MRD)

This document is used to capture the needs of the company in plain terms. What are the challenges the company faces with its current processes and systems, and what does the ideal scenario look like? This document is a statement of expectation without regard to potential technical limitations.

Technical Requirements Document (TRD)

This is typically written by the person or team in charge of identifying the best solution to the problems stated in the MRD. It lists the tools or solutions that will be used, how they will be used by each person or process, and required future changes to hardware, software or processes.

Project Management Document (PMD)

The objective of this document is to ensure clear visibility to all the tasks that need to be completed in order to have a successful deployment. This document is typically created using Program Management software such as Microsoft Project and lists the tasks, as well as when each task needs to be completed and by whom.

One last point: There is no absolute rule about the format and depth of details you should include in these documents. They can be as basic or as detailed as you decide to make them, the important thing is to take the time to think through the entire process; from planning through completion.