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7 Secrets the Healthiest Project-driven Organizations Know That You May Not
Welcome to Your World
It’s tough. But someone has to do it.
Some people have to live with the complexities of a project-driven organization without the tools they need. Or do they? Could this be you? Is your world fashioned by a combination of these irritating scenarios that make you want to pull your hair out?
- Project managers and accounting can’t agree on true project costs, so your bidding suffers.
- Your margins are so tight that you’re concerned for the risk involved in certain projects.
- You can’t be sure the ones you do take are profitable.
- The information you get from accounting is unreliable because they pull from disparate systems that don’t match and are difficult to reconcile and consolidate.
- Tracking progress of projects is hard due to unsophisticated software; it’s difficult to determine when and where to allocate resources.
- It can take a month to get invoices out, so your cash flow suffers.
- Heaven forbid if you get audited or have ongoing compliance issues. Getting information for yourself is hard enough, let alone for someone looking over your shoulder.
- When you need a report, you don’t know which department’s numbers are most accurate. After you roll the dice (rock, paper, scissors works too), it takes forever trying to create the report you want.
- You’re hamstrung on critical decisions. It takes so long to get reliable data (you’re still not sure it’s accurate), when you do, the window of opportunity has passed.
At the end of the day, one or more of these keeps you up at night. Wouldn’t it be nice to have some peace of mind about your projects and business? The truth is, you don’t have to do it this way. There’s a way out. Make a commitment to implement the following seven “secrets.”
SECRET #1: Use tools designed for the job
My woodshop teacher always told us, “Use the right tool for the job. Not one that might do it, but one designed for the task.” After someone broke a screwdriver trying to hammer it like a chisel, we got it.
This is also true for your business tools. You must choose tools—machines, equipment, technology, and software—that fit your needs. For instance, architects and engineers choose a measuring device that fits their task—either one that measures floor plans (architect’s scale) or one that measures longer distances (engineer’s scale). They also choose a CAD program that handles the complexity of their projects and gives them the control they need. It seems simple enough.
The trouble comes when decision makers choose tools that might do a task, but in the end, they don’t measure up or they break—or the people using them break—because the tool isn’t designed for the job. Only after people and tasks suffer does the decision maker “get it.”
A project-driven company’s accounting tools is a good example. Low-end proprietary accounting software solutions aren’t designed for the complexities of project-driven operations. They eventually break. Core modules of some mid-market accounting packages may handle large numbers of complex projects, but its non-core modules and lack of integration make it incapable of effectively handling practices such as revised budgets, project hierarchies, task structures, cross-organizational reporting, advanced payroll, remote access, and aiding project management. Ultimately, the people using them tend to break.
High-end Enterprise Resource Planning (ERP) packages often require expensive configuration and customization to meet the demands of project organizations. A vertical accounting package—one designed for a particular project-driven industry—is ideal, yet there still may be problems integrating that system with a company’s existing, more-familiar software tools even with extensive training. In the end, it is not uncommon that something or someone breaks.
This is why the right accounting tool for the project “job” is usually a tool that easily integrates with the other software tools your people already use and with which they are already familiar.
SECRET #2: Enable stakeholders to use the tool most appropriate to them
Recently my son and I built a deck on our house. Well, actually, my son did most of the work. He used to work for a contractor and I’m not exactly known as “Mr. Fix It.” When we got to cutting boards, I pulled out my old hand-held circular saw.
“Oh, this is your saw?” he asked. “This will be difficult to use.” I had a “sidewinder” saw, and he was used to a “worm” or “hypoid drive” that delivers more power and torque, resulting in a much faster and easier cut. He grumbled through the cutting portion of the job.
Both tools were designed for the job, but one tool fit the experience of the worker better than the other. Software tools are also like that. When an organization takes away the tool people are used to and says, “Here, learn this new tool,” people often grumble.
The answer is to ensure that all your software tools—accounting, project management, financial reporting, spreadsheets, email, web portals, office productivity, CRM—can be tied together and utilized to perform key tasks. Then people use the tool they are most familiar with to enter or access data. For instance, executives, project managers, and office workers won’t need to learn a new unfamiliar accounting program to find real-time data, enter it, report on it, or send out updates. Programs like Microsoft Outlook, Excel, Project, and Web Portals can all be used for tasks related to project management and accounting.
The outcome is improved efficiency, productivity, and employee morale.
SECRET #3: Set up your tools and people to draw on the same set of data
Most of the project-focused organizations I talk to express the need to have confidence in their numbers. “I need reliable, real-time information to make critical decisions,” is a common concern I hear.
When such companies have disparate systems from different departments, they can’t tell which numbers are the most reliable and up-to-date. They live with islands of isolated data that are almost impossible to manage. Since the interpretation of that data is very subjective, department heads might as well arm wrestle over which data is accurate.
Drawing on the same set of data that is accessible by all is essential to quickly getting real-time accurate information into the hands of executives, controllers, and project managers. How can your people be truly accountable for project estimating, budgeting, staffing, scheduling, management, and crucial decision making without timely and reliable data at their disposal (based on what is happening now, not what happened weeks ago)?
A central, secure database solves this problem. For small-to-midsize companies, there are other options to accomplish this besides an expensive ERP system.
Not only will this ensure the most dependable information is made available to all, it gives you the ability to tie together your accounting software and other software tools that are familiar to your people.
SECRET #4: Ensure that all your tools are integrated
Once all your software tools and people draw on one set of secure data, they are now able to truly integrate and talk to each other. You can build one seamless solution.
I regularly hear stories from clients who struggle with non-integrated systems. “With the lack of integration, we had project data silos and management blind spots,” said an IT Director of an architectural firm. “Visibility of critical data by staff members—let alone holding them accountable to project staffing, scheduling, and budgeting—was virtually impossible.”
“Without fundamental integration of accounting, project management, and time and billing, we had poorly managed projects, a lack of control, and non-existent cash reconciliations,” said a Controller of a health science consulting and research firm. “We needed the automatic processes that integration brings to improve invoicing, cash management, the tracking of labor and expenses, and project profitability.”
Duplicate and excessive data entry is a common symptom of a non-integrated system. The solution to these problems is to get the different tools to automatically talk to each other the first time data is entered and enable a variety of tools to access the data.
Do you think the idea of a seamless solution is pie in the sky? Well, think again. Here are just a few ways it can happen. Imagine these scenarios applied to your business:
- No more duplicate data entry or access. The data you create in one application automatically passes to others. When project managers create a project in their tool of choice, that information immediately flows to the accounting software and vice versa. Accounting staff have the same flexibility. Projects can be initiated and updated in more than one program. In addition, customer information is integrated into project and financial tools and is one click away.
- No more lack of confidence in information. You ensure a uniform version of information across your company. One interactive information tool draws all operational and financial data (projects, business development, inventory, customers, accruals, revenues, budgets, and more) together from various other tools whose data is housed in one unified database. No more arm wrestling. You can make critical strategic decisions with confidence.
- No more fretting about time and effort to produce and distribute in-depth reports. You incorporate a technology that enhances a tool you already use (Microsoft Excel) to stay in sync with your accounting system. It allows quick and easy report creation, flexible formatting, and delivery to users anywhere throughout your organization for review, analysis, or decision support.
- No more hassles collaborating and sharing documents. You set up a collaborative tool that enables your users to coordinate calendars, organize documents, and receive important notifications with ability to set role-based document controls. Users can manage their documents within a program they already use (Microsoft Office).
- No more wasted time with inventory control. You use a bar-code-based tool to record inventory issues and counts, which reflects automatically in the balance sheet.
SECRET #5: Create role-based visibility for all your stakeholders
“These requests are driving me crazy,” a controller at an engineering firm complained after talking to a project manager on the phone. “Why does everything have to be routed through me?”
Why, indeed?
Unfortunately, this scenario is all too common. Companies get completely bogged down with an endless stream of routine tasks and ongoing requests for information because only a handful of people have visibility and access to the data.
Do these issues and complaints sound familiar to you?
- Timecard entry, expense reports, and database queries take an inordinate amount of time and paperwork.
- The flow of routine requests from employees for business facts and custom reports burns out your accounting staff.
- Customers, suppliers, and other partners are pining for payment data, project status, and inventory levels.
- Teamwork is difficult to foster when it’s so cumbersome to share information.
- Project managers, field managers, and executives can’t easily find project and profitability data or analyze performance to make informed business decisions.
Something has to give.
And something will give unless you implement the fifth secret. Here’s how it works:
You must align the right information with the right individual. The way to do that is to add a web-based portal tool to your system that draws on your one database and integrates with the other tools you already use.
Using a web-based tool opens up the flow of meaningful business information—anytime, anywhere-—to general employees, managers, executives, customers, suppliers, and other partners and will free up valuable resources in your IT, accounting, and support departments.
But it’s not an uncontrolled flow. Choose a tool that enables you to assign role-based privileges to information, so data stays secure and each stakeholder has access only to the data appropriate to them. Here are the benefits and some of the strategic value you will receive:
- You eliminate the hassle of common tasks and requests: HR tasks, and more, can be done online; employees enter time cards with automatic routing for approval. You create an employee and manager self-service culture as stakeholders view, change, approve, and evaluate information. No more of those pesky requests for business facts, custom reports, etc.
- Teamwork is fostered with information-sharing and collaboration tools: Deploy one web portal site and enable employees to work together on documents and store, share, and edit common Microsoft Word and Excel files. Choose a tool that allows you to create and execute version control and workflow rules.
- Project and Field Managers gain free access to project and profitability data: Take your project and accounting data that is already integrated and link it to the web-based portal for real-time access to pertinent data.
- Executives get free access to business metrics: Create individual key performance indicators for each executive, depending on their area of responsibility that can be kept current. When conditions change, their view is refreshed and information remains accurate. Choose a tool that enables them to drill down and expose the underlying causes of problematic conditions.
- You can share information with customers, suppliers, and other partners: Even stakeholders outside your company can have secure, appropriate access to the business information they want to see, e.g., payment data, order status, and invoice information.
SECRET #6: Insist on a highly flexible set of tools
You can have the most high-powered set of tools in the world, but inevitably they won’t meet every business need you have—unless your toolbox (your software/IT system) is highly flexible. And even then, some robust ERP systems, although flexible, require expensive configuration and customization to fit specific business requirements.
One answer is to deploy a set of tools—a system—that is highly configurable and has the ability to integrate with third-party products and is supported by an implementing partner who (1) has deep system/product knowledge and expertise, (2) uses the same system within their own organization, and (3) also supports an extensive list of pre-integrated, third-party products. This will virtually eliminate any need for customization.*
A flexible system can:
- Adapt to your business requirements – Maximizes your ability to have a system that is closely aligned to your existing business processes.
- Create custom reports – Without customizing your system, it gives you ability to easily customize reporting to meet specific business needs. These could include customized work-in-progress reports, job-cost overviews, budget-variance reports, revenue reports, and many more.
- Integrate with other products – Allows you to take advantage of third-party tools that integrate with your system, such as a project management dashboard, a document management module, an audit utility that assists with Sarbanes-Oxley compliance, a corporate tax module, a barcode-based inventory control tool, and more.
A flexible partner:
-
Puts industry-specific expertise at your finger tips – They know your industry well, have deep domain expertise, and already support a long list of pre-integrated third-party software.
SECRET #7: Don’t allow short-term costs to prevent long-term gains
The seventh secret is to focus on the long-term gains of acquiring integrated, flexible, and project-organization-specific software and technology tools, rather than to overly focus on short-term cost to the company.
Undoubtedly, the initial price of software is an important consideration, but more critical is the long-term gains derived, potential future savings and ROI, and whether it and the partner you choose can deliver strategic value to your organization. To save money on short-term cost to the detriment of reaching your goals is shortchanging your company and your employees.
Second-time buyers say the product and the partner are more important than price.
The Standish Group did a study of companies with less than $200 million in annual revenue to determine the success rate of IT projects. Standish found the majority of IT projects among this survey sample were not successful. Twenty two percent were canceled, and 50 percent were challenged. In addition, it also surveyed the top ten criteria for selecting software for these companies—twice. The findings are eye-opening.
For their first software selection project, companies named the price of the software and its implementation as their number one criterion. But for the second survey, price had dropped to the number five position. The top three criteria were now (1) the support of the implementing partner, (2) the partner’s performance record (previously number ten), and (3) the ability of the software product to fit the business. Apparently the lesson these companies learned was that product fit and partner expertise would serve their long-term goals better and were more important criteria than price.
When establishing a budget for a software and IT project, project-driven companies need to be aware that their goal should not be merely to acquire a new accounting, project management, or CRM system, but to create strategic business value for the entire organization.
Long-term gains include strategic business value.
In addition to gaining new features and benefits of software, such as ease of use, efficiency, integration, and improved functionality, companies should seek software and IT solutions that deliver long-term strategic values like the following:
Strategic Benefits
- Competitive advantage
- Meeting customer demands
- Speed to market
- Leadership
- Company growth
Financial Benefits
- Good return on investment
- Reduced costs
- Increased revenue
- Increased productivity
- Improved cash flow
Cultural Benefits
- Improved employee morale
- Increased empowerment
- More teamwork & collaboration
- Flexibility
- Innovation
- Accountability
Your World Transformed
Knowing these seven secrets is only the first step. The healthiest project-focused firms—architects, engineers, researchers, pharmaceutical labs, software/IT companies, professional services firms, make-to-order manufacturers, and contractors—not only know these secrets but regularly implement them within their organization.
They consistently purchase and use tools that have these characteristics. They:
- Are designed for their types of projects.
- Are the most appropriate for each stakeholder.
- Draw on the same secure database.
- Tightly integrate with each other.
- Have a role-based-privileges system of use.
- Are highly flexible and configurable, with the least amount of customization necessary.
The healthiest firms also set this priority when purchasing their tools:
They do not allow their concern for a low-cost solution to prevent them from realizing long-term strategic business value.
The truth is you don’t have to live with the complexities of a project-driven organization without the tools you need. Change starts with developing a new mindset about how to procure and use the tools in your organization and then having the will to take action.
The question is, can you afford not to act?
_________________________
About the Author
Michael Camp is Marketing Director of Synergy Business Solutions, a Microsoft and Intacct partner that implements and supports financial managment and ERP software—whether on-premise or in the cloud—particularly for project-centric organizations with project accounting software needs. As Synergy’s lead marketer since 2006, Michael frequently talks to and interviews CFOs, Controllers, IT Directors, and Project Managers of project-driven companies on the problems they face in financial and project management. He is responsible for communicating specific accounting software solutions (Microsoft Dynamics SL and Intacct) to project-driven, distribution, subscription-based, and nonprofit organizations.
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The Zune concentrates on being a Portable Media Player. Not a web browser. Not a game machine. Maybe in the future it’ll do even better in those areas, but for now it’s a fantastic way to organize and listen to your music and videos, and is without peer in that regard. The iPod’s strengths are its web browsing and apps. If those sound more compelling, perhaps it is your best choice.
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The Zune concentrates on being a Portable Media Player. Not a web browser. Not a game machine. Maybe in the future it’ll do even better in those areas, but for now it’s a fantastic way to organize and listen to your music and videos, and is without peer in that regard. The iPod’s strengths are its web browsing and apps. If those sound more compelling, perhaps it is your best choice.
Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.
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Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.
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Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.
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Between me and my husband we’ve owned more MP3 players over the years than I can count, including Sansas, iRivers, iPods (classic & touch), the Ibiza Rhapsody, etc. But, the last few years I’ve settled down to one line of players. Why? Because I was happy to discover how well-designed and fun to use the underappreciated (and widely mocked) Zunes are.
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Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.
This is getting a bit more subjective, but I much prefer the Zune Marketplace. The interface is colorful, has more flair, and some cool features like ‘Mixview’ that let you quickly see related albums, songs, or other users related to what you’re listening to. Clicking on one of those will center on that item, and another set of “neighbors” will come into view, allowing you to navigate around exploring by similar artists, songs, or users. Speaking of users, the Zune “Social” is also great fun, letting you find others with shared tastes and becoming friends with them. You then can listen to a playlist created based on an amalgamation of what all your friends are listening to, which is also enjoyable. Those concerned with privacy will be relieved to know you can prevent the public from seeing your personal listening habits if you so choose.
Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.
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Hands down, Apple’s app store wins by a mile. It’s a huge selection of all sorts of apps vs a rather sad selection of a handful for Zune. Microsoft has plans, especially in the realm of games, but I’m not sure I’d want to bet on the future if this aspect is important to you. The iPod is a much better choice in that case.
I’ll gear this review to 2 types of people: current Zune owners who are considering an upgrade, and people trying to decide between a Zune and an iPod. (There are other players worth considering out there, like the Sony Walkman X, but I hope this gives you enough info to make an informed decision of the Zune vs players other than the iPod line as well.)
Apple now has Rhapsody as an app, which is a great start, but it is currently hampered by the inability to store locally on your iPod, and has a dismal 64kbps bit rate. If this changes, then it will somewhat negate this advantage for the Zune, but the 10 songs per month will still be a big plus in Zune Pass’ favor.
If you’re still on the fence: grab your favorite earphones, head down to a Best Buy and ask to plug them into a Zune then an iPod and see which one sounds better to you, and which interface makes you smile more. Then you’ll know which is right for you.
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This is getting a bit more subjective, but I much prefer the Zune Marketplace. The interface is colorful, has more flair, and some cool features like ‘Mixview’ that let you quickly see related albums, songs, or other users related to what you’re listening to. Clicking on one of those will center on that item, and another set of “neighbors” will come into view, allowing you to navigate around exploring by similar artists, songs, or users. Speaking of users, the Zune “Social” is also great fun, letting you find others with shared tastes and becoming friends with them. You then can listen to a playlist created based on an amalgamation of what all your friends are listening to, which is also enjoyable. Those concerned with privacy will be relieved to know you can prevent the public from seeing your personal listening habits if you so choose.
The new Zune browser is surprisingly good, but not as good as the iPod’s. It works well, but isn’t as fast as Safari, and has a clunkier interface. If you occasionally plan on using the web browser that’s not an issue, but if you’re planning to browse the web alot from your PMP then the iPod’s larger screen and better browser may be important.
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The Zune concentrates on being a Portable Media Player. Not a web browser. Not a game machine. Maybe in the future it’ll do even better in those areas, but for now it’s a fantastic way to organize and listen to your music and videos, and is without peer in that regard. The iPod’s strengths are its web browsing and apps. If those sound more compelling, perhaps it is your best choice.
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Zune and iPod: Most people compare the Zune to the Touch, but after seeing how slim and surprisingly small and light it is, I consider it to be a rather unique hybrid that combines qualities of both the Touch and the Nano. It’s very colorful and lovely OLED screen is slightly smaller than the touch screen, but the player itself feels quite a bit smaller and lighter. It weighs about 2/3 as much, and is noticeably smaller in width and height, while being just a hair thicker.
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