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Are you in the middle of an ERP project and considering whether it is time to also make changes to your Financial Planning platform? Here are nine specific dos and don'ts that will guide you toward a successful outcome.
Two system projects simultaneously? Impossible – or is it? Before you begin, there are several things you need to consider.
The most important consideration of all is: Do you have the resources to handle both projects simultaneously?
If you decide that you have the necessary resources to handle both projects at the same time, there is good news. As you continue reading, you will get nine dos and don'ts to keep in mind when making changes to your Financial Planning platform – specifically in Workday Adaptive Planning – while your ERP project is still a moving target.
Let's dive in.
1. Establish an overall structure
It is useful to get a sense of how the overall organisational structure will look going forward, as this affects how both planning models and reports are built. Usually, the project team has a good idea of the structure from the very beginning of an ERP project, as this was often the driving force behind the ERP upgrade. Set up the organisational level structure so that reporting makes sense. The ERP system can then mirror the Workday Adaptive Planning organisational structure. You can potentially create a temporary structure to make it easier to bridge over to the new one.
2. Do not waste energy worrying about non-critical details
Workday Adaptive Planning takes into account that the level of detail with which an organisation plans, reports and tracks actual figures is rarely static in your General Ledger. Therefore, the system is built to allow you to change your registration framework and add new accounts. After go-live, you will have plenty of time for all the details, so you should not worry about small, non-critical details, even though it can be easy to get caught up in correcting company names, individual mappings and other minor things.
3. Do not waste time automating integrations
It does not make sense to spend your energy building and customising data integrations for systems that are changing or even being phased out. Therefore, you should instead use Workday Adaptive Planning's flat file upload function while implementing the new ERP system. And remember not to neglect the data validation process.
Additionally, make sure to utilise the built-in 'Structure Update' function to automate the renaming and restructuring of accounts. If you are performing major model reviews, you should use the included sandbox for a quick test before going into production.
4. Build the underlying top line and operational models
Companies typically perform complex operational modelling (Revenue, COGS, Personnel Planning etc.), which is quite strategic for the business and built outside the financial model. It is worth considering these thoroughly and building them in advance in Workday Adaptive Planning, knowing that they can later be integrated into the financial model.
5. Use your FP&A platform as a mapping and audit tool
Most ERP upgrades and re-implementations involve a new chart of accounts. When this happens, organisations will need to convert or map the old one to the new one. While Excel can be used for mapping, it is best to store it in one place and then apply it to your data on a centralised platform where everyone can access it. This applies to both calculations and the mapping itself, which Workday Adaptive Planning can facilitate via attributes. This mapping also eliminates rework, as the mapping table will be a critical part of the ERP implementation and will need to be carried out regardless. Leveraging it will help keep financial planning synchronised with the ERP system.
Also, make sure to use Workday Adaptive Planning's mapping functions as an audit tool, as this has a clear and immediate benefit.
6. Create a single reporting environment
Workday Adaptive Planning can provide accounting and finance with a single reporting environment for both before and after data, as well as for new versus old allocations. This is possible because data from both the old and new ERP systems can be easily imported, mapped and processed. Consider it an opportunity to improve and reshape the way reporting and analysis are performed – and therefore avoid simply converting old reports to the new ERP system or the updated Workday Adaptive Planning platform.
7. Remember to be flexible
It is important that you ensure communication with your key stakeholders during your projects – especially the accounting department. This is crucial, as changes in scope and design are likely to occur along the way. If you have control of the ERP implementation, you will be able to adapt your Workday Adaptive Planning model to accommodate the changes.
It is also a good idea to always maintain a connection between accounting and FP&A. There will often be changes in hierarchies (e.g. cost centres and chart of accounts), and it is therefore crucial that the new accounts are added to your Workday Adaptive Planning reporting.
8. Keep it simple
Complexity makes the learning process harder and longer for other users in the long run. Start with a detailed plan for your projects and keep specific outcomes in mind while doing so. But do not try to do everything at once. Start with a list of three must-haves. In short: Do not overcomplicate things – small iterative changes are most effective.
9. You should not wait
Changing ERP system does not mean that the organisation stops its financial planning, or that the board and management do not need reports during the projects. The work must continue. Many organisations that postponed an overhaul of FP&A processes report that they regretted this decision, as they had to endure using spreadsheets for an additional one to two years because their company's ERP project was delayed. And during this period, financial management suffered under outdated processes and tools.
For experienced finance professionals, the benefits of proceeding with a planning system upgrade can outweigh the risks and costs of waiting for an ERP implementation to complete. And it is wise to draw upon experiences and valuable knowledge – dos and don'ts – from others who have been there before.
The article you have just read originates from our partner Workday. We have read their content, translated it into Danish and adapted the points to your benefit, so you can become more knowledgeable about Workday Adaptive Planning, AI, ML etc. We certainly hope you found the article beneficial. Interested in getting hold of the original? Then hop over to Workday's learning universe.
Choose a reporting and planning tool for your SaaS business
Cloud-based financial planning and analysis tools like Workday Adaptive Planning can help solve the 'classic' challenges that most SaaS and subscription businesses struggle with. They can also support the finance function in achieving their ambitions to deliver output that elevates the entire business.
If you are considering breaking free from Excel tyranny and moving into a cloud-based reporting and budgeting tool, please feel free to reach out to Partner Morten Boldsen for an informal discussion about what we can do for you and the technological foundation of your finance function.