Corporate Financial Systems: Why We Keep Getting It Wrong

Ask any CEO what they dread most and an ERP implementation would probably rank near the top of their list. Anecdotally, you hear many corporate executives lament about their decision to move forward and replace their legacy systems with an ERP. ERPs were promised to be the magic elixir that would make businesses be lean and move quickly. For many executive sponsors, the new system not only did not deliver on its promise, it turned out to be a career killer in many cases.

Well folks, as Walt Kelly once proclaimed, "We have met the enemy and he is us!" It's not the ERP software that's the problem. The technology that exists today is better than it has ever been. It is we who have failed to evolve how we do and view our jobs.

We have access to more data that at any time in human history. There are very few topics that you cannot find data on the internet if you know how to conduct a proper search. Yet with all this data, we still have information silos. Why? Data is not information. Only some parts of your organization are adept at turning disparate pieces of data into actionable information. We are not taking full advantage of the technology we have at our fingertips. An ERP application is just a tool. It can no more make your business cost efficient and lean than a hammer can construct a building. Like a hammer, it's most effective when in the hands of a master craftsmen. Well, Mr./Ms. CEO, the master craftsmen of your company is you.

Just because other Fortune 500 companies chose a specific ERP does not mean that ERP is right for you. Again, the ERP is just a tool. What's more important is your vision of how you want your company to be. If you want your company to be cost efficient, financial data must be available throughout multiple layers in the company not just the executive suite.

Financial data is critical to every single part of your enterprise. If you want to see your organization transform into an industry leader, you must get this data into the hands of as many people in your company as is feasible, train them on how to identify cost and revenue drivers, strengths and weaknesses and empower them to make decisions to mitigate risks and capitalize on opportunities.

Buying an expensive golf club is not going to make you a better golfer. It will just make you poorer. Investing in golf lessons will be more effective at turning you into a better golfer. Better clubs are just a tool to help you achieve that goal. Buying a fancy new ERP will not transform your business. Defining your vision and selecting the right technology to help you achieve your vision is the first step on the path to success.