7 pitfalls to avoid when selecting CPM software

Looking for CPM software? Avoid these pitfalls!

Many companies that consider implementing new CPM software directly contact a few suppliers for a demo, but do not properly prepare the quest for a new system. Although it might seem unnecessary, taking a step back and defining the requirements from scratch really pays off. It gives you the opportunity to profit from new technology and optimize workflows and processes. In this blog, our CPM Advisory experts tell you all about common pitfalls and how to avoid them.

#1 Requirements of the CPM Software are not clear

To start the cpm software selection process, many companies send out inquiries asking how people are working today and how they would like to work tomorrow. Doing this out of the blue is just a bridge too far. It is very important to obtain an overview of which functionalities are offered by the various systems. The company vision, your KPIs and the way you want to monitor them are equally important for deciding how this should be met by the new CPM software. It is helpful to discuss these matters at the start of the project. Gathering input from the business by using various tools (like inquiries, workshops, etc.) is a good second step.

#2 No support from the business for new CPM Software

Sometimes the search for an alternative CPM software solution is prompted by external reasons: the current CPM software will be withdrawn from the market, new legislation requiring additional reporting, etc. Chances are there is not enough support for these changes throughout the whole organization. In such cases, change management and engagement are needed to show everybody how a new CPM system will make their life easier.

#3 Company not ready for such a big CPM project

Depending on the maturity of a company, they might not be ready to start and run a project of this size. Knowledge, expertise, and experience with project-based working are vital to determine the project layout, for example:

  • Where to start?
  • What resources are required (in terms of people, tools, money, and time)?
  • How to obtain commitment from the management?
  • Who should be involved and in which role?
  • How to value people by the project organisation?
  • What skills are required for the project manager?
  • How to monitor the selection and implementation process?

To make the project successful, the management should be made aware that their commitment is required. As well as their support to provide the optimal space and conditions for carrying out the project.

#4 No real CPM selection process, just checking point of view

Sometimes companies do have a direction in which they look for CPM software. They do not really want advice, but just want to have their point of view confirmed by an expert. Often their scope is too narrow, as just a handful of suppliers are contacted. And the main departments involved do not look any further than their own perspective: what do we want and what could be beneficial for our department? This makes the risk of missing out on the optimal solution very high. To avoid this pitfall, more relevant stakeholders will have to be involved to see what is important for them.

#5 Relevant stakeholders not involved from the start

All too often, a new system is implemented without consulting the people who are to use it. The new tool is introduced, but background information on the why and how are missing. Moreover, as the relevant stakeholders were not involved in the definition of requirements, the new CPM software might not meet their needs. Instead of a solution, it may become a burden causing a lot of extra work. Clear communication and involvement of all stakeholders from the start are key for any project. Not only to create sense of urgency and support for the decision, but also to make sure it facilitates a positive change for everybody.

#6 Too much focus on current way of working and current system

When drafting the requirements for the new CPM software, often the current system and the current way of working are taken as a point of reference. This seems logical and safe. However, as your company grows, your workflows and processes may have become inefficient or outdated. Selecting a new system is the perfect moment for realigning your workflows and processes with your business goals and future plans. And defining a new way of working which enables you to look further ahead and make optimal use of technological developments.

#7 Fall for ‘an offer you can’t refuse’

Sales-driven organisations like software suppliers often work with quarterly targets. When the end of a quarter is near, they tend to go an extra mile to make their offer more attractive. For example, by adding more functionality or additional modules. This might look like an offer you can’t refuse, but usually these extras do not add much value to their proposal. Moreover, you might end up with a CPM software solution that is just too big and expensive for your company. Don’t let anybody rush you into signing too quickly. Take all the time you need to compare proposals of various suppliers. Make sure they really meet your requirements and expectations.

Talk to the CPM Advisory expert

Cpmview offers unique CPM solutions for financial planning, financial consolidation, reporting, and analysis tailored to the specific needs of fast-growing or mid-market organizations. Our CPM experts have a lot of experience in helping companies define detailed requirements and select the best matching CPM solution. A solution that provides you with simplicity, insights, and control.