The keys to a successful budgeting software implementation – Part two: customizations and change management

Implementing even the most complicated budgeting system can be simplified with proper planning and understanding of several key factors. Addressing each key factor will facilitate an implementation without surprises, and provide a healthy foundation on which to build your organization’s long-term strategic budget goals.


In part one of this article we discussed the importance of establishing clear objectives, setting a realistic timeline and ensuring the availability of resources for your budgeting software implementation. Here we’ll cover the challenges and opportunities related to customizations, change management and feedback.




Most system applications are theoretically developed based on industry best practices and are intended to be deployed “as is”. Vendors often offer configuration options that allow organizations to incorporate their own business rules but functionality gaps sometimes remain after the configuration is complete.


Customers can use technical and non-technical solutions to reconcile functionality gaps by weighing the pros and cons of each. Technical solutions include rewriting part of the delivered functionality or development of new or additional functionality. These options may require varying degrees of system customization which may be invasive and/or costly to maintain.


Non-technical options may include changing business practices and/or organizational policies to better match the delivered functionality.


It is important to understand the difference between system configuration and customization. Budgeting software almost always should be configured before use. This may include items such as setting up the organizational structure, costing centers, general ledger accounts, configurable screens, etc. Most software is designed to handle various configurations and behaves predictably in any allowed configuration.


Customization is always an option. However, it behaves less predictably, increases testing requirements by both the vendor and customer and may not survive upgrades to new software versions. While customizations may improve user acceptance, it does increase the time and resources required to both implement and maintain them. As a result, both your project timeline and budget may be impacted.


When deciding what to customize, there are several considerations.

  • Is the functionality a “need” or is it a “want”. If you can live without it, perhaps it should be put aside until the secondary phase.
  • “That is how we have always done it” is not a reason to customize. Examine the process and look at best practices. Perhaps this is an opportunity to improve or re-engineer the process. Consider whether the customizations can be done within the implementation timeframe.
  • Make sure all the stakeholders are involved in the process. Specifications need to be clearly documented and understood by both your team and the development team.


Many users are not able to easily express their requirements since quite often they simply don’t fully understand what they want. In addition, end-users generally don’t have the technical knowledge to understand the implications of what they are demanding. This can not only lead to increased costs, but also be detrimental to the success of the project if the expected outcome is not achieved.


For the project to be successful, you need to strike the right balance. So make sure you have a mechanism in place to keep a tight control over end user requirements and to assess the resources (time, money and manpower) that each modification will require.


Change management


Change management is a structured approach that uses tools and techniques to manage the people side of system or process change. The goal of change management is to transition people (individuals, teams or organizations) from an existing state to a desired future state. This is done by helping them accept and embrace change by reducing and managing resistance to process, technological or organizational changes. A solid change management plan is one of the major keys to a successful system implementation, and should contain three phases:


Phase one: preparing for change

  • Readiness: Assess the organization’s readiness to change and the scope of the change. Is it a big, radical, or gradual change? How many people are affected? What type of resistance can be expected?
  • Communication: Prepare a communication plan that starts by building awareness of the need for change, creates the desire for change and communicates the risks of not changing. Consider your audience, and their differing needs depending on their role in the change. Timing is everything, so be sure to communicate the right messages at the right time.
  • Sponsorship/Buy-In: Sponsorship and buy-in are critical success factors. Sponsorship requires active and visible participation by the senior business leaders such as the CFO, Director of Finance, City Manager, School District Superintendent, Dean, Associate Deans, Executive Director, etc., throughout the project.  As they have the most direct influence over the employees affected by the change, getting their sponsorship is key to achieving overall buy-in.


Phase two: managing change

  • Resistance: Although resistance from employees and managers is normal, persistent resistance can threaten the success of a project. Identify and understand the source of resistance and create a plan to manage it. Avoid the loss of valued employees by asking for their input and incorporating their ideas where possible.
  • Involvement: Managing change is not a one-way process, and employee involvement is a necessary and integral part of the process. Analysis and corrective action based on their feedback provides a robust cycle for implementing change.


Phase three: reinforcing change

  • Celebrate: Recognize and celebrate successes, big or small. Individual and group recognition is also a necessary component of change management to cement and reinforce the change in the organization.
  • Review: The last step in the change management process is to review the project, evaluate successes and failures, and identify process changes for the next project. This is part of the ongoing, continuous improvement of change management for your organization and ultimately leads to change competency.


Checks and balances


We’ve talked about establishing clear objectives and realistic timelines and these are very important elements of a successful implementation. However, in every successful project feedback dominates; so, let it.


A successful project is not a project that delivers all of the initial tasks on time and within budget. Rather, it is a project that meets its business objectives at the time of delivery. These, like everything in life can change, so make sure that your project plan can accommodate changes.


Try to avoid preparing a project plan just to meet an administrative requirement that “a Microsoft Project template must be completed.” This invariably leads to the invention of tasks long before anyone has any real understanding of the environment, the requirements, or the capabilities of the technology to be used. It may seem odd, but as a software vendor we see this all the time.


Beware of the propensity for groups of human beings to agree to concepts that make absolutely no sense. A fitting example of this is when purchasing departments insist that vendors supply a project plan as part of the RFP process.


Finally, don’t wait until the end before checking that your system is delivering accurate results. Make data reconciliation an ongoing process.


When these key points are taken into consideration along with the suggestions made in part one, you’ll be on your way to completing a software implement that works not only for your organization but for all your stakeholders.


Read part one : The keys to a successful software implementation – objectives, timelines and resources


Find out how Questica Budget Suite can help your organization achieve better and faster budgeting by requesting a demo or signing up for one of our free monthly webinars.