Appoint a team to design new processes. It would be unusual for existing practices to migrate unchanged from one system to another. Indeed, process change is a main drive for a software change.
All departmental managers and team leaders should be involved in the design. Not only does this ensure that their requirements are met, it also gives them an early opportunity to see the new software first hand, and then be well placed to train their own staff.
On a busy schedule, it is not uncommon for department heads to let the staff get on with it. A direct consequence is that department heads do not know the new system as well as they knew the old, placing them at a disadvantage with staff, but also they will miss opportunities during the design phase.
Take each process in turn, and work your way through it, taking time at key points to check the software functionality. For example, the goods inward process needs to update stock, create accruals for payment (supplier, haulage, duty), update cost price records. Is there a requirement to create warehouse documentation and records? Is the audit trail in tact?
Process inevitably attracts staff reaction, positive and negative. Change is frequently accompanied by negative attitudes which can bring down the entire process. Inclusion from the outset can keep people positively involved in the process.
Do not discount listening to people. It is remarkable the key pieces of the process jigsaw which some people carry. Also, do not over-listen, mountains are made of molehills.
Identify staff who are regularly creative in ideas and suggestions. Allow some freedom for some frank exchanges. Mistakes and blind alleys are a feature of the creative process, so let it happen so that the good ideas emerge.
Ensure that the IT infrastructure is capable of handling the new system.
Numbering Conventions, Lists and Data Capture
All records are lists: eg. customers, suppliers, assets, expense accounts, products, product groups.
These should be designed with reporting and screen appearance in mind.
Remember that when lists appear on screen or reports, the default sequence is alphabetic / numeric. So in what order do want your lists to appear?
The better you design your data capture, the easier it will be to design and read reports.
You will need to decide if you will keep your old numbers. Bear in mind that the new system may not let you. For example, your old system may have your customer numbers as alphanumeric, eg. S0023, but the new system may not allow letters. You will have to decide to change or consider this a showstopper. Was this listed in the system requirements? Things like this can easily be missed.
Chart of Accounts
In the company’s general ledger, the ‘accounts’ are collection points for transactions of the same type. The Chart of Accounts design is critical to all financial reporting. This has to be right for the business. If a company is changing from an old system, the old Chart of Accounts is likely to be warn out, with accounting records kept out of any logical sequence. Key finance personnel should be allowed time to review and redesign this carefully.
