How to Organize to Select New Technology

June 4, 2021

In a previous article, “Four Essentials for Successful New Systems,” I discussed critical elements for new business system success.  One of them was focused on the Technology Selection.  Evaluating and selecting the technology or new business system must be comprehensive and objective.  In this first article of a multi-part series, I would like to explore Technology Selection in further detail.

You will likely meet with various vendors and participate in some vendor demonstrations but only use this information to decide which vendor solutions will be included in your evaluation.  Refrain from making any decisions about vendor solutions based solely on discussions and demonstrations.  It is imperative that you do the detailed work and due diligence to validate which solution will best meet your needs.

Let us start with who should be involved in selecting new business systems:

• Should the business users independently select their new system?
• Who should do the necessary detailed work and due diligence required?
• What is IT’s role in the process?
• How will executives have confidence that the right decisions are made?

Often overlooked, thinking through everyone who should be involved is critical to ensuring proper engagement, support, and buy-in in the long-term.  It also leads to more informed decision making and helps set up the initiative for success from the get-go.

Most would agree that the decisions and process should be shared between the business and IT. Everyone learning together will lead to stronger support and buy-in, will avoid re-work later, and the diversity of different perspectives consistently leads to better performance and decision making.  The Hackett Group’s recent article by Rick Pastore, “Improving Finance-Technology Partnering,” cites that lack of IT involvement often leads to project failure and long-term sub-optimal results and that benchmarking data supports superior performance when IT is a strategic partner.

The best way to ensure proper engagement and participation from all necessary parties is to clearly articulate the various roles and teams involved, their responsibilities, and agree on the specific members in each team. Your project will start off on the right foot if you organize the project team around the following:

Business and IT Champions

These are the executives or senior leaders that set business/IT direction, make decisions, and communicates organization/technical strategy as it relates to the project. These two roles act as a point of escalation when required. They bring business/IT leadership subject expertise to the initiative and provide oversight to the entire program to ensure it stays on course and delivers expected benefits and returns.  Fundamentally, this is a shared leadership relationship.

 Project Manager

The project manager is a single point of contact who shares accountability and leadership with the Business/IT Champions for the success of the project or program. He/she manages project communications, issues, risks, and ensures everyone is held accountable to their commitments.

 Core Team

The core team should be a cross-functional team of the business users and IT associates impacted by the new system.  They are accountable for executing all project activities.  They recommend scope, direction, options, and resolve issues.  They follow all processes for completion of the initiative and communication of status. They design the decision scorecard and socialize it with the Evaluation team for their input and gather key decision criteria from the Steering Team.

Steering Team

The steering team provides guidance to the core team. It is an advisory committee of executives and/or senior leaders (including the project champions) who govern over the initiative and approve direction of decisions.  They decide on recommendations from the core team including the final decision on vendor selection. They approve significant changes in scope, timing, and cost.

Evaluation Team

The Evaluation Team includes the Core Team plus additional key leaders and associates from the impacted business areas and IT.  They participate in workshops, respond to vendor questions, complete a scorecard assessment, and provide the recommendation of vendor down-selection to the Steering Team.

Negotiation Team

Typically composed of the Core Team, IT Champion, representatives from Legal and Supply Chain/Purchasing.  They participate in discussions and decisions during negotiations.  They provide the final recommendation on vendor selection to the Steering Team.

Extended Team

In many cases, additional business associates may need to engage to provide input and subject expertise during important points in the process.  They may assist in responding to vendor questions but typically their involvement is significantly less frequent and requires less time than other team members.

In closing, be specific about who is assigned to each team and how much of their time will be required.  Of course, low impact or small projects may have the same people in each team and not require so many different participants/sub-teams but thinking through the responsibilities and roles will help determine what is truly needed and allow for proactive engagement to ensure all responsibilities are fulfilled and all appropriate people across the organization are engaged.

Future articles will discuss additional tips and the overall process for evaluating and selecting the new technology or business system. In the meantime, if your Technology Selection needs help, let us talk about how ITechrity Exec Consulting can support your process.