Monday 13 February 2023

New System, New Problems

A client of mine recently commented on how a newly installed accounting system had resulted in them being unable to pay suppliers presenting legitimate invoices.

 

The problem was, apparently, that payee details were not transferred from the "old" system to the "new" system...  As a result, all that client’s suppliers were asked to complete new supplier registration forms (even though their information would not have changed).  Imagine the chaos this caused!  Not only that, but also the inconvenience and ill-will of having to fill in the same form again. One supplier had already completed their form and then seen their payment delayed even longer whilst their details were re-entered into the “new system".

 

Whatever happened, something went horribly wrong. Either comprehensive User Acceptance Tests (UATs) weren’t carried out, or somebody decided that transferring this data couldn’t be done for whatever reason.

 

The client has been able to pay one of its major suppliers, but this supplier has now stopped dealing with them. That supplier delivers an important service to my client, and through no fault of their own have fallen victim to circumstances.

 

When we introduce new systems, it’s generally out of a genuine desire to improve our service (or, at least, not to fall behind the competition).  However, before we “go live”, we need to remember that others will be affected.  These may be:

  • Our own staff
  • Customers
  • Suppliers
  • Regulators
  • Others we didn’t think of at the time

Before implementing any changes, we need to do our utmost to make sure it works – preferably the way it was intended to work - and that it improves the lives  of our customers.  We also need to ensure that ongoing support is there for when things “break down” or the “unexpected” occurs.  

At best, system “glitches” are a minor inconvenience and can be rectified quickly.  At worst, they result in unwelcome publicity, loss of business and even legal action or regulatory penalties.

 

Do you have a process to check whether a new system is “fit for purpose”?



I’ve spent more than half my life delivering change in different world markets from the most developed to “emerging” economies. With a wealth of international experience in international financial services around the world running different operations and lending businesses, I started my own Consultancy to provide solutions for improving performance, productivity and risk management.  I work with individuals, small businesses, charities, quoted companies and academic institutions across the world. An international speaker, trainer, author and fund-raiser, I can be contacted by email. My website provides a full picture of my portfolio of services.  For strategic questions that you should be asking yourself, follow me at @wkm610.



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