Case Study: Rebuilding foundations

Norwegian law firm Schjødt has radically modernised its entrenched business processes. Chief Knowledge Officer Knut-Magnar Aanestad reveals the challenges faced and lessons learnt from implementing a new ERP system.

Key Points

1) It will take a lot of resources so plan ahead.

2) Engage employees to understand what they want from the system.

3) Be thorough in your evaluation of the software vendors.

4) Test drive the new system with a single department first.

5) Don’t underestimate the need for support and ongoing training.

6) Monitor and assess functionality after full implementation.

As a knowledge-intensive firm, functional and stable supporting systems were previously our priority. But, as Schjødt evolved, our business processes required an enhanced level of support. Adopting an enterprise resource planning (ERP) system was a key part of our decision to modernise the way we run our business and enable knowledge-sharing across the firm.

Our move towards this dynamic business development strategy was based on the development of key criteria for the new system. We broke it down into four main areas: simple integration with our knowledge database for optimal knowledge sharing; an easy-to-use web interface for accurate time registration; electronic invoice handling to eliminate manual processes; and reporting and business intelligence capabilities to support better decision-making.

The system needed to be flexible enough to integrate with other systems; it also needed to be ‘future-proof’ to enable it to grow with the business. We also found that many of our internal processes were not optimal; in fact, they were hampering the functionality of our business. We therefore recognised that we had to optimise our processes and rationalise activities that were adding negligible value.

We then started to look at the different software options available on the market. We measured these different systems against the values we had generated during the initial stages of the selection process. After a thorough evaluation process, we decided that Maconomy represented the best system for the firm because it provided opportunities to customise and integrate it with other systems.

Maconomy is a role-based solution with web access for all users in the company. It incorporates task and resource management, financial control and automated role-based workflows with a fully integrated set of financial ledgers and job management functions, providing immediate access to essential budget and business information.

Getting started

It is important to view the implementation of an ERP system as an administrative project. It’s natural for projects like this to create ambitious goals. Therefore, as a business, you have to understand right from the start that it takes a lot of internal resources to make it successful.

The business processes we wanted to change had been cemented into our culture for many years. The whole firm had to understand that the goal was about modernising our processes and improving our business intelligence. If employees don’t understand why the systems are changing, then it can make implementation more challenging.

One thing we could have done differently was to have started the implementation of the business intelligence and reporting structures earlier. This would have allowed us to understand how people wanted to use it earlier and to adapt the system accordingly during the implementation, rather than at the end of the project.

Our managing director, Paul Bellamy, wanted the system to give leaders in our firm role-based reports at their fingertips, some of which are updated live from the system. We asked Maconomy to build a resource planning module into the system to give management a quick overview of the capacity of all the lawyers in the firm, so that they can plan ahead and understand where future work can be allocated.

Our business processes are supported in a role-based web interface which accommodates the individual employee’s needs for support and information. Our lawyers register their availability, giving us a complete overview of the resource situation in the different units. It is important that we can easily develop new reports at any time to give us the best possible basis for decision-making. And this is really the key behind an ERP system; it helps you make the important decisions by providing you with the best possible information available at the time.

The software has enabled us to distribute information across the business much more effectively. Rather than different departments using separate systems, as was the case previously, now anyone within the business can access vital financial and project data in real time. It was a significant undertaking, but the rewards are clear.

Rules of engagement

The management team really sets the tone and expectations for the rest of the firm. It’s therefore important to get them behind the project and driving it forward right from the start, enabling the whole business to understand the benefits of the new system, and how their current business processes will change for the better. Scheduling company or team meetings, regular email newsletters and bulletins are all ways of transferring this message.

Engaging employees early is therefore very important. Assessing the firm’s current processes is a good way of doing this; it also enables you to understand how the new business solution can be tailored to work within the business. Find out how people plan, what methods and programmes they use, and how they control costs and deadlines. These types of question give valuable insight into how the business currently works and gives people the opportunity to provide their input.

The next step is to understand how existing business processes can be improved. In order to ensure that a new system is utilised to its full potential it needs to be aligned to the goals of those using it.

Change management

Change management is possibly the most important factor in the implementation process. When you are adopting a new ERP or finance system, there are huge changes to the business’ usual processes, so there is an education process that needs to be done. Ideally, change management should be led by the systems consultant. It’s important that at the start of the implementation process, they are ready with a change management blueprint tailored for the firm.

Fundamental to the successful running of the blueprint is communication. Both consultant and law firm senior management need to clarify how they will communicate the changes to the staff – be it department-specific or company-wide meetings, intranet or newsletter releases, training days or WebEx. However you decide to do it, you have to focus on two factors: always reiterate the business benefits of the implementation, and don’t underestimate the support and ongoing training that your staff will require.

A very effective change management technique is to adopt a guinea pig department to pilot the new approach. Rather than a big-bang start, it is much more productive to start with one department to test drive the system. This allows the consultant and the client to monitor the system at work on a small scale and react to any resulting issues. This gradual progression also generates confidence and understanding.

This process of integration should be replicated with individuals as well. They should be encouraged to start slowly and build up their knowledge and confidence of the new system. Being thrown in at the deep end can be daunting so it’s important that everyone is comfortable – it may seem like handholding, and those looking for a quick implementation may see this as unnecessary, but it’s time well spent.

Use it successfully

Once the implementation process is completed, there needs to be a period of monitoring and assessing functionality: how is it working, who is using it well and who is experiencing teething problems? This needs to be done so that the investment is not wasted and the system becomes thoroughly effective.

Approaching implementation in this way is a very successful strategy. It’s about linking the soft skills like teamwork, communication and knowledge transfer with the logical and practical skills that are also required to make any implementation work. No implementation is worry-free, but with a good provider, a great consultant and this advice in mind, the process will be straightforward, predictable and manageable.

– knut-magnar.aanestad@schjodt.no