Due to growing demand for enriched data to support business decisions, PE firms are continuously investing money in new technology to support their back, middle and front office processes.
Unfortunately, there is somewhat of a misconception that these solutions can be maintained with minimal effort from members of the team. One of the primary reasons for the failed management of a system, as well as its symptoms, is the lack of engagement and buy-in from key stakeholders, which results in firms missing out on potential efficiency gains from their technology investments.
To help your firm avoid this, our private capital systems experts at Holland Mountain summarized 10 best practices to increase system adoption.
1. Adapt requirements to evolving needs
Frequent challenges
At the system selection phase of the project, change teams may not have full visibility of the requirements of the business leading to gaps once the software is implemented in their technology stack. This results in increased costs as further resources need to be allocated towards modifying, enhancing or a complete redesign of the system to meet the new requirements. In the worst-case scenario, the newly implemented software may not be equipped to meet the new business requirements.
Best practices
It is important to conduct a full review of the updated requirements from each user group and stakeholders.
This task involves gathering feedback through surveys and interviews, analyzing the changes proposed and prioritizing the actioning of them based on feasibility of implementation and the size of their impact.
2. Empower system champions and strengthen senior management support
Frequent challenges
System champions serve as a point of contact for users seeking guidance when using the new system. Without these champions, users can become frustrated and eventually become reluctant to utilize the system. Additionally, through periodic tracking of key performance indicators during a given period such as login frequency and quantity of data uploaded will help them identify and spotlight best practices, provide targeted training sessions and build incentivization plans based on user interaction with internal systems.
Best practices
System champions play a crucial role in advocating the benefits of using a implemented system and also monitoring the usage of the system throughout its lifecycle.
The first step is to identify these key individuals who are enthusiastic about the newly implemented solution. It is important to empower these individuals to lead by example, providing resources to support any request that comes their way, whether it’s through training materials or by providing champions with feedback channels to communicate constructive criticisms to the implementation team for rectification.
3. Effectively communicate system benefits
Frequent challenges
A lack of communication of the system benefits will always lead to poor user adoption.
Without the knowledge of how the implementation of the new system will benefit their day-to-day work, users will be reluctant to invest time and effort in adopting the system. Without adequate communication and training, users will overlook valuable features and key functionality of the solution as they are unaware of how it affects their BAU activities.
Best practices
To address this issue, it is important to create a clear communication plan dictating how the implementation team will disseminate information regarding the benefits of the new system to both stakeholders and the day-to-day users of the system. After communicating the benefits, it is important to introduce various channels where users can ask questions to improve their understanding of the system. This will help build users trust in the system and help them leverage the system’s full potential. Systems are also always rolling out new enhancements, there needs to be a defined process for communicating these to various users.
4. Teach the art-of-the-possible
Frequent challenges
When adequate training is not provided to the end users post-implementation, it is likely that they will use the platform inefficiently.
Most software contains tools which are designed to make the end users experience effortless.
These tools are continuously rolled out by vendors, however, due to a lack of communication users will likely not know of their existence.
Best practices
Hold recurring workshops and drop-in sessions with the end users to bring attention to new releases and product developments. Additionally, sending internal updates via your internal communications platform to ensure that information is adequately disseminated. Build a strong relationship with the vendor to receive relevant demos of the new features available.
5. Regularly update and improve system features
Frequent challenges
A solution becomes outdated when vendors are not dedicating the time and effort required to meet users evolving requirements.
As such, users will begin moving away from using it as they feel they’re not getting value from their investment leading to change management teams seeking out new solutions which cater better to their evolving needs.
Best practices
To ensure your firm remains competitive, and utilizes the latest available software, it is important to regularly visit the market and identify alternative solutions better suited to sustainably support your business’ requirements now, and in the future.
Achieve higher returns on technology investments
Our private capital system experts can help you optimize your systems to enhance your operations. We pinpoint the exact changes needed to maximize your systems’ value cost-effectively.
6. Strengthen data quality through incentives
Frequent challenges
A key attribute of user adoption is buy-in.
If internal stakeholders are not personally incentivized, there is no governance to ensure the quality of data entering the system. Eventually, a lack of quality data will result in a lack of confidence in a system, and eventually users will find alternative means to conduct their work instead of using the solution.
Best practices
Introduce an incentive scheme where internal stakeholders act as data stewards. By remunerating these individuals on a Monthly/Quarterly basis depending on the quality of the data within that period, there is a greater likelihood that these stewards will ensure that business users keep inputting high quality data. In turn this will generate confidence in the solution and subsequently improve user adoption.
7. Streamline processes to prevent duplication of efforts
Frequent challenges
When new solutions have been implemented, but not integrated fully into the business’ technology stack, users may have to double key information across both new and legacy systems. This additional effort results in a lack of adoption due to the additional effort required.
Best practices
In order to improve user adoption of internal systems, it is important to ensure that the technology stack complements existing activities instead of increasing the businesses workload due to duplication of efforts. It is important to identify where users are having to input the same information across multiple systems, or file locations and target these areas for improvement. Establish communication channels through meetings or workshops to provide a medium for the business users to share any areas of potential overlap and once identified, look for opportunities to consolidate overlapping activities.
8. Implement clear processes and strong governance
Frequent challenges
Many firms adopt new software hoping it will enhance their processes, however, without the proper governance in place, users will either continue using historical processes they understand rather than using a new system with no governance structure or clearly defined outputs.
Best practices
It is important to document each of the processes and tasks the business will be conducting on a new platform.
Additionally, introduce data stewards and system champions to ensure the quality of data recorded is of a high quality, and that the business has the internal support they require to submit high quality data.
9. Maintain thorough documentation of decisions
Frequent challenges
A problem we consistently see across many clients is that post-implementation, the Change Management team has not adequately documented the key decisions made in a project along with the reasons why a decision was made. This results in duplicated efforts being made in the future to identify these reasons. Additionally, if a historical decision is reverted without understanding the reason it was initially implemented, it could break a business process, which would weaken business users’ confidence in using the system.
Best practices
Ensure to formalize the use of a decision log highlighting each decision and the key driver behind it.
When conducting maintenance on the system, ensure to review the decision log prior to making any updates.
10. Ensure smooth transition of system ownership
Frequent challenges
When key members of the implementation team leave the business, they fail to document important information about the setup of internal systems and processes.
This becomes an issue when the business looks to upgrade these systems.
In our experience, we have seen clients spend countless hours attempting to understand the back end of their own internal processes used for years in preparation for a replacement.
Best practices
Formalize the process of creating Handover Documents documenting key pieces of information and decisions made during the project to upskill future system owners. Within this handover document, ensure to highlight key contacts from the vendor to ensure system owners can easily reach out for further support where required.
Bonus: Seek Private Markets system expertise
Frequent challenges
Private capital firms’ requirements are specific, and too many times we have seen systems implemented in a generic way, without addressing their private capital operational needs. This usually results in much friction for employees while using the system, and therefore low adoption.
Best practices
Listing and communicating your requirements with vendors are key to understanding if the solution can meet them, and if the vendors can support in the implementation. If not, surrounding yourself with private capital technology experts will help you maximize the return on your investment.
It’s not only tech, but also the people.
As we’ve just seen, system adoption has a greater focus on culture, people and user experience compared to technology and data.
Often overlooked, this is a missed opportunity for firms because their costly systems are not used to their full potential in order to support the business’s growth objectives.
Holland Mountain has supported hundreds of GPs in maximizing their system across the front, middle and back office. From incentivization strategies to transformation planning, we will help you achieve higher returns on technology investments.
If you wish to maximize your digital spending, contact our system experts for an initial discussion.
