Iāve spent a lot of time deeply involved in the nitty-gritty of finance operations, and Iāve seen firsthand how the right tech stack can transform a teamās efficiency. But convincing the decision-makers to invest in new technology can be a challenge. Hereās my guide on how to build a compelling case for adopting the right tech stack for your finance team.
Identifying pain points and inefficiencies
Start with conversations
First things firstātalk to your team. Simple questions like, "How's your day?", "How do you find the systems you use?", and "What makes your job hard?" can reveal a lot. Listen carefully to what they say. You'll start to see patterns and recurring pain points.
Observe and experience
Next, donāt just take their word for it. Watch them work. See how they interact with the current systems. Better yet, try doing some of their tasks yourself. Thereās nothing like firsthand experience to truly understand the frustrations and inefficiencies.
Quantify the impact
Once youāve identified the pain points, figure out how widespread they are. How many people are affected? How often do these issues crop up? The more data you have, the stronger your case will be. For example, if a process is a headache for several team members every day, itās definitely worth addressing.
Demonstrating potential efficiency gains
Initial assessment
Before diving into detailed evaluations of new tech, do a quick usability test. Often, you can tell pretty quickly if something is off. If you find it clunky or inefficient within the first half hour, chances are your team will too.
Back-of-the-envelope calculations
When you find a better alternative, donāt overcomplicate things. Do some quick, back-of-the-envelope calculations on how long each task takes, how many times itās done per day, and by how many people to estimate potential time savings. Think big, relatable numbers. For example, āweād save 1000 hours per year in our sales teamā or āitād save 2 hours each in my finance team's day.ā This makes the benefits clear and compelling.
Communicating benefits to stakeholders
The Slack approach
Sometimes, the best way to introduce new tech is to do it quietly. Install it and let people discover it on their own, especially if itās low-cost and easy to implement. I call this the āSlack approachā and what I mean by that is to be like Slackāinstall it and wait for them to realise, especially if itās cheap, monthly, or no lock-in. Itās low-pressure and lets the benefits speak for themselves.
Targeted communication
Or simply advertiseāsend out a few mass emails, post on Teams, Slack, and internal pages. I prioritise adoption based on need and impact. I donāt rush others to use new tech until they experience the inefficiencies of the old way themselves, or until it directly affects our team.
Cost-benefit analyses and ROI calculations
Simple and clear metrics
Keep your metrics straightforward. Focus on time saved and risks reduced. Clear, understandable figures resonate more with decision-makers. Avoid getting bogged down in overly complex calculations.
Real-world examples
Let me share a real-world example to elaborate. We switched from on-premise email servers to cloud-based solutions back in 2015. The IT manager saved 30 minutes a day clearing email logs in the on-premise server. And by going to the cloud, one win was that I didnāt have to do it when he was on leave. Plus, the risk of system failures dropped significantly. Sure, there was a monthly subscription cost, but the reliability and security improvements made it a no-brainer.
Overcoming challenges
Managing decision-making
Involving too many people too early can complicate things. Trust your expertise and gut feelings. I once dealt with a situation where a CEO spent a year choosing a job costing system. After a month, I knew it was the wrong system. It was a hard chat when I had to tell him it was a mistake. To his credit, after showing him in detail how inefficient it was, it was an easy decision to move to a more user-friendly cloud-based system that connected to Xero.
Handling resistance
Resistance is normal. The key is clear communication. Demonstrate the inefficiencies of the current system and how the new tech can improve things. When you provide solid evidence, it becomes easier to bring people on board.
Tailoring the approach to your organisation
How to structure the sale
1. Scope
- Identify pain points: First off, pinpoint where the shoe pinches in your current processes. Talk to your team, dig into those daily frustrationsāthey're gold mines for finding areas that need fixing.
- Find potential solutions: Start looking for tech solutions that could solve these pain points.
2. Demo
- Demo the solutions: Get hands-on. Arrange demos or trials so you can see how these solutions work in real life.
- Price check: Figure out the costs. What's the upfront investment? What ongoing expenses are involved? You've got to know what you're dealing with pricing-wise.
- Pros and cons: Make a list. What are the perks of each option? What are the drawbacks? Lay it all out so it's clear.
- Rank your options: Once you've seen a few options in action, rank them. Which ones are most effective? Which fit your budget and team best?
3. Decide
- Plan the installation:
- Who's on deck: Decide who'll be involved in the rollout. It's a team effort. Make sure key players, the IT team and senior colleagues, are on standby to support the outcome if your CEO says yes.
- Timing is everything: Set a timeline that minimises disruption but gets the job done.
- Counting the costs: Nail down the budget. Know what you're spending on implementation.
- Counting the wins: Calculate the potential benefits. How much time could you save? Will it improve transparency or boost revenue?
- Sum it up: Write a quick summary. Keep it high-levelāshow the brass tacks of why this makes sense financially.
- Contract check: Review contracts with suppliersāmonthly fees, transaction costs, user licenses.
- Get buy-in: Spread the word. Talk to your CEO, second in command in finance, IT teamāanyone who needs to know and can back you up.
- Gather support: Get testimonials from others who've seen the benefits firsthand. It adds weight to your pitch.
- Sales pitch: Put together your sales docs for the CEO or Board, tailor your pitch to who's listening. Keep it sharpāa one-pager, a pros vs. cons list, visuals showing the before and after, pricing vs. benefits vs. risks vs. risks of no action, time to install and next steps.
- Haggle for deals: Negotiate with suppliers. See if you can sweeten the dealādiscounts always help. Aim to finalise near the end of a month or quarter.
- Seal the deal: Sell to the CEO or Board, a proper presentation with a closed-door meeting. Use your deck and offer any incentives for a quick decision.
4. Implement
- Sign and go: Once approved, lock it in. Sign the contracts and get cracking on implementation.
Building a compelling case for a new tech stack takes a strategic approach. Start by identifying and quantifying pain points, demonstrating potential efficiency gains, and communicating benefits clearly to stakeholders. Overcome challenges with persistence and clear evidence, and tailor your approach to your organisation's specific needs. By following these steps, you can drive significant improvements in your finance teamās efficiency and overall performance.
Efficiency is within reach. Take proactive steps today to assess your current tech stack and identify opportunities for improvement. Your finance team will thank you.
Thanks for reading, and good luck selling the stack!
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