Why Aren't You Using My Software?

The picture on the screen was your average warehouse, but it wasn't your typical Microsoft corporate shot, i.e. it wasn't a perfect company with gleaming boxes on pristine shelves, where you'd swear you could eat off the floor. This one looked real. It was even a little -- dare I say it? -- messy. The Navision (Microsoft Dynamics NAV) developer from Copenhagen explained that this was a company they had used for research. The company had about $10 million dollars worth of inventory and already used Navision, but they weren't using the inventory features. That was why the developers were there. They wanted to see for themselves. They wanted to talk to real people in a real company and find out how they could make the software easier to use.

Sometimes it isn't enough to ask people what they want. They can tell you what they don't like, but they often have trouble telling you how to fix it. Then you have to be sure that the fix for one person doesn't cause problems for someone else. In this case, the reason the company wasn't using Inventory was that they found it too complicated and cumbersome. There were too many features they would never use. Theirs was just a simple business.

That's how the role tailored client was born in NAV2009. Every person has their own role to play. Each person needs access to different features. Jumping around between menus just wastes time and makes the system look complicated. The lay out of the options should tell their order. People should be able to tell at a glance how many transactions they have waiting for them so they can decide what to do next. If something isn't being used, it should be taken off the window. Even if you are filling in for someone else, it should be clear what needs to be done.

Sometimes important steps are taken without any technological wizardry. Sometimes all it takes is a watchful eye and a curious mind.

What Would You Do?

Here's the situation: you're a large software company and you own several competing software packages. You want to keep your customers. In fact you want to build a relationship with them so they keep updating their software instead of holding on to one version until it's obsolete and then going with the newest product from a competitor.

Here are some of the problems.

1. The products have been built on different platforms. None of them uses your latest technology.
2. Accounting systems are incredibly complex, responding as they do to different business practices and regulatory environments. (To understand the complexity, just imagine building a system that handles both US sales tax and Canadian goods and services tax.)
3. Your first thought was to merge the packages, but your developers told you to forget it. It would take centuries of programming to capture all of the features of the packages.
4. Oh, by the way, each package has a loyal customer base that would view being forced to "upgrade" to a different package with deep suspicion.

What would you do?

Me, I would look for any common weaknesses in the packages. For example, if my customers were routinely turning to third party software, such as Crystal Reports, I would look to see what that problem was. Maybe I could replace the reporting in all of the packages with something new, e.g. SQL Reporting Services and save a lot of resources.

If I had a proven user interface that my customers were used to, such as Outlook, then I would move all of the packages to that same look and feel. This would start the process of bringing the different user groups together.

Without having any inside knowledge, this is what I think Microsoft is doing. I was just treated to a demonstration of Dynamics NAV 2009 (formerly Navision). Speaking as a jaded, skeptical accounting system user, I am happy with the directions I see. As outlined above, I like the overall approach. As is typical with Microsoft, there are teasers in the software, e.g. role based security that attempts to simplify setup by grouping tasks that are typically found in the same job description. I see the beginnings of a workflow system here. (Workflow means that the system passes transactions between users as each finishes their task, for example, when you complete a journal entry, it is automatically passed to your supervisor for approval and posting.)

I like the way that Microsoft is working with user displayable fields. The reality is that fields that are critical to my business may be unimportant to you. The best way to deal with this is to make all of the fields available, and allow the users to decide which ones they want to see. This has always been a strength of Navision. I like how the new version enhances the presentation by allowing the user to pick a few key fields that are shown in what used to be the tab. For example, you no longer have to go to the Foreign tab to see the currency field if that's the only one you need. The best part of this approach, for me, is that it makes maximum use of the screen. It will be easier to make the data entry windows work with older monitors.

Have you see NAV2009? What did you think?

Less Numbers, More Story

Harry is one of our unit managers. His normally calm, diplomatic voice takes on a sudden energy as he leans across the table and says, "People seem to think that any mission will do. That's just not true."

Harry has a point. Missions have to resonate with the team or they will not motivate them. I have worked for a passionate leader and I really felt the difference. When he announced his vision for the company, he made sure we all knew where we could make a difference. We worked together and supported each other. There was a well defined goal that was just beyond our reach.

Those are all good things, but, as I look back on that experience now, I see it differently. It was not the goal that motivated us, but the story of The Little Company That Could. We saw ourselves as a small Canadian company competing for recognition with our much larger colleagues south of the border. It was the classic David and Goliath story, and we were determined to create a happy ending.

My current company's story is very much in my mind as I put together the book that will become the blueprint for our company's 2009 year. People don't traditionally look to budgets for inspiration, but I am out to change all that. Here's what I'm planning:

• Less Numbers, More Story - The budget will now include a narrative telling the reader what we are aiming to achieve. The detailed tables broken down by Cost Centre, Account and month that I need to import the budget into the accounting system will be sent to the Appendix. People don't read them anyway.
  
• Align with the Organization's Priorities - The accounting system breaks the organization down into units, but the Board sees the operations in terms of their priorities. The budget book will take all of the individual managers' goals and show how they fit into the Board's priorities.
• Support the Priorities with Graphics - I will use my Microsoft reporting tools to present the plans graphically, just like I promised. The reader will see that we are putting our money where our mouth is.
• Get More People Involved - Some people view budgeting as a black box: a mysterious process with results that are beyond their control. The budget book will have a section describing the process and talking about how budget adjustments were made. We will ask for more input from the people most affected by the budget and actively seek their buy-in.
  
• Use the Technology - Use the Financial Reporting Software rather than Excel for the Budget reports so that changes to the Budget ripple through all the reports, instead of relying on more fragile spreadsheet links. Use Navision (Microsoft Dynamics NAV) to track the original budget separately from subsequent transfers and updates, so that I can show both on financial reports.

There was an excellent demonstration of the power of a story in Drew McLellan's Marketing Minute today. It certainly inspired me.

The public may not be on the edge of their seats when this book is released, but I'm hoping that Harry will be.

We're All In This Together

The first accounting system I had to supervise was an IBM product called MAPICS. I was an inexperienced newbie and knew nothing, so I joined a user group. Every couple of months we would meet at someone's office and someone would bring donuts. We would talk about our experiences with the product and try to answer people's questions. I got some excellent advice about how to handle program patches from IBM as well as where to go for programming assistance. Joining the user group was the best $25 I ever spent.

If there is one piece of advice that I can offer to everyone, regardless of the size of your company, your industry or the type of software you use, it's to join a user group. There is no better source of unbiased, practical information than other users of the same software. If there is a feature you would like to see added, getting a group of users together to request the change is the best way to get a developer's attention. If you are looking for trained staff, another user may be able to point you in the right direction. If you want to change your consultant, what better way than to ask for references from other users?

Many user groups are organized by software implementation consulting firms. I have heard these groups dismissed as being no more than upselling by the consultant. Of course consulting firms are interested in selling more software and services, but the ones I know go to great lengths to put useful content into the sessions. They know that providing practical, useful information is the only way they will get users to come back the next time.

Traditionally, however, user groups are started, organized and run by users. Vendors are often invited to make presentations, but user meetings are not about sales. When my Microsoft rep suggested I start a Dynamics NAV (Navision) user group in my area, my first thought was about all the administration of running the group. Then he told me about Dynamic Communities. They take all of the work out of running a user group, so you can concentrate on the meeting content.

All Dynamic Communities does is manage user groups, whether for Dynamics AX (Axapta), GP (Great Plains), NAV (Navision) or CRM. They just need one local person to lead and they will set up a local chapter. They will even give you a list of their members in your area. If you work through your local Microsoft rep, you can get help finding other users. Microsoft will also provide speakers if you give them enough notice. There is a sliding membership fee depending on the size of your business.

The typical local chapter has 10 - 15 members at any given meeting, with larger chapters averaging 30 - 35 members. The typical meeting goes from 10:00 am to 2:00 pm, with a networking lunch. The morning session is usually a formal presentation, with break out sessions after lunch. I asked about the split between technical and accounting members and Bonnie, the Member Services Manager, noted that chapters started by IT Managers tended to have more technical members, where chapters started by accountants had more user members. You need both.

One of the problems with user groups is their small size. A huge advantage of a centralized organization is that it's possible to put on a conference. Dynamics Communities is hosting a 2 day conference (The link is to the NAV conference. The others have similar pages.) in Las Vegas for $499 per person, with optional additional training either before or after the main conference. When you add that to the user forums available at mibuso and Dynamics' webinars, we've come a long way from a box of donuts after work!

The Most Advanced Accounting Software on the Planet

"Tally 9.0 has been dubbed the most advanced accounting software on the planet." That claim is obviously more marketing spin than carefully researched fact, but it points to a trap that we so frequently fall into: comparing accounting software as though there were some perfect system against which all others must be measured.

Anyone who knows me will tell you that I'm a Microsoft fan. In my quarter century of accounting, I have spent a decade implementing Dynamics GP (Great Plains) and Dynamics NAV (Navision). But I still wouldn't claim that it's the most advanced accounting software on the planet. The issue is not how advanced it is, but how well it fits the client's needs and budget.

"Unlike other accounting software, Tally accounting software makes sure all data is protected and backed up automatically" (further on in the same article). If someone starts comparing two accounting packages, stop them right there. There is no standardized language in accounting software upon which to base a fair comparison. Two packages may claim to have advanced inventory features, multi-currency, role based security etc. etc., but when you investigate, you find that they have addressed these features in very different ways. Furthermore, there are hidden assumptions included in the words. I would challenge anyone who claimed that their system automatically backs up data. How can their system ensure that backup media are being properly rotated and taken off site? These are both critical aspects to the back up process. The word "automatic" sends up red flags for me, as do the words "easy", "user friendly" and "at the click of a button".

Frankly, we accounting software implementers have done ourselves a lot of harm by raising people's expectations to unrealistic levels about how easy it is to change accounting systems. Yes, the software installs quickly. Yes, everything is menu driven. Yes, the manuals are online and there's an extensive help system. All of those features do not change the fact that accounting is done very differently in different companies, even those in the same industry. The bulk of the time spent in an accounting implementation is in marrying the new system to the company's procedures and requirements, as well as migrating the historical data to the new system, not installing the software. One thing I admire about Microsoft is the way they insist that all customers work with a local firm ("Partner"), so that there is someone familiar with the customer's business environment on the ground to deal with specific issues.

Microsoft actually goes one step further. They design their systems in layers, the top layer being the changes needed to make the software fit the individual client. They don't claim to be the most advanced software on the planet. They claim to provide a set of flexible tools so that you and your Partner can make the system fit your needs.

Specialized vs. Multipurpose Software

"Overseeing and managing costs on the construction of a new facility with eight buildings is much too complex for traditional accounting software," said Jerry Fye, deputy director of finance for the Austin Children's Shelter, in a release.

Foundation Software, a developer of customized software for construction contractors, donated software, training and support to allow the Shelter to manage its construction project.

This raises the question of when to go with "traditional" or multipurpose software and when to go with a system designed for a specific purpose or industry.

If I were developing software for a specific industry and I wanted it to link into an accounting system, I would NOT try to reinvent the wheel. I would build the links to one or more packages that are popular with the companies in my target market. Rather than build yet another general ledger for medium sized businesses for example, I would bridge to Great Plains or Navision (Microsoft Dynamics GP or NAV). That way I get to stick with what I know (e.g. construction projects) and take advantage of someone else's success.

This goes for custom development as well. One of my clients was in the entertainment industry and wanted to sell tickets to customers online. Part of the project design was to integrate tightly to the accounting system so they would not have to re-key the transactions. They also decided that they did not want to have to do the programming to calculate all the taxes when the accounting system (Great Plains) already did such a good job of it. So they had their web site pass the information to the accounting system once the customer had placed the order. The accounting system then calculated taxes and shipping charges and passed the information back to the web site so the customer could enter the payment information. The result: a system where every piece does what it's good at and the headache of updating the tax tables is left to the experts: the accountants!

Competitive Edge: Your Accounting System

The Toronto Globe and Mail ran a story about Analytics, saying that a company's statistics can be a powerful tool in the right hands. Harvey Schachter, the Globe's "Monday Manager" quoted from Competing On Analytics, a Harvard Business School book by Davenport and Harris, which highlights the need to have the right data and the right management support in order to reap the rewards of good analysis.

How well I know that story. Every time I implement Microsoft Dynamics (Great Plains or Navision), I offer the client the ability to integrate operational data in the accounting system, but I am rarely taken up on the offer. One glowing exception was a felt manufacturer where the President had a one page report of key performance indicators that he used to run his business. It was quite a challenge to make the new system fit the summary cash, balance sheet, income statement and statistics (with a separate column for each subsidiary) onto one page, but it was worth it!

Try this: picture your company as a sports franchise competing in the major leagues. What statistics would help you manage the team? Think in terms of:

• Output: How much do you really earn per unit, after all discounts?
  
• Input: How much waste is there, and at what stage does it occur?
  
• Human Resources: How many hours go into your product or service? How high or low is your utilization?
• Equipment: How long do your machines sit idle?

Often managers feel they know the answers to this type of question already. As the Production Manager of a tool and die shop said to me, "You're not going to replace me with a computer!" when I implemented a job tracking program for the General Manager. But that same manager was really surprised at how busy his plant turned out to be. He had been considering whether to replace his older drill presses with computer aided equipment, but he ended up keeping both the old and the new equipment when he saw the report of his order backlog.

Even if you have an older accounting system, you would be amazed at the quality of report that can be obtained from standard microcomputer software such as Crystal Reports or even Excel, when they have detailed financial and operational data to work with.

What Do You Use?

Remember the old saying that the shoemaker's kids go barefoot? I was reminded of that recently when reviewing my own accounting system. When I first selected it, in 1994, I narrowed the choice down to Quickbooks and Mind Your Own Business (MYOB). I chose MYOB because it had both a Mac and a PC version and I was a bit of a MacHead back in those days.

MYOB could continue to record my revenues and pay my bills, but I started thinking about hiring my son to do some of the mailings, particularly when I'm on the road. I'm currently looking at Net Suite because it is:

1. Accessible via the web,
2. Bundled with a web site interface and CRM, and
3. Aimed at small business and the mid market.

I can use it for myself and offer it as an alternative to Microsoft Dynamics GP and NAV (formerly Great Plains and Navision). I'll let you know what happens.