How do I prepare for a costing framework implementation? The short and easy answer is “it depends” but here is a quick dive into the 3 most important parts of an implementation effort for cost framework and strategy.
Any time users migrate data, maintaining cleanliness and integrity are key. Each business system owner should be in charge of cleansing and maintaining their data. In addition, each system owner needs to update their system’s records and identify the business category that the system would map to. Management teams are responsible for ensuring that only valid business systems are active in the financial management system. This is the first step in consolidation, as it allows management teams to remove unnecessary or redundant systems.
The next design element would be architecting the data and information that needs to be captured for each business system. This would include selecting and standardizing the use of cost objects and cost object attributes to track each business system within the larger financial management system. A combination of attributes can create multi-dimensional views (analytics) of the cost for each system. For each business system, cost object attributes support the need to track the flow of capital through an organization.
Transitioning your workforce to new techniques and jobs requires a comprehensive training and communications strategy to ensure stakeholders will adopt and take ownership of the new cost information framework. The greatest successes are found in strategies that focus on task-based implementation and training. This training typically includes live, instructor-led training, video training, templates, and more.
Over time and as emergent solutions come to light the new knowledge capital must be centrally stored, creating a leverageable, sustainable center of excellence for managing the business systems.
Cost frameworks are not easy nor are they quick. As you can see in the graphic below, they require a serious deep dive, creation of new processes and training and adherence to the new standards. The payoffs, however, can be tremendous.
Our case study on a cost framework implementation for a Federal organization shows how Alta Via helped a large federal organization, prepare, plan, and execute a truly massive undertaking in their financial space.