How to write a successful business case for the implementation of a global HRIT system
In today’s rapidly evolving business landscape organizations are increasingly recognizing the added value of a global Human Resources Information Technology (HRIT) system. In this blog, Abigail Fawcett, Human Resource Project Manager at SuccessDay, will discuss the essential steps to write a compelling business case for HRIT system implementation and explore why it is crucial for businesses to prioritize this endeavour.
Let’s say you are a CHRO or HR manager and you want to put together a business case to convince the rest of the organization that you need to implement a global HRIT system. According to Abigail Fawcett a robust business case is fundamental to project management methodology. “Successfully implementing an HRIT system requires careful planning and a well-crafted business case with clear objectives and stated benefits.” A business case gives a compelling reason why an organization should make a change, what it will involve and what the benefits will be.
Typically, a business case will go through multiple iterations. It starts at a very high level. You need a new HR system, but you’ve got very little information about it. You’ve got some idea of what the benefits might be, but not in detail. You don’t really know how long it’s going to take to put in and you don’t know how much it’s going to cost. “So, you will have to do quite a bit of homework. Gather all relevant information, talk to others inside and outside the organization to be well prepared. After all, you only get one chance to get it right.”
Step 1: Identify business needs
The first step of writing a successful business case is identifying business needs. Begin by conducting a thorough assessment of your organization’s objectives and how HR can support the business. Determine the pain points, inefficiencies, and challenges faced by your business and how HR can help. Consider the long-term goals of the company and how an HRIT system aligns with them. “It’s important to outline why an HRIT system will benefit your organization”, Abigail says. Document the current situation, use this to help the business case. For example, replacing multiple different HR systems globally with a single system gives the opportunity to standardize processes and enable accurate and timely HR reporting to support business decision making. Outline the time and effort of generating reporting today and the implications of having a time delay for business decision making.
Step 2: Identify the main benefits
A global HRIT system serves as a centralized platform that integrates HR functions, such as employee data management, recruitment, training, performance evaluation, and payroll processing. By automating these processes, organizations can achieve numerous benefits, including enhanced efficiency, data-driven decision making, compliance and risk management and employee engagement and self-service. Abigail: “In the business case you work out the benefits for your main business goals
in detail. Make it as concrete as possible: how much time will the system save managers and the HR department? What insights will arise from streamlining your data? What efficiency benefit does better alignment of the processes bring? Et cetera.”
For you as an HR professional, it may be as plain as day, but you will have to bring others along on your journey. Especially those who will have to pull out the purse strings will have to be convinced why this investment can no longer wait. “Don’t lose sight of the fact that investment requests are coming at the board from all sorts of different departments, so substantiate your case as best you can”, Abigail explains.
Step 3: Don’t forget the total cost of ownership
So to persuade anyone to change, you’ve got to be able to quantify the costs. The total cost of ownership (TCO) for implementing an HRIT system – also called an HCM system – vary based on various factors, such as the size of the organization, the complexity of the HR processes, the chosen software vendor, and the specific requirements of the implementation.
Conduct a cost-benefit analysis: evaluate the financial implications of implementing an HRIT system. Abigail: “While it is challenging to provide an exact figure without specific details, it is important to consider the following cost components when estimating the TCO: user licensing, implementation and customization, training and change management, ongoing service costs and support, internal resources to manage and support the HRIT system, integrating the HR system with other systems, such as payroll or finance software and vendor selection and consulting.”
It’s crucial to carefully consider all these cost factors and create a detailed budget estimation specific to your organization’s needs. Compare these costs with the anticipated benefits, make sure you quantify in Euros the benefits. Also consider implications such as decommissioning the obsolete systems and the savings this provides to demonstrate the system’s return on investment (ROI).
Step 4: Realistic timeframe and resources
Furthermore, a business case contains a realistic timeframe of how long the project is going to take. Outline a roadmap for implementing the HRIT system. Include timelines, milestones, resource requirements, and potential risks. Know who is going to get involved. “Consider which resources are available internally and which people you can free up to work on the project before, during and after the implementation. If necessary, engage external help if there is a lack of knowledge and experience in or if you simply cannot engage certain professionals because they don’t have capacity”, Abigail says.
You need to identify key stakeholders who will be affected by the HRIT system implementation. This includes HR, management, IT, and employees. Engage them early in the process, communicate the benefits, and address any concerns they may have. Abigail: “To be successful it is important to seek their endorsement and involvement in the project.” The business case evolves overtime as it goes through various decision processes within an organization. What starts as an order of
magnitude documents gets much more accurate and detailed over time as more information is compiled.
Conclusion
Writing a successful business case for HRIT system implementation is vital for organizations seeking to optimize their HR processes. Compile the gathered information into a comprehensive business case. Clearly articulate the problem statement, objectives, benefits, cost analysis, implementation plan, and stakeholder support. If you want, SuccessDay can advise and help you with this. “We work as a third-party advisory and are platform agnostic, we understand both HR and IT and come and work with you to fully understand your business and organization. We know all the pitfalls as it comes to implementing a global HRIT system.”
