Selecting software can be a long and exhausting journey. The author of this article, who also joins us along with many others at the September 13 Family Wealth Report Family Office Fintech Summit, discusses the issues.

The following commentary comes from Erin Hulse, the founder and owner, and family office technology consultant at Deviate Consulting. In this article, she looks at some of the main issues to consider ahead of implementing technology, and what sort of mistakes to avoid. The editors are pleased to share these views, and the usual disclaimers apply. Email tom.burroughes@wealthbriefing.com

Selecting software can be a long and exhausting journey. Sometimes the energy and focus that goes into this process causes clients to overlook the next step, which is planning for a software implementation. Have you heard horror stories of implementations gone awry, or have you experienced it yourself? Whose fault is it when implementations fail? Each party probably has a small hand in these failures, but what exactly can we pinpoint as the main cause? Here are a few tips to consider when you are planning for a successful implementation.

-- Consider the costs – It’s the million-dollar question – “How much is this software and software implementation going to cost?” I am asked this question more than anything else. The vendors won’t let you in on this info until you’ve gone through a few calls and demos, which is time wasted if you’re not ready to invest at their price. Some price ranges for an implementation: The one-time cost for an implementation can run from $50,000 to $200,000.  

This might be paid to the vendor, consultants, or a combination of both. Vendors typically quote the implementation as the same as the first-year software subscription price. If you’re not ready to absorb the costs associated with implementing a new software platform, put your search on hold. This will save time and frustration on not only your part, but for the vendor as well.  

-- Take an honest look at your staff and resources – Do you have enough experienced staff to dedicate to the project? Are they willing and able to work extra hours to stay on task? We have vacations in the summer and time off for holidays in the winter. People get sick, take maternity or paternity leave, or exit the company altogether. Your staff are also busy with their current jobs. Recognize the reality of these factors and plan accordingly.

--  Data availability and integrity – Everyone thinks that their data is cleaner than it actually is. How fast can you export the data from your old system, and can you get it into Excel? How long will it actually take your banks and brokers to send the data you need? Longer than you anticipate. Know that gathering and cleaning your data is a much more extensive process than you expect.

-- Hold the vendor accountable – There should be repercussions if the vendor misses specific deadlines. Contracts should include these details in the project plan. However, vendors will only comply if all prospects start asking for this accountability. Creating a very detailed project plan with deadlines for milestones that are tied with payments is crucial when signing a contract. Work with a consultant or other professional who is familiar with typical timelines for your project and can form a realistic plan.

-- Be Conservative – Vendors will agree to meet most any timeline presented during the sales cycle. Expect two to three times the estimated timeframe to complete the implementation. Events such as vacations, holidays and regular work come up that can and will delay the project. The vendor might also get busy with other projects and not be as responsive at times. Build in some time for delays in the project, especially if you are being pressured for timelines from invested parties. Report creation and specialty integrations can also take more time than expected when being built out by the vendor.

Anything that is dependent on outside parties (banks, brokers, middleware) can, typically, cause of delays.

These are just a few of the topics we will cover at the FWR Family Office Fintech Summit on September 13 in New York. We look forward to seeing you there!