Deployment for Finance Transformation: Ensuring a Successful Go-Live

This post will focus on the eighth of the nine steps: Deployment for Transformation. First, we will finalise the design, prepare for deployment, and then deploy the Finance Transformation.

Our last post in this nine-part series looked at Prepare for Delivery. We looked at project and change management. We also covered the first three StageGates in the Project Delivery Framework, focusing on what is particularly pertinent to Finance Transformation.

Finalising Design and Preparing for Successful and Sustainable Deployment for Transformation

If you have been following the Loughridge Transformations method, you will, by now, have covered the following steps:

1. Strategy
2. Functional Fit
3. Baseline Assessment
4. Target Setting
5. Choosing Levers
6. Context
7. Preparing for Delivery

We can finalise the design and start the deployment phases of Finance Transformation at this stage. 

Transitioning to Deployment for Transformation

Our last post concluded our practical example by obtaining StageGate Three (Design) approval. We are now ready to move towards StageGate Four (Prepare to Deploy) and StageGate Five (Deploy).

Together, these StageGates cover the primary high-level phases of deployment for transformation:

Prepare to Deploy

Having passed StageGate Three, the fundamental or “global” design will already be in place. In “Prepare to Deploy”, the attention shifts to “local” legal or fiscal requirements. In other words, this is the phase where we apply the design standards to specific legal entities or business units.

Most of the “Prepare to Deploy” deliverables concern the remaining parts of the organisational design and the associated change management requirements.

Standard Organisation Model

At the previous StageGate, you will already have completed the following:

• Define Process Roles
• Determine Location
• Map Roles to Jobs
• Design Reporting Structures
• Define Competence & Behaviour Requirements for Jobs

The focus now is on completing and finalising the rest of the Standard Operating/Organisation Model (SOM). 

Final Job Mapping

You can complete the final mapping using the Standard Mapping of Roles to Jobs delivered at StageGate Three.

To explain this final mapping, we will use Manual Journal Entries as an example.

You will have mapped each activity to a role with defined competence requirements. Given the volume of roles covered in an extensive transformation programme, it is wise to maintain a naming convention. For example, RtR010 could be a role within Record to Report, preparing Manual Journal Entries.

In this Manual Journal Entries example, we must also pay attention to the Segregation of Duties. Therefore, Approve Manual Journal Entries would usually be a separate role to maintain the segregation.

These roles combine to form jobs. Therefore, each job will have attributes and competencies – both technical and behavioural – driven by the roles underpinning it. Again, it is wise to maintain a naming convention; for example, the closing team manager’s job is PEM100 (PEM: Period End Manager).

Last but not least, the jobs fit in the standard reporting structure and should be validated for the specific business unit or legal entity. To conclude the example, PEM100 will sit in Period End Team under Record to Report within Finance.

Over and above the distinct advantage of a clearly defined organisation that includes accountabilities and responsibilities, a further additional benefit within the roles-jobs-structure definition is the possibility to leverage the ERP functionality. It is the case that most ERPs cater for role definitions, and as such, you can tailor the system access for each role and establish a Segregation of Duties matrix.

Work Instructions & Training

If your SG3 deliverable on work instructions only was detailed to Level 5, now is the time to complete them to Level 7.

High-quality work instructions are essential for a successful deployment. They are living documents that the owner or user should regularly update to address, for example, error resolutions.

The process experts and owners should also sign the work instructions off to ensure accuracy and quality.

You should also be able to develop any supporting training material at this point. This training material typically goes beyond the mechanics of the process and is vital for the user to gain an overall sound understanding of the end-to-end process.

Job Evaluation

Change Management and Employee Relations

In many legal frameworks, specific employee relations activities are mandatory when work is off-shored. However, even in locations where requirements are low, organisations often have values and approaches that they want to uphold during the deployment of organisational transformation, so it is essential to recognise employee/industrial relations.

Given the scale of change involved, it is critical to have a robust change management plan that appropriately recognises the change’s extent, nature and depth.

Checkpoint: Questions to Ask Before Moving On

• Do we understand what we are starting, and is the initial structure in place to move forward?
• Are we ready to prepare the organisation for the new operating model?
• Are we ready to start operating with the new model?
• Is the new operating model working as per intent? (applies both in SG4 and SG5)

Deploy and Stabilise (SG5)

In the final SG5: “deploy and stabilise”, the key deliverables are:

• Shadow Operation
• Parallel & Standalone Go-Lives

Shadow Operation

Actual handover of processes now takes place between on- and off-shore locations. The handover process is also known as work shadowing. There are two primary drivers of the duration of this step – first, the complexity of the process and second, the degree of standardisation. A more complicated process may require a more extended work-shadowing phase. Standardisation, however, has an even more significant impact on the duration. The higher the level of standardisation, the less time will be needed in this phase.

Parallel Go-Live

Once the handover and training period is complete, there is a decision to go live or delay. Unless you face significant issues or have serious concerns, we recommend going live via Parallel Go-Live. Parallel Go-Live means that the off-shore team performs the process while closely monitored and assisted where required by the on-shore organisation.

In almost every handover situation, something that has not been adequately covered or documented will arise. The parallel go-live period is intended for the off-shore process operator to demonstrate how well they perform the process in a “safe zone” where help is at hand. Again, the length of the parallel go-live period varies, but one to two months would not be uncommon.

Standalone Go-Live

Once the parallel go-live period is complete and both off-shore and on-shore teams are satisfied with the performance quality, the off-shore team takes over responsibility for the process. Operations fully commence in the new working environment.

Final Thoughts on Deployment for Transformation

A final note on this example: you may have noticed that we have covered more detail for the other StageGates (1-4) than in the final StageGate 5. That is no coincidence. The more effort you put into each StageGate – especially the SG4 preparation stage, the smoother the actual deployment.

Almost every large-scale project will face time pressure, and it is tempting to try to save time at the earlier StageGates. However, this approach will likely lead to a lengthy and potentially messy SG5 and go-live situation. Decision-makers are responsible for following through on previous StageGates and ensuring that the project team executes the appropriate work at the correct time.

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Interested in More Finance Transformation?

Our next post will focus on the ninth step: Sustaining the Change.

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