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Selling an HRIS to a CFO.
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Selling an HRIS to a CFO.
Discuss how to choose system that will yield the best results, as well as how to maintain it, and how to calculate its return on investment.
We are nearing the end of finding an HRIS system. I am getting ready to present to the CFO and CEO. Any suggestions on what specific points to bring up. Obviously why, how, when, etc. but we have pick
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Forums » Topic Forums » Technology Forum » Selling an HRIS to a CFO.
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Selling an HRIS to a CFO.
posted at 8/10/2001 3:47 AM EDT
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Posts: 7
First: 8/10/2001 Last: 1/13/2004 |
We are nearing the end of finding an HRIS system. I am getting ready to present to the CFO and CEO. Any suggestions on what specific points to bring up. Obviously why, how, when, etc. but we have picked the most expensive option out of 3 vendors. Our CFO is not very technical and because of that, may not see the justification for such a large expense. |
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Selling an HRIS to a CFO.
posted at 8/14/2001 2:38 AM EDT
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Posts: 1
First: 8/14/2001 Last: 8/14/2001 |
You may want to look at drafting up the opportunity costs of not having the system and cost it out to illustrate the savings you will be making. e.g. cost in HR time etc to create specific reports. When I bought mine the software company was actually able to prepare a cost justification for us that showed the savings we would make over time, even though initially there would be a large capital expense. This was the page our CFO focused on the most! |
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Selling an HRIS to a CFO.
posted at 8/14/2001 3:31 AM EDT
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Posts: 1
First: 8/14/2001 Last: 8/14/2001 |
I have to agree that an ROI analysis is the solid way to get buy in for a project like this. Unfortunatley, in the present economy, large capital investments that are 'non-revenue' gernerating are sometimes looked upon with more scrutiny and require more justification. I would have an analysis for how this new system will impact the organization on a cross-functional front. Be it more accurate/timely reporting. An ability to collaborate with other disparate systems instantly. You want to show that you are attempting to move HR from a transactional function to a strategic partner with Executive management. IT worked for us! Good Luck! Let me know if you would like to discuss. |
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Selling an HRIS to a CFO.
posted at 8/14/2001 3:43 AM EDT
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Posts: 6
First: 8/14/2001 Last: 8/21/2001 |
I am curious which vendor you have chosen. Basically in an HRIS system you get what you pay for. I am currently dealing with a system that was purchased for "best cost" and not for "best product." as a result we now have an HRIS that does not give us what we need and the time used to compensate for our current systems shortcomings can be very costly in more ways than just manhours or system expense. I would be happy to discuss further if you would find it helpful. |
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Selling an HRIS to a CFO.
posted at 8/14/2001 4:02 AM EDT
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Posts: 1
First: 8/14/2001 Last: 8/14/2001 |
I assume you've created a good business case for this system already; you need to translate that into terms that answer the concerns that the CFO and CEO will have. "Total Cost of Ownership" is a good issue to address -- how do the factors like ongoing support, training, etc. affect the overall cost to your company? But mainly, hit on VALUE. This should be regarded as a capital investment, enabling the business to increase the bottom line rather than an expense item.
Some things to keep in mind: What kind of communication will be most effective? Do the decision makers prefer verbal or written communications for the initial introduction to a new idea? Is there anything about the system that will help them "sell" the decision to other key stakeholders? If he/she is unfamiliar with the technical side, make sure you supply the benefits/cost breakdown in non-technical language. What will the system allow you to do that needs to be done? What resources will be eventually freed up to add to the company's productivity? And be sure not to oversell the break-even timing. Things are sure to go wrong, and you don't want to put yourself on thin ice by believing the timetable the vendor (*any* vendor) gives you. |
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Selling an HRIS to a CFO.
posted at 8/14/2001 4:29 AM EDT
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Posts: 1
First: 8/14/2001 Last: 8/14/2001 |
I am in the same situation, we have reviewed several payroll/HRIS integrated systems. It's not easy discerning the bells and whistles from the must haves. I agree with others, you must be able to demonstrate how the system you have chosen will streamline,improve or better analyze to impact the bottom line, or better communicate to employees and thereby improve productivity, retention and loyality.
I would be interested in knowing which systems you have looked at and how you have evaluated them. |
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Selling an HRIS to a CFO.
posted at 8/14/2001 8:54 AM EDT
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Posts: 1
First: 8/14/2001 Last: 8/14/2001 |
I understand your concern as I have just implemented such a system across several of our companies. I did a needs analysis of the manual process in each company today, documenting time, rework, required resources, required reports, data each business would like, if it was available, etc. and the savings as promised by the new system. Note, take the conservative savings. Additional benefits: the impact on Employer of Choice and other business initives. Also note how this system can dove tail to current in-house systems. (e.g. bi-directional data transfer)
1) Document what & how you are completing the process today 2) Document where you want to be from an HRIS system tomorrow and additional business inititives this will impact (Employer of choice, paperless HR, etc.) 3) Document the gap and how this new system will address it. 4) Document the cost and long term cost savings by implementing this system and the cost of not implementing this system. Don't forget to project out the increasing cost of headcount including benefits vs. a one time cost of the system. The first year a couple of the companies needed to loose a headcount to offset the cost. Regards, R.J. |
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Selling an HRIS to a CFO.
posted at 8/14/2001 9:15 AM EDT
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Posts: 1
First: 8/14/2001 Last: 8/14/2001 |
Do you have a copy of the "Cost Justification" that you can send me?
My email address is: john.izzo@perfectsoftware.com |
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Selling an HRIS to a CFO.
posted at 8/15/2001 12:30 AM EDT
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Posts: 24
First: 11/9/2000 Last: 4/1/2005 |
We have developed a HRIS Selection Checklist which has been of help for our clients in the search & selection of a new HRIS. We have also developed a Management Buy In Kit. If you would like either or both you can download from our website: www.dresserassociates.com
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