The Building Blocks of a Foolproof Business Case for Moving to a Cloud HCM Solution – Part 2
As I said in part one of this series on building a business case, selling a Human Capital Management (HCM) Transformation project in any business is twice as hard as getting approval for initiatives that come from Operations or Finance. I previously covered how to assess your current HCM state and define your vision for the future. In part two, I will detail how to give that vision more substance and make your plans concrete.
It starts with figuring out how you’d like to deliver HR processes to your employees.
Steps for Finalizing Your HCM Transformation Business Case
Agree on a Future State Delivery Model
Example: Will processes be initiated by managers and employees directly through online access, thus eliminating administrative work from the HR function? Many of our clients have had great success enabling employee and manager self-service. That includes a Canadian bank that has cut costs by enabling self-service.
Summarize All Costs of the Transformation Project
- Subscription costs
- Labor costs: Internal IT and line of business, external consulting costs
- Travel Expenses
- Training costs
- Costs of decommissioning existing systems
For the external implementation estimates, obtain a RACI and a Project Governance draft. It is crucial to understand from your potential implementation partners where their responsibility ends, and yours begins.
Build Out Your List of Assumptions
At this stage, you will not likely have all the details to cover all scenarios. A list of assumptions provides clarity on what is still unclear.
Identify Risks of Engaging in this Transformation Journey and Mitigation Strategies
Understanding the risks and planning of how we manage them can save you many sleepless nights.
Document your Strategic, Intangible and Tangible Benefits
Here is where the battle is lost and won. If you want buy-in from the executives in the organization, the business case cannot be only about strategic and intangible benefits. Using the data collected from engaging with representatives from both IT and lines of business and using data obtained from operations, will give much credence to the results presented.
Present the Summary of Projected Costs and Savings over 5 and 10 years with the Proper Financial KPI’s that Speak to Both a CEO and a CFO
Showing the Net Present Value (NPV), the Internal Rate of Return (IRR), and the Payback Period will be the clincher for getting the program/project approved, providing the results are compelling. It would be beneficial to know the expected thresholds for project approval for all the previously mentioned measures.
Present Your Business Case Findings to the Executive Leadership Team
Preparing a report is not enough. A key to getting buy-in is to engage with the executive leadership team so that you may handle questions and objections in person.
What’s Comes After the Business Case in the HCM Transformation Process?
Once your Business Case is approved, you need to select your cloud solution. In the next part of this series, we will examine all-in-one cloud solutions versus taking a best-of-breed approach.