Case study - Proceeding without approval

Client situation

Client had done some research and followed a very ad hoc approach to begin the system selection. Client had contacted vendors and had demonstrations of their technology from two of the four vendors contacted. Relatively junior staff members in the organization attended these demonstrations. Client had not yet received CEO or Board approval. Some members of the senior management team were broadly aware of the project, but no explicit approval had been given.

Background

The organization had grown quickly in revenues and had managed in the past on highly manual processes that worked, and of which management were largely unaware. Regulations in the industry had changed, making the changes to these manual processes difficult to manage and a significant task. The individual driving the task was the newly promoted CFO and in the past due to the rapid growth had worked highly autonomously. Challenges facing the client The client had to work through the following challenges: Vendors had invested significant time and effort to date; Vendors had contacted Board members through existing relationships who were unaware of the project; No process or methodology had been followed; Client was losing credibility with the vendors; Board members were starting to ask questions about the project.

Key Outcomes

Rapidly developed an approach to present to the Board, using the system selection online methodlogy; Developed detailed business requirements; Communicated status and plan with the vendors.

Result

Internal controls and governance review initiated by the Board; Project delayed by six months; Staff frustrated by the delay, staff turnover went to 35% during the six month delay.