One of the greatest challenges encountered by those seeking to find software for their business needs is that those within the organization are not “professional” buyers. Think about it…the typical business replaces its core business systems – accounting, CRM/Fundraising, HR/Payroll, Client Management, etc. – about every 5-7 years. So, the opportunity, or even value in, creating a documented process for buying software isn’t very high; much less making this a skill requirement in someone’s job description.

This industry-wide problem is certainly a key reason for Solution Explorers’ existence. However, there are other software buyer resources available and we all can learn from one another. Two recent resources that I’ve encountered are – Andrew Urban, author of The Nonprofit Buyer and Edwin Henrikson. I’m currently reading Andrew’s book and have found valuable insights that every software buyer, even seller, can benefit from. As Andrew was advertising the book release via the LinkedIN Group – Nonprofit Technology Network – Edwin posted some insightful comments; of which I now want to share with you for consideration. I hope you find these of value as I did.

Comments by: Edwin Henrikson (re-posted with permission)

My key points regarding technology purchases are as follows…

1) Requirements: writing the requirements are the first step. The largest barrier is the staff may or may not know all the “rules” as defined by the funder(s) or their own agency. Many if not most staff operate on what I’ve come to call “tribal knowledge.” Many classic re-engineering issues come into play here, like “paving the deer trail” rather than building a highway.
2) Implementation: The capacity/ability of staff to adjust to the new technology or system is often over-looked. Agency culture with regards to change is an essential element to success. Also, simply having the talent and time to adopt the new system (train, use and improve) is often a huge barrier. With new systems often comes new skill requirements. Salesforce.com has found this issue as a critical barrier to donating systems to nonprofits. Complex Donor management systems and accounting systems also fall victim to this barrier.
3) Scales of Efficiency: many nonprofits can’t afford professional and complex solutions. However, even if the culture and talent of the staff can adopt a new system, simply having enough staff to manage the system well and train others is often a barrier. One way to overcome this barrier is to leverage shared systems or partner with other nonprofits in the area to pool resources.
4) Start Easy: Don’t overlook continuous improvement over the radical forklift replacement approach. Two actions can go a long way to freeing up capacity to then engage in major improvements – start with the basics, and consider process simplifications.
5) Technology is only part of the answer: I often tell my clients that any service is comprised of systems, people and process. All three must work together or the service suffers. I’ve seen many agencies take on changes in systems with no real consideration to how processes must change and how staff (people) will be impacted. This point ties into number 2 above. The agency can then be capacity starved to align the people and processes with the new system.

Note: Comments above were edited as appropriate for purposes of this blog. Click here to view the full details of the originating LinkedIN post.

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