Many organisations implement Electronic Document Management (EDM) and workflow in order save costs – often as part of a ‘Best Value’ initiative. In order to get the best from the business case the implementation is examined carefully to reduce cost. One element that can be seen as optional (and thereby dispensable) is independent consultancy. This paper shows how this is usually a false economy, which can lead to under-achievement of business benefits and non-strategic solutions.

Consultancy in the context of EDM and workflow relates to the analysis of the business need and the definition of a solution. Potential purchasers have three options:

• To undertake the analysis and definition themselves without the benefit of a full understanding of the issues and the potential benefits of the technologies
   

• To choose a system by comparing the features offered by a selection of vendors and engage the services of their retained consultants to design their system. This includes consultancies that have an implementation arm and therefore a bias towards a particular system or systems, or
   

• To engage the services of an experienced independent consultant. Independent consultants maintain close contact with all the system vendors and keep up to date with new developments in the technology and the marketplace. They have no financial incentive to suggest an electronic solution, or any particular system.

There are a number of risks in implementing EDM and workflow systems (referred to collectively as EDM hereafter):

EDM is a very powerful tool that can provide real business benefit in many business areas. However, it is not a panacea for all problems and is sometimes inappropriate for technical, organisational or human factors reasons. There is a particular danger that it can be seen as a solution to poor existing procedures and standards. Implementing EDM in these situations is ‘automating a mess’. It will often be the case that the major business benefit will be gained through review and improvement of existing methods. In some circumstances this alone will yield the required business benefits without implementation of EDM. An EDM vendor is highly unlikely to explore this avenue, whereas an independent consultant is free to make the most appropriate suggestions regardless of whether this results in an EDM system or not. A central Government client opted to slightly expand an existing database and throw away the paper following our analysis of their processes.

In choosing a supplier of an EDM system, an organisation is acquiring a significant business partner and embarking on a long-term relationship. It is important that the right decision is made in terms of the functionality of the system, the support and training offered, the stability of the vendor organisation and their ability to meet future needs.

EDM is a complex subject and there are a wide variety of vendors providing services. Potential purchasers who are new to the field are often unaware of the full range of functionality and the interdependence of features and processes. They may not appreciate the ability to integrate with or replace existing systems, and frequently fail to recognise the difference between the possible and the impossible.

It is very difficult for inexperienced people to define a system that will truly meet their needs. This results in the issue of Invitations to Tender that do not detail the necessary functionality and standards compliance in terms that are sufficiently meaningful and specific. If the ITT leaves vendors room for interpretation, it makes it very difficult to make comparisons or to ensure that the resulting selection process arrives at a system that fully meets the perceived needs. An independent consultant will assist the client to structure their ITT in terms which are unequivocal and which make direct comparison of the responses more achievable. Left to themselves, the vendors will major on their strengths and gloss over the weaknesses. An effective ITT will require answers to the questions some may wish you had not asked.

The EDM marketplace is maturing, with newer entrants offering significantly reduced costs of ownership. It is not always the case that a more expensive system is better value for money. The variation in costs between systems can exceed 100%. Only an experienced independent consultant can guide a client to purchasing the most cost-effective and appropriate system.

As well as failing to identify appropriate areas for implementation (see above), it is also difficult for inexperienced staff to achieve full benefit from the implementation of EDM. This can be due to a number of reasons:

• Inexperience of managing the relationship with EDM vendors, in terms of reasonable levels of performance, responsibilities, contractual issues etc. We recently saved a Local Authority client about £20,000 by spotting an unreasonable commercial condition and supporting the client during the ‘best and final’ negotiations.
   

• Lack of a comprehensive information strategy. EDM supports the wider availability of information within an organisation. However, many organisations do not have an information management strategy. This should sit between the business strategy and the IT strategy. Lack of an information strategy can lead to problems with interpretation of the significance of information and a lack of common definition of terms such as ‘client’, ‘sale’, ‘property’ etc.
   

• Failure to take a strategic view. EDM is a very generic technology that can, potentially, manage any documents and business processes within an organisation. It is likely that one successful implementation will lead to interest being shown by other areas of the organisation. Systems are often implemented for a specific purpose without any consideration of the broader needs of the organisation. An independent consultant will ensure that an appropriately broad view is taken when implementing EDM, even where the initial requirement is for a single business unit.
   

• Lack of awareness of the human factors issues at all levels of the organisation. This is one of the most common causes of failure in EDM systems due to the changes in working practices involved. If managed poorly, the implementation can take place in an atmosphere of trepidation and resistance rather than open-mindedness and anticipation.
   

• Failure to implement sound records management policies. EDM is not a substitute for poor practices – indeed good practices are even more important in an EDM environment as the scope and allowing other departments access to information often increases the span of documents.
   

• Lack of knowledge of the IT implications of EDM. EDM can place heavy demands on networks, especially wide-area links to remote offices. One differentiator between systems is the scale of this impact.

A large part (often the majority) of the work of an independent consultant needs to be performed anyway as part of the implementation. That is to say, if they do not engage an independent consultant to carry these out, the client will end up paying a vendor to perform many items. These include user interviews, user requirement specification, functional requirement specification etc. The fees charged by independent consultants are similar to, and often less than, those charged by system vendors.

More importantly, there is always the danger that the vendor’s analysts will mould the client’s requirements to suit their product (‘when all you have is a hammer, everything looks like a nail’). An independent consultant is totally free to specify the client’s requirements without any conflict of interests and to then help the client select the vendor whose product most closely matches these needs.

Independent consultants are obviously pleased to receive repeat business from their clients when another department decides to adopt EDM. They do not expect to have an on-going role with their clients once the system becomes operational. We offer our services as a series of discrete tasks with defined deliverables. Each typically takes only a few days. Our style is to encourage clients’ understanding of the issues and to effect skills-transfer to enable them to confidently manage their system and its future development. This enables the client to become independent of us and puts them in a stronger position in relation to the vendor, since they are not dependent on them for information and advice at all stages.

We believe that you will like our client-centred approach. We are happy to demonstrate this to you at an introductory workshop. Please call for further information.

Please call Dik or Joy Allison for further information: Tel 01777 871506 or e-mail info@allicon.com.

© Allison Consultancy, Egmanton, 2005. This paper may be used for personal research purposes only. It may not be reproduced in whole or in part without the prior written consent of Allison Consultancy.