Choosing the wrong software

analysis
Aug 29, 20063 mins

The best application vendor doesn't always win … even when it does

The road to new software can follow a strange and convoluted course. I was feeling optimistic as I began a new consulting engagement for a national retailer, as part of a team developing an RFP (request for proposal) for a new HR/Payroll application. True, there were 12 divisions, and each one required a detailed process-flow-and-requirements definition. But having met with the key users in each area, I was confident we’d be able to sort everything out. In addition, we enjoyed the support of the VP in charge of HR, which helped us avoid many of the stalling tactics that typically occur during such efforts.

Months later we ended up with two three-inch binders of requirements, which we mailed out to vendors. Then we waited for their responses. Two vendors I’ll call “HRC” and “Acme Software” made the cut. Several weeks later they came in to show off their performing dogs and ponies.

The IT people immediately saw the technological advantages and superior functionality of HRC’s Windows-based offering. We also saw that Acme was trying to sell us a hasty retrofit of their mainframe software sitting in “a window.” Unfortunately, the users we were working for thought both offerings were essentially identical. In fact, since Acme had a persuasive representative with vast experience in payroll, and as our user team had a strong payroll (vs. HR functionality) bias, the retailers were starting to lean toward Acme.

Then, Harry, our project manager (whom I knew for a fine programmer, but no politician) surprised us all with a brilliant play. For some reason, he was always at odds with Bob, the key HR staffer who was leading the evaluation. Harry and Bob always took opposite positions. Anyway, during a lunch break, I overheard Harry confiding to Bob how much he liked Acme’s offering. A few minutes later, back in the conference room, the user team flipped its position and voted for HRC — our IT team’s choice!

From that point on, the evaluation moved steadily forward to select the vendor we knew would be superior. I thought we were home free. No such luck.

HRC submitted a two-page license agreement to be reviewed by the legal department and the users. By the time the negotiations were completed, the document had blossomed to 26 pages of performance guarantees, special clauses, and a dazzling array of stipulations.

Just as this process seemed to be winding down, we received word from the corporate executives that the deal was off! Too expensive, we were told; we’d have to purchase too much high-end hardware to support the system.

We were devastated. Our baby was dead. All we had to show were two three-ring binders of requirements. And I was out of a job.

As it turns out, those binders were important. Several months later the information they held was used to redefine job descriptions and create critical enhancements to the existing in-house HR software.

Ultimately, 60 developers were hired to handle that workload. Sadly, I wasn’t one of them. But that’s not the end of the story. Nearly three years later, after a change of CIOs, a new management team (which still had a bias for payroll functionality) took over the reins of power. And guess what? They went right out and bought Acme’s HR/Payroll package.

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