need new vacation rental software?
TRANSCRIPT
Getting New Property Management Software?
The Do's & Don’ts for a Successful Software Change
Doug Macnaught, Tom Kaczmarek, Stuart Pack
Who we are:
Doug MacnaughtThe VRM Consultants & Macnaught
Consulting
Tom Kaczmarek (Tom K)The VRM Consultants & TomK Consulting
Group
Stuart PackCEO - Resort Realty – Nags Head, NC
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HANDS UP – What’s our Audience ?
Who here are NOT Property Managers ?
Property Managers less than 50 Units ?
Property Managers 51 – 250 Units ?
Property Managers 251 – 500 Units ?
Property Managers 500 Plus Units ?
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It’s Not VegasWhat Happens Here – Stays Here !!!!
Software companies – raise you handsBlindfolds on ?
Are there any of you that are looking for software at the moment ?
Any one JUST ordered a new system ?
Any one thinking of writing their own system ?
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Custom Software - The Do’s & Don’ts
Build your own! DON’T DO IT! Programmers Timing Rules
apply (next variable x 2)! Scope Creep will kill you! Will cost minimum 3 x
original budget! You have to think of
everything! Development never stops! Did I say – DON’T DO IT
Off the Shelf The BEST option (IMHO) You can start using it
immediately Continual development
will benefit you Large range of connectivity
and distribution options Security in Numbers You can see a demo today
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Is it Time to Change ?
Can you think of 3 Reasons to change ?
Do you have the staff resources ?Do you have the budget ?
Will you need to change your Web Site ?What about other systems ?
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The Four Pillars of a Successful Software Change
Understanding Analysis Selection Implementation
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Understanding your Business
The Do’s
Take the time to do it right
This should be a thorough & comprehensive exercise.
Identify the people that make your business what it is. Then Listen to them.
Work with each department head to clarify how their department uses your existing systems.
Ensure they review Daily, Weekly and Monthly usage.
See what “Add On” things their departments rely on.
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Record the Requirements (spreadsheets are good)
Each Department should:
Involve all relevant team members.
Log/List each Feature, Activity & Process they use.
Identify whether it is a “MUST HAVE” Item.
Identify desired functions missing from the current system. These can be “Must Haves” or “Nice to Haves” (your Wish List).
Review, Review, Review – its all in the details!
The more you know in advance, the less you are surprised later.
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The Don’ts
DON’T :
! Assume that you know how every department works.
! Forget to listen to the Quiet people, they often know more than the Loud & Forceful ones. (Drag the info out of them if that is what it takes.)
! Ignore the people that don’t use the system, they deal with the output every day (housekeepers, accountants, owners)
! Forget Seasonal Tasks !! Review what you do year round.
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Analyzing your Needs
The Do’s
Take the time to do it right
Establish the StakeholdersExecutive TeamDepartment HeadsRespected people in the company
Make clear that they won’t get everything they want.
Make sure everyone knows it isn’t a democracy! Someone has the final say.
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Consolidating and Rating the Data
Consolidate all Dept Requirement information into a single spreadsheet.
Add a Rating Column – scale from 1 to 10
Send to every Stakeholder and have them Rate EACH Line and also identify Must Haves (11’s or 15’s).
Make Sure they Rate every line and not just the areas they use.
Consolidate the Spreadsheets by adding a column for each stakeholder’s ratings.
Develop the “Final Company Rating” as scientifically as you can, no matter how, make sure it reflects the true importance to the company.
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Get Buy In
Send the Finished Rated Document to the Stakeholders
Have a Spirited meeting to explain the Final Ratings.
Listen to the Stakeholders and let them Lobby for things they consider priorities.
Make Changes if they are relevant.
Even if they don’t like it – they HAVE to AGREE that it is the right thing.
Get Buy In as a Whole Team.
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The Don’ts
DON’T :
! Be Bullied into changing something to “Appease” people.
! Alter the priorities based on Emotion..
! Forget to include the “Must Have” items.
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Selecting your Partner
The Do’s
There are 4 Stages to the selection process.
SearchReviewNegotiateDecide
Tread carefully Vendors are now involved !!
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Search
This a Complex & Time Consuming process, there are almost 25 PMS Vendors ! More than half are at this show.
Take your Final Ratings Document and Narrow it down to the Highest Ranked Items and Must Haves from each section to create a smaller Initial Request for Information for the Vendors.
Include your Wish List Items.
Send it to each of the Software Vendors and ask them to respond by a certain date.
Make sure they’ve answered your Key Questions and met you Must Haves before you go any further. If not, it is a waste of your time.
Vet the Vendors.
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Review
Dispassionately review the responses you receive.
Eliminate those that don’t fulfill your Must Haves.
Eliminate those that don’t have your Highest Ranking Items.
Ideally you can get to a Shortlist of 3 Vendors.
Send a much more comprehensive Request for Information, include as much information as you can to help the vendor structure the demo.
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Demo Team
Pick your Demonstration Participants
Could be the Stakeholders or a smaller group.
All participants need to attend every demo.
Do not go ahead if they are not all present.
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Review (The Demos)
Let the Vendor do their Demos – they need to show you their WOW’s
Encourage them to Focus on core functionality. Make sure you see all that you need to see. Rate the responses to your Must Haves & High Priority Items. Make one person responsible for collecting and collating this info.
Ignore the Irrelevant
Make it ALL about their product. It doesn’t matter if you don’t like their tie, aftershave or perfume. Where they took you to lunch or dinner is not important.
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Negotiate
Get the best deal you can !! But Cheapest isn’t always best.
Gather ALL the costs. Compare Apples v Apples If it is Pay per Booking or Performance – look at Good Years and Bad. Support & Hosting Costs ? Training & Installation Costs ? Data Conversion – Cost ? What ? How much manual input ?
Extra Costs
Web Site ? New Hardware & Interfaces ?
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Decide
Decision Time - You are Selecting a Partner for the next 5-10 years
It’s a Relationship, not a Purchase.
No Vendor will have Everything.
Don’t ignore the Must Haves.
If you can’t see it, you can’t use it. If they promise something, get it in the contract.
Get References and call them.
Speak to your Peers & Competitors (if they are trustworthy).
Consider the Strength of the Vendor. Compare all aspects, not JUST price.
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The Don’ts
DON’T :
! Be Influenced by the Shiny Booth or the Swanky Restaurant.You wouldn’t buy a house based on this so don’t buy software either.
! Assume a feature is the same as the last time you used it. Things change, if you need to use it, make sure you see it.
! Depend on Future Development. It may never arrive. If you need it, get it in the contract.
! Ignore your Web Site & Channel Partners – the implementation might be different for Images, Descriptions, Pricing and Booking Rules.
! Skimp on Training & Installation (expect min 20% of system cost)
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Implementing for Success
The Do’s
Take the time to do it right. Nominate a Project Manager.
Get a SW Company Contact & have a Kick Off Meeting.
Develop a Written Implementation Plan. Require Regular Progress Calls. Set Milestones and deadlines,
make sure they are met. Don’t miss your own deadlines.
Include your 3rd Party Vendors.
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Set Up & Data Conversion
Set Up If possible, have setup done in your offices. (pay for it, it is worth it) Review your priorities and make sure you verify your Must Haves. See how the system looks after set up. Keep your external systems in mind. Web Site, Interfaces etc.
Data Conversion Understand how the conversion/migration process works,
Who is responsible for what… DO NOT CONVERT FINANCIAL DATA. Open a new Bank Account and use it for the new system. Verify any data that is converted. Expect to pay overtime or hire extra staff to Manually enter data. Expect to Run Parallel for at least 1 month.
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Training
A Poorly Trained Staff can compromise the whole project
If possible, have training done in your offices. (pay for it, it is worth it) Ask the Vendor for a Training Company that mirrors your system. After a training session, devote time for Practice. Run Mock Sessions, make them use the system under pressure. Repeat sessions and Review progress. Pay Overtime for staff to have Practice time. Use online training tools as backup to real human training.
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Communication
Communicate, Communicate, Communicate.
Internally with your Stakeholder team. Externally with your Software Vendor. Internally with your general staff. Externally with your 3rd Party Companies. With your Owners, Vendors, and Guests.
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The Don’ts
DON’T :! Skimp on Training – Worst Mistake you can make.
! Start the install until all agree what is happening (Kick Off Call).
! Change your requirements during installation.
! Forget Credit Card & Insurance Vendors.
! Hide Internal Problems. They will exist and it is in no-ones interest.
! Keep your Vendor in the dark. If problems exist they are as eager to resolve them as you. No-one wants a failed Installation.
! Burn your Bridges.
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Summary
Understand your Business Analyze and Prioritize your Needs Review your Options Dig Deep to ensure the best match Vet the Vendors Be sure you see all the features you need are actually working Negotiate the Best Deal not the Cheapest Speak to other Users Invest in the Training and Installation Communicate, Communicate, Communicate
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