To Convert or Not to Convert – That is the Question
Many times we are asked by prospects and clients, why should we convert old data? The question really should
be, why not convert the data? As in many situations, there are two sides to the question. Let’s address both sides so that you can make an informed decision when your time arrives to move to Ajera or PORTFOLIO.
Three questions are normally asked prior to any conversion conversation:
- How many active projects are in your current data?
- Do you trust your data?
- What reports do your Project Managers (PM's) really review for their projects?
The answers to the questions above will help you determine if a conversion is right for you, and if so, what
level of conversion you should purchase.
How many active projects are in your current data?
A basic guideline is, if your data has fewer than 50 projects, a conversion may not be necessary. If your data has more than 50 active projects, a conversion will definitely save your staff loads of time. They will not have to enter all the static information (name, Project Manager, Billing Manager, Rate Tables, etc.) or beginning balances. For example, using a project template to set up a project with five basic phases takes 5-10 minutes, not including the time needed to gather the information from the old data. Multiply 10 minutes by 50 projects, and you get 500 minutes or about 8.5 hours, just for data entry.
Plus, before entering any project information, you must manually set up the GL chart of accounts, vendors, clients, and employees within the new database. With a smaller number of projects, this usually is not overwhelming. But with more than 50 active projects, this means a lot of manual data entry for your staff. It can be done, but aren’t the time and energy of your team worth more than the cost of a conversion?
Do you trust your data
During a pre-conversion meeting, you will be asked if you trust your data. The question is simply asking, do you know what the data represents? For example, a beginning balance or project detail conversion will include unbilled work-in-progress (WIP). If the billing process is not completed using the standard billing tasks within the current software or if the billing reports are not used or trusted to be valid, a recommendation will be to not convert unbilled WIP. If you do not trust the current data to use the standard reporting capability, why convert that data? A second question will be directed to what project-related reports are prepared, read, and believed by PMs, Principals, and others in the firm. If a PM or Principal routinely needs to see the project cost detail, then a project detail conversion is recommended. But if those reports are not used consistently, converting only to a beginning balance level can make more sense as well as save money for other things – such as training. Lastly, if project data is not trusted and external spreadsheets and reports are being used by members of the firm, then why convert at all? The data coming out of a conversion process is only as good as the data going into the process.
What reports do your PM's really review for their projects?
This question leads directly to the level of conversion needed. As just stated, if the detail is not used by PMs routinely, then there is no real reason to bring it in. You can access the old database, which will still be used for various audit needs no matter how much detail is converted—there is always something left behind.
The biggest concern for most clients is the cost of the conversion. The cost should be validated against the cost of your staff’s time. You must consider who is going to enter the data, what tasks you will need to reassign to others during the entry period, how much overtime you will allow, and how many projects, clients, vendors, and employees will be entered into Ajera or PORTFOLIO. We can help you accurately estimate the amount of time needed from your staff to really assess the value of a conversion.
The right answer to the question, “Is a conversion right for you?” is an educated answer.
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