One obstacle that many HR executives face is trying to convince a skeptical CFO to make the move to HCM Cloud. Your CFO will likely want to see a compelling business case before approving your idea, which is understandable. A winning HCM Cloud business case is packed with financial analyses and justifications—right up your CFO’s alley. A recent Oracle blog explored the best ways to build a winning HCM Cloud business case to convince your CFO and your organization to move to HCM Cloud.
There are undoubtedly other ideas being thrown around your organization, and your CFO may ask why he or she should fund your project over others. The problem is that many HR executives simply expect their company leaders to clearly see the business value of HCM Cloud and don’t come prepared with an answer to this question. A winning HCM Cloud business case should have a plan, timeline, and budget that are realistic and definable. However, you should also tie your plan to your company’s overall business strategy. Show your CFO how this implementation will benefit your business and why it should be a top priority. Build your business case around business priorities within your organization so your CFO cannot deny the benefits that it will bring.
How to Structure Your HCM Cloud Business Case
Many HR executives have likely never created a full-fledged business case. It’s important to prepare and understand all of the information that needs to be included. Remember, you’re not just asking for money. You’re asking for your company’s leaders to embrace your vision for the future and prioritize this project. In order to build a winning HCM Cloud business case, you’ll need to include four key components:
- Executive summary: Every good business idea can be described on one page. If you can’t explain your case through an elevator pitch or a one-page summary, you need to rethink it. The best executive summaries are roughly five straightforward points.
- A case for change: In this section of your HCM Cloud business case, explain why your company should invest in HCM Cloud instead of going with other options. Lay out your vision and explain how this project aligns with your company’s overall business goals. Additionally, you need to make it clear why this project needs to happen immediately. This section is the most effective portion of your business case, and it could be helpful to have it vetted or co-written by a line of business (LOB) executive who will directly benefit from the investment.
- Financial analysis: As an HR executive, you’re not expected to be number-savvy people all the time. However, the numbers in your business case will be crucial to your CFO and other stakeholders. It could be helpful to find someone from Finance who can help you gather costs and benefits. Don’t overthink it—just provide the essentials.
- Strategy and execution plan: This portion of your HCM Cloud business case should have two parts—the deployment schedule and the mitigation strategy. You’ll need to ensure your company executive that the project will be on-time and on-budget. It’s also important to note that you don’t necessarily need to specify the brand of technology or vendor that you want to use.
Think Bigger About the Cost Saving Numbers in Your HCM Cloud Business Case
When you’re putting together the numbers in your HCM Cloud business case, don’t sell yourself short. Many simply add up IT cost savings and stop there, but there are several other business and productivity benefits that you’ll want to capture in order to strengthen your business case. There are many solid business reasons for funding an HCM Cloud project that have little to do with IT savings. Quantify everything that you’ll be able to do faster, cheaper, or more efficiently as a result of your HCM Cloud implementation. The results you come up with could be the deciding factor for your CFO and other company leaders.
While the numbers are important, they aren’t everything. Pitch your project on numbers but close the deal on business value. Show your company leaders the many benefits that HCM Cloud could bring not only to HR but to all aspects of your organization.
For more Oracle HCM Cloud resources, case studies, best practices, etc., check out Quest’s Oracle HCM Cloud Content Center. There are resources and training available for all aspects of HCM Cloud, including payroll, analytics, recruiting, and more!