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With the tremendous competition in the service industry, managers and business owners are constantly faced with the challenge of cutting costs without jeopardizing the quality of their work. To do so, it is necessary to have an accurate picture of a project’s financial standing, which requires accurate allocation of costs to the correct job.

Working in the service industry in Canada presents a number of challenges. 

Handling money, for example, can be challenging, because each province – and then each county within the provinces – may handle taxes and other fees differently. Invoicing and payroll are suddenly daunting tasks.

These are challenging times for businesses that provide contracting or other services to the Alberta oil industry. Overall, that sector is now – or will be – showing signs of a recession. Whether it’s a long-term recession or a short-lived one remains to be seen, however.

Fortunately, a number of contractors still have work in select specialties assigned to ongoing, long-term projects. The firms lucky enough to continue their services are doubtless drilling down into their internal operations to monitor expenses. The focus will, of course, be on the profitability of each project.

A recent game-changer in the oil sector is the declining price of oil, which puts a stranglehold on future growth for companies serving this sector.

The outlook is further darkened by Royal Dutch Shell PLC’s plan to cut hundreds of jobs at its oil sands operation in northern Alberta.

Now is the time for companies to start adjusting to changes impacting their revenue streams and to remain vigilant for opportunities – all while closely monitoring every project in their pipeline.

Deal or No Deal - It's Down to Financials

The last stop on our business road map is purchasing your new business management software system for your business operations.

(Want to read the first four parts in this series? You’ll find the links at the bottom of the post.)

All four of the main drivers of your scope for change management – organizational culture, processes, people, and technology – can be encompassed into your financial budget. That is, financials are the final decision maker for a “go” or “no-go” sign off to purchasing a business management software system.

Choosing Your Tool of the Trade

You should never choose your business management software sytem vendor based on the brand. To get the software that will offer you the best return on investment while simultaneously creating a better work environment, you need to meticulously investigate what each provider has to offer.

A three-point checklist should drive your selection:

• culture
• processes
• people

Preparing the People for Change

We have tackled two of the five stops in our business roadmap of implementing a business management software system. (You can read part one here and part two here.) Organizational culture sets the pace on how you can smoothly insert technological and system changes to your business structure. There are also the operational processes that need to be accounted for so that when it comes time for migration, you will be assured that you’ve covered all bases.

The most critical unit that participates in the implementation of change in your business, however, is your people.

Reinventing Processes Made Easy

When setting up the requirements for the new and enhanced way of doing your businesses processes, it is important to ensure that all activities are accounted for and that all alignments will be addressed with corresponding action plans.

Once you’ve decided which functional areas of your business you will integrate into an enterprise resource planning system, you should proceed to detail your current operational procedures. Put it into writing so that you will capture the full scope of the technological changes you’re planning for the business.

Keeping What We Do Now – Just Bigger and Better

Whether you’re simply installing improvements to your business structure or going all out and reinventing the wheel, a variety of tools will be necessary. In addition, before launching a full-scale change management, you should consider two things: your business’s culture and your current operational processes.