Cloud-based enterprise resource planning (ERP) software is a game-changer for nonprofits. Rather than relying on disconnected point solutions, the organization can integrate its business processes into a single platform.
This centralized system not only allows for better decision-making but also helps to streamline workflows and improve resource management.
Sounds great, right? But there's a catch. Going from manual workflows and legacy systems to an agile, accessible, automated cloud platform can be a bit of a culture shock.
To get the most value out of your ERP solution, you'll need to adapt. You'll need to change both how you think and how you operate. At this point, you're probably expecting a spiel about continuous improvement and agility.
That's surface-level. Today, we're going to go a bit deeper. We're going to go over some practical changes you can make as an HR leader in order to prepare your business for not just the cloud, but everything that comes after.
In many ways, HR is the red-headed stepchild of organizational units. Part of the problem is that people aren't entirely sure what HR is supposed to accomplish. They know the department's general responsibilities, sure — talent acquisition, onboarding, volunteer management and conflict resolution, to name just a few.
They can't really see past those roles to the department's strategic value. This is at least in part because historically, there wasn't one. The HR team mostly took care of administration and operations.
Strategy was the domain of other people.
That's no longer the case. People — employees and volunteers alike — now expect more from the organizations they work with. At the same time, distributed work and emerging technology like artificial intelligence have brought forth a host of challenges that cannot be solved by technology alone.
With all this in mind, it should come as little surprise that the role of Chief Human Resources Officer (CHRO) is one of the fastest-growing in the C-suite. HR leaders are no longer solely administrators. They now play a pivotal role in shaping organizational culture, planning and executing long-term hiring initiatives, and supporting workforce enablement.
What this means is simple: Your team needs to be involved in rolling out your cloud ERP solution — and any other new technologies you might choose to deploy.
Arguably the most compelling thing about solutions like Sparkrock 365 is the way they consolidate business processes and break down silos. Instead of operating on loosely-connected islands, your teams can start collaborating directly with one another. In theory, anyway.
In practice, shattering data and communication silos isn't going to achieve much if the relationship between your organization's various departments is an adversarial one.
And few departments have a tendency to lock horns as frequently as HR and finance. CHROs tend to view the Chief Financial Officers (CFOs) as penny-pinching gatekeepers at best. CFOs, on the other hand, may view the CHRO as frivolous, all too eager to break budgetary controls.
You need to get the two to work together. Get them to combine their strengths and expertise. Armed with a modern ERP solution, they'll have the potential to not only greatly improve the worker experience, but also unlock new cost efficiencies across the organization.
Here's how HR can get the ball rolling:
Every department has a part to play in cloud migration.
IT is responsible for technical planning, deployment, and configuration. Finance manages licensing and budget. As for HR?
Your job is to get people ready for what's coming. That means figuring out what's required to onboard people onto the new software. It also means cultivating the necessary changes in culture and mindset.
Throughout the process, your focus should be on what the new software will allow people to achieve. Figure out how the ERP solution will help each segment of your organization, and make sure to convey that knowledge as part of the onboarding process — finance, for instance, could benefit from increased transparency, better accountability, automated workflows, and easier reporting.
A good leader can make great choices based entirely on intuition. A great leader knows how to pair that intuition with business insights and predictive analytics. There's a good chance your ERP platform will include some functionality to that effect.
Even if it doesn't, using it to eliminate silos means it'll be easier to access and analyze organizational data, which can give you a deeper understanding of:
It's easy to assume that, since you're a nonprofit, you don't need to worry about cyberattacks. That's a mistake. While you might not have any trade secrets to steal or business-critical systems to lock down, what you do have is data beneficiaries, including names, email addresses, and even social security numbers.
A criminal could use that information to steal someone's identity or commit fraud, certainly. If anyone associated with your nonprofit is an executive in a for-profit company, you've also opened the door to a spearphishing attack. Cybersecurity needs to be part of your organizational strategy.
It's your job to work with either the IT department or the security team to promote cybersecurity awareness and accountability.
A successful cloud migration isn't something that happens overnight. Transitioning to a cloud-based ERP solution is an enormous change, and you'll need to prepare your people. Sparkrock can help with that — we'll provide you with the necessary guidance to successfully plan and deploy our solution.
Purpose-built for your organization's HRP needs and powered by Microsoft Dynamics 365 Business Central, Sparkrock 365 is an all-in-one platform that combines project and grant accounting, budget management, inventory management, payroll administration, scheduling, and more.
Once you've laid the necessary groundwork, it'll give you everything you need for your mission to thrive. Contact us to get started.