Most financial institutions are kicking off their budgeting cycles. If your organization struggles with cumbersome processes, manual procedures resulting in inefficiencies, outdated tools, or the inability to plan at the right levels to create the needed precision, accountability, and value, now is the time to start thinking about addressing those issues. While it may seem early to begin evaluating a new tool for your 2026 budget cycle, don’t underestimate the time required for research, decision-making, and implementation of a new budgeting tool. To ensure a successful rollout, it’s essential to start the evaluation process well in advance.
When transitioning to a new budgeting and planning tool, work backwards from your targeted “Go-live” date. Consider the time needed for system evaluation and selection, implementation, and training and be realistic about potential challenges that could extend these phases.
- The system selection and due diligence phase may take anywhere from 1-4 months. This period involves researching potential vendors, attending demonstrations, conducting reference checks, reviewing due diligence documents, obtaining approvals, and completing legal review and contract signing. Additional time may be needed for formal RFP processes or structured procurement procedures.
- The selection process should involve careful evaluation of potential vendors and should involve key stakeholders in the decision-making process to ensure the chosen solution meets the needs of all departments.
- The implementation and training process typically takes 3-6 months. During this phase, you’ll set up users, security, and system access; identify, capture, and import necessary data; establish institutional hierarchies; configure drivers and targets; test inputs and results; train end-users; and allow time for contributor inputs and final approvals. Factors that may extend this phase include difficulty in sourcing quality data, complex organizational hierarchies, employee-level personnel planning, and decentralized budgeting approaches. Allow time for thorough testing and training to ensure smooth adoption across the organization.
By starting the evaluation process early and allowing adequate time for each phase, you can avoid the pitfalls of a rushed implementation. This approach not only reduces stress on your team but also increases the likelihood of a successful rollout and adoption of the new system.
Ultimately, the goal is to implement a solution that enhances your organization’s budgeting and planning capabilities. By giving proper attention to both the capabilities of the system and the timing of its implementation, you can set your institution up for improved financial management and decision-making in the years to come.
Our teams have guided financial institutions through evaluation, due diligence, and implementation processes anywhere from 4-10+ months, so it’s best to start as soon as possible. Empyrean has compiled a complimentary workbook to help your organization navigate the step-by-step process of evaluating a new budgeting solution – download your copy today.
Over 100 banks and credit unions have chosen Empyrean Budgeting & Planning as their software solution for their 2025 budgeting cycle. Ready to learn more? Contact us now.
Authors
Roxanna Bradford, General Manager, Community Markets
Bryan Ridgway, Director, Performance Management Solutions