In the past, customers often blamed their software for project failures and often they were right. Now that the software industry has matured, products tend to be stable and increasingly well designed. So today, the blame for project failure typically falls on a breakdown in the customer's selection and implementation processes, not the software.

That's why I've been spending a lot of my time recently educating buyers on how to run an effective software selection process. I've written a white paper on the subject and on November 14th I'll be hosting a webinar for Sage Software on the topic. I invite you to either download the paper or register for the webinar. To summarize, however, here is an outline of my ten-step "best practices" process for selecting construction software.

1. Assemble the right team. Start by identifying an executive sponsor who will ensure the project gets the right funding and attention. Next, get a project manager who will oversee all details of the project. Finally, identify end-users that will enthusiastically contribute their requirements and ideas for improving processes. Be sure the team represents each of those departments that will use the software.
   
   
2. Establish clear goals for the project. Next, outline the goals of the project to justify the project expense and serve as a guideline when difficult decisions arise. All choices during the project should be weighed according to how well they help achieve these goals. Examples of project goals include: develop more accurate estimates, improve field/office coordination; or, speed up change order approvals or submittals.
   
   
3. Build a detailed project schedule. The next step is to create a project schedule that outlines all the major activities and their sub-tasks. Just like a construction project, consider each activity's dependencies and resource requirements. Assign an owner to each activity and even to each task. The schedule can be as simple as an Excel spreadsheet or you can use project management software.
   
   
4. Create a budget for the project. An otherwise successful software project could be considered a failure if it comes in over budget, so it's critical to have a detailed budget. Don't forget to budget for costs outside of the software. Some of the more commonly overlooked costs relate to: new computer hardware; platform software (e.g. databases); or, consultants to help install and customize the software.
   
   
5. Define your requirements. The next step is perhaps the most important in the entire process: defining the functional and technical requirements for the new system. This is not simply a list of features; it requires more deliberate, thoughtful analysis of "current" versus "optimal" business processes. The project team should map out existing business processes and then consider how each could be improved.
   
   
6. Draft a request for proposal and evaluation framework. Now it's time to draft an RFP and an evaluation framework to assess software products. The RFP will consist of questions covering all of the functional and technical requirements defined in step #5, as well as questions about the long-term viability of the software vendor. The evaluation framework is a spreadsheet to track each product's capabilities relative to requirements.
   
   
7. Develop a short list of products. Next it is time to build a "short list" of software products - three to five products that meet your high-level requirements. Start with a longer list of products assembled from web searches, recommendations and journals. Then filter it with some high-level criteria, such as: does the company serve your trade; do they serve your size of business; and, do they meet your technology requirements (e.g. database)?
   
   
8. Evaluate short list products. Now you need to evaluate your shortlist of products to choose a single "winner" and a "runner-up." You can contact vendors and engage in a thorough sales process. Send each vendor the RFP to complete. Also evaluate each product based on brochures, papers, trial versions and demonstrations. Use your evaluation framework to track how well each system handles your requirements. Before selecting one vendor, give each vendor an opportunity to respond to your concerns.
   
   
9. Check customer references. It is critical at this point that you do your "due diligence" by checking the winning vendor's customer references. Moreover, you need to "play detective" and dig into these references. Keep in mind that the references to which a vendor refers you are most likely their happiest customers. Require at least three references and prepare a detailed list of questions that require specific answers.
   
   
10. Negotiate the deal. The final step in your selection process is negotiating the right deal; don't stop being diligent. This step of the process will determine the price you pay for the software, the level of service you receive and the recourse you have if things go wrong. Consider what type of license you want (perpetual, term, subscription), negotiate the price and ensure that you are getting adequate upgrades and customer support.