Imagine you are on a board, considering a systems decision. You have two options, the “safe but more expensive” decision with a large and reputable software provider; or the “basic and affordable” software option, with a smaller software vendor. What do you choose? Do you go with “safe” or “fiscally responsible”? Many boards have a default position on which is the right answer.

In my experience though, it is not so easy. There are many questions to ask and risks to consider before knowing which of these options is best for the organisation. I have helped guide clients to the right option for them. Sometimes it is “affordable” and sometimes it is “ready to grow”. Both are the right answer, for different organisations!

What questions should boards ask before signing off on a systems investment? There are many important issues that should be clear in the context of this decision. Two of the most important are:

  • **Is the business case obvious?** Particularly if growth is assumed. A big systems investment usually has some critical assumptions about growth or efficiency. How sound and realistic are those assumptions? The systems that deliver least value are often those based around inappropriate business assumptions, either under- or over-selling the opportunity.
  • **Is business capacity and capability aligned with this investment?** When organisations get it wrong, it can be unrealistic expectations of internal capability. Some organisations buy a Ferrari race car, but are not willing to pay for a trained driver. Others expect an organisation with limited capability to maximise value out of a simple technology, without anyone being tasked with having the skills and drive to make it happen. A Ferrari driver and a make-it-work person are very different skills and capabilities. What do you have? Or want to pay for?

Getting this wrong can leave your organisation with expensive and underutilised software; or leave the team frustrated and unable to deliver business growth outcomes.

I’ve done this work from both sides: as the consultant helping a team prepare their board paper, and as the director sitting on the other side of the table asking the questions. Both seats teach you something the other doesn’t. Which option have you chosen, “safe” or “affordable,” and did it work out for you?