Implementation Success: A Guide to Implementing a Valuations Platform

Project Governance 

Valuations software implementation is not an IT-led initiative – it’s a strategic business transformation. Strong governance ensures alignment, accountability, and agility. The first step of any implementation is to introduce a robust project governance structure – and to clearly identify the key business users that will make up the project team.  

Key Elements: 

• Steering Committee: Establish a cross-functional leadership body including key senior project stakeholders, as well as members of the relevant teams affected by the project. For example, the project could benefit from input from the Valuations, Finance, Portfolio Monitoring, IR, and IT functions. This group should meet regularly to align on priorities, resolve conflicts, and track progress. 

• RACI Matrix: Define clear roles and responsibilities for internal teams, external consultants, and the software vendor. Ensure everyone knows who is Responsible, Accountable, Consulted, and Informed. 

• Vendor or Build Team Relationship Management: Develop structured governance with the vendor or team in charge of building the platform – set expectations early, establish SLAs ‘Service Level Agreements’, and agree on escalation paths. 

• Project Management Structure: The project will retain strong steering and direction with an embedded project management structure – this is critical to ensuring all parties remain accountable and are following their roles defined in setting out responsibilities.  

• Valuations Specialists: Valuations specialists need to understand the key technical elements required for effective platform implementation. They must have a comprehensive understanding of relevant valuations methodologies, the role of external market data, and how this data flows from the manager’s monitoring platform into the valuation process.  

Planning and Scoping 

Many tech projects fail due to unrealistic goals or unclear scope. Effective planning should turn ambition into actionable steps. 

Key Elements: 

• Phased Project and Proof of Concept: Begin with a controlled pilot, such as a subset of portfolio companies or one strategy (e.g. private equity). A phased rollout enables the incorporation of lessons learned to improve broader implementation. Additionally, a phased approach allows the client-side valuation teams to familiarize themselves with the platform’s valuation mechanics. This process facilitates thorough review of the initial set of assets, thereby guiding the evaluation of subsequent assets.  

• Data Discovery: A successful valuations implementation will begin by auditing the current valuation platform and the relevant data that feeds the platform. Where is the data? In what format? Is it standardized? Identifying gaps and inconsistencies early prevents downstream delays. The standardization of a chart of accounts is a data management step that is often overlooked but will lead to a much smoother implementation and a more robust downstream platform.  

An effective data management strategy should include defining the requirements for both static and historical data within the platform. It should also determine which data will be directly integrated into the platform and which data can be stored in a centralized data warehouse, eliminating the need for it to be held within the platform. 

• Integration Mapping: Valuation tools seldom function independently. It is essential to determine how the system will interface with fund accounting software (eFront, Aladdin), data warehouses (Azure, Snowflake), Excel files, and reporting tools. Furthermore, valuation tools often serve as portfolio monitoring instruments; however, if these functions are segregated, ensuring the seamless flow of portfolio-level data from the monitoring tools to the valuation tools is crucial.  

• Capacity & Resourcing: Allocate internal resources with deep knowledge of valuation models and reporting needs. Overestimate the time commitment required for workshops, testing, and change management. 

Defining Success 

Success should be defined up front – not retrospectively. Clear KPIs and qualitative measures establish the project’s framework and provide assurance to stakeholders. 

Key Elements: 

• Functional Metrics: Determine whether the platform can handle the full range of methodologies used by the firm – discounted cash flow (DCF), trading and transaction multiples, and mark-to-market calculations. Assess whether it supports automation of quarterly valuation packs, audit-ready documentation, and investor reporting. Evaluate efficiency gains, such as the reduction in time spent on manual calculations, data compilation, and formatting. Consider improvements in data integrity, reduction in errors, and ease of responding to auditor and regulator requests. 

• Strategic Outcomes: Success should also be measured at the strategic level. Has the platform increased the confidence of LPs and other stakeholders in the firm’s valuation practices? Are investment committees better informed with real-time insights? Is the firm more prepared for regulatory scrutiny? Does the new solution allow for enhanced risk profiling across the portfolio? Can valuation scenarios be run dynamically to support deal or refinancing decisions? 

• Adoption and Change Management: Adoption is a critical but often overlooked component of success. Develop a change management plan that includes user training, stakeholder engagement, and incentive alignment. Ensure UAT processes simulate real-world valuation cycles with comprehensive test cases – including edge case scenarios such as complex co-invest structures, NAV facilities, and delayed inputs. Evaluate adoption not just by usage metrics, but by depth of use: Are deal teams and finance relying on the platform as the single source of truth, or reverting to legacy tools like Excel? 

Common Pitfalls 

It is equally crucial to understand what should be avoided as it is to plan actionable steps. There are several common factors that contribute to unsuccessful implementations. 

Key Pitfalls: 

• Underestimation of the Data Migration Requirements: The quality of existing data will derail the most well laid plans. It is essential to have a firm understanding of the existing state of your data. Take the time to do an assessment and create a mitigation plan if necessary before starting an implementation.  

• Technical Limitations: organizations may fail to understand how their existing complex and nuanced valuation models align with platform capabilities. This misalignment can result in a solution that potentially could leave many models unsupported. It is important to take the time pre-implementation to conduct a gap analysis through a pilot test period before attempting a full-scale deployment. The gap analysis will help identify key themes, prioritize gaps for the vendor’s product development roadmap and determine if there is a successful workaround in the meantime.  

• Change Management Challenges: resistance from staff who are used to a legacy system or process can hinder the adoption of new technology. Furthermore, users may not fully understand how to utilize the new valuation technology, leading to inconsistent application. To drive a successful transformation, it is important to invest in a strong change management strategy that includes the benefits of a new platform and comprehensive process documentation and training.  

• Inadequate Process Documentation: organization often overlook the importance of properly documenting the transition from current state to future state operating processes incorporating the new technology platform. Documentation would include the rationale behind certain design decisions and detailed processes and procedures. Ensuring that the documentation is clear, comprehensive and accessible to all stakeholders will avoid risk associated with knowledge transfer and provide valuable resources for training and ongoing process improvements.  

• Excel Creep: Users may continue working outside the system due to perceived inefficiencies or lack of familiarity.  The more team members attempt to work around the platform, the less confidence they have in it’s functionality. Team members should understand the benefits of the platform from the get go. Adoption must be driven through training, support, and system usability. 

How We Can Help 

Where Alpha Alternatives fits within your implementation is both as an extension of your core project team, as well as an extension of the project team on the valuation or portfolio monitoring vendor side. 

On the vendor side, Alpha Alternatives acts as the bridge for understanding your operations and bringing our industry expertise to customizing the tool to your needs. On the client side, our consultants understand that employees within your firm have full-time jobs, and our goal is to provide the human capital necessary to support your implementation. In this implementation support role, Alpha Alternatives will typically provide the following roles through engagement: 

• Implementation project management and governance oversight 

• Business analysis and solution design 

• Data discovery, transformation, and reconciliation 

• UAT planning, coordination, and facilitation 

• Training and change management support 

• Go-live stabilization and post-implementation tuning 

Alpha Alternatives ensures your platform isn’t just implemented; it is embedded as a lasting driver of efficiency, confidence, and strategic insight. 

For more information, please contact Nico Vit Nico.Vit@alphafmc.com

Read part-1 of this Valuations series, Valuations in Focus

Read part-2 of this Valuations series, System Selection for Valuation Technology Platforms