Building the Lease Accounting Project Team
One of the first steps on your project will be to identify who should be on your lease accounting project team. You will also need to decide who should lead the project and who should be the executive sponsor. At most large organizations, real estate is managed by a centralized group at headquarters along with office managers at various facilities. Equipment leases are trickier as these assets are owned by many different stakeholders across the business.
The Role of the Executive Sponsor
The participation of a highly-engaged executive sponsor is one of the key factors that determines whether a big project will fail or succeed. As a result, experienced project managers are always on the hunt for a good executive sponsor. However, demand for these heavyweights at most companies often exceeds supply as there are many more critical projects than there are sponsors. Busy executives can only afford to commit their time to a handful of projects. A C-Level executive who is sponsoring 10 projects on top of their day job will likely be ineffective.
Hiring a Great Project Manager
One of the most important factors in meeting the implementation deadlines for the new standard will be your ability to assemble a strong lease accounting project team. While stakeholders from Treasury and Tax to Finance and Fleet will participate in this massive initiative, there is one key individual that everyone will be depending upon to make sure it all gets done – the lease accounting project manager. At the end of the day, this is the individual that everyone will be relying on to pull off what some are calling the biggest accounting change in history.