Spring 2012 issue of Horizons

Features

How Efficient and Effective Administrative Processes Add To Your Bottom Line

By Maureen Runge, CPA

E nsuring company processes are functioning efficiently and effectively will not only aid in compliance, but just as importantly, it will reduce costs to your organization and boost the bottom line. Often, management may find that processes that were productive in the past are now unsuccessful because the processes have not adapted to changes in the organization. The question remains…what should be done when a good process has gone awry? Breakdowns in a process can occur for a multitude of reasons. They can be a result of centralization of back-office functions, changes in employee job responsibilities, an acquisition event, or new system implementation, to name a few.

When a process becomes inefficient or ineffective due to changes, negative consequences can occur such as resource constraint, inaccuracy, unnecessary fines, and a decline in reputation. For example, an inefficient accounts payable process that causes payments to be paid late may lead to costly late fees, the risk of paying an invoice twice, employees losing benefits because of late payment, and damage to the company’s reputation. To identify the root cause of the issues and mitigate the negative consequences of an inefficient process, management must take a step back and review the entire process from start to finish. To accomplish this, management needs a team that can objectively execute the process, follow a methodology to identify inefficiencies and improve the effectiveness of the process.

Raise Your Expectations

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