Degrees of Success: Improving Productivity and Performance through Process Automation

Degrees of Success: Improving Productivity and Performance through Process Automation

Few businesses use just one solution to get all their work done.  In most cases, the business must at least communicate, produce information and account for financial activities – and each of these functions has a software product or service associated with delivering the required capability.  While every business uses technology at some level, some businesses have more success than others in developing streamlined and efficient processes guiding the various tasks and activities performed throughout the day.  Sometimes the problem stems from a lack of understanding of the importance of process automation, and sometimes it’s the software.

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The success (or lack thereof) in streamlining a business process is often enabled by the tools supporting it, yet the truth of software and systems is that not everything  is easily integrated and not all business workflows actually “flow” smoothly.  In many cases it is left to the human user to connect the processes and keep the work flowing, creating the opportunity for missed deadlines, duplicated or erroneous data, and a greater dependency on individual worker knowledge than is good for the business.

The better alternative may be the adoption of workflow and automation tools to assist with bridging and scheduling of repetitive tasks, building the knowledgebase of process and task flow supporting business sustainability efforts and easing the burdens of training new employees.  Process automation helps to improve productivity, it’s just that simple.

If the time is taken to really consider the variety and numbers of repetitive tasks employees perform throughout the day, the cost in time, lost productivity and data errors or omissions would likely add up to far more than initially expected.  People tend to adapt to using the tools they are provided, and will find ways to get things done (whether it’s the most effective way or not).   The end does not always justify the means, and many businesses ultimately find that it is here – where individual worker initiative and unguided action are most prevalent – that the operation fails to accomplish stated goals.

In order to create a sustainable operation with consistently high levels of production and performance, the business must establish a complete framework for process automation and support.  Where existing application and software functionality is not able to meet the requirement, the business should implement specialized tools to bridge the gap and embed the process knowledge in the system.

Scheduled reporting, customer and product data synchronization, import/export routines, data maintenance routines – these are among the tasks and processes which represent the regularly-performed work that may be sucking the user productivity and performance out of the business.  It’s a matter of degrees of success, and productivity improvements introduced through comprehensive process and task automation can make the difference between a little success and a lot.

Make Sense?

J

Happy Holidays from CooperMann

Ninjabread cookies in the kitchen, an appearance by the Christmas Elk, and Minty Fresh (fresh cat, not canned) looking for Frangos all clearly indicate that the holiday season is here.  2013 has been an eventful year – some would say it was “fraught with peril” while others see opportunity in change. It’s all a matter of perspective – pursuing goals and taking action rather than resting on ones’ laurels and trying to wait it out.  This cloud stuff isn’t going away.

With technology and social computing adoption increasing at almost alarming rates, I can’t wait to see how 2014 goes!  This certainly isn’t a time for the tech-timid, as it appears as though the nerds and geeks do rule the world (aren’t we all a little nerdly, really?).

I hope you and yours have a wonderful season.

jmbunnyfeetCheers

J

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Read the Best of CooperMann.com from 2013

Accounting, Technology and Small Business – The Best of 2013 from CooperMann

Accounting, Technology and Small Business – The Best of 2013 from CooperMann

cooper-mann-top-20It has been an eventful year, hasn’t it?  With the NSA lurking about collecting data, innovative new approaches to information and identity theft emerging almost daily, and complete turmoil in the IT services industry challenging trusted sales and distribution models, most of us have simply become numb to the noise.  Information technology is evolving at an increasingly rapid pace and the way people and businesses interact with and use technology is being forced to change along with it.  It’s starting to become almost, weirdly, natural.

Much of this change can be attributed to “The Cloud”, which is not a thing or a place.  Cloud has become the term which applies to just about anything having anything to do with the Internet.  For technology “purists”, cloud means something fairly specific, but for normal people (no offense to the nerds and geeks, but you know what I mean), cloud applies to pretty much anything accessible via the Internet.  Photos back up to “the cloud”; music gets stored in “the cloud”, websites are hosted in “the cloud”; businesses run their applications in “the cloud”, and you can do darned near anything you need (or want) to with a phone.  The cloud could be some guy’s server in his basement, or it could be a sophisticated network of systems housed in secure facilities around the globe.  They both qualify, sort of.  The point is that mobility, Internet services, subscription access to technology, and social computing are changing how people view technology – resulting with changes not simply in how IT is purchased, but in how IT is used and applied to daily life.

There are, however, some things that do not change even if the working environment does.  The accounting profession, for example, is undergoing a great deal of change, and much of it fueled by the advancements in technology and social computing.  But accounting fundamentals – the “truth of debits and credits” and the good old accounting equation – remain.  The basics of running a business are also unchanged, even as methods of doing business evolve and globalization of markets continues.  Business fundamentals – fiscal responsibility, cash and growth management, and focus on value and sustainability – are as necessary now as every before.

With all this change and IT “advancement”, there have certainly been impacts to how and where we work.  But the more things change, the more they remain the same.  Good business generates goodwill and more business – that doesn’t change – and bad news still tends to spread faster than good news (much faster, given social platforms that are designed to spread the word far and wide).  And when it comes down to the fundamentals – the basic and essential foundations supporting building, operating, and accounting for business – we generally find that they remain constant even as the environment in which they exist experiences change.

jmbunnyfeetMake Sense?

J

Here are the top 20 ranked posts for 2013 from CooperMann.com

  1. The 2 Most Popular Models for Working with QuickBooks Desktop Editions and the Cloud
  2. Accounting Professionals, You’re right – your clients don’t care about the numbers.
  3. Remote access to client bookkeeping comes in many forms because clients come in many forms
  4. What Small Businesses Need To Know about QuickBooks and the Cloud
  5. Intuit Introduces Changes to Authorized Commercial Host for QuickBooks Program, Introduces QuickBooks Enterprise Rental Licensing
  6. Managed Applications, Cloudpaging, and a New Flavor of Hosted QuickBooks
  7. The Language of Accounting: Disconnect between Accountants and Bookkeepers
  8. Why Accountants and Bookkeepers Use the Cloud
  9. Small Business Owner to Accountant: Make Accounting Valuable to ME
  10. Changing How We See Software: QuickBooks 2013 interface frustrates power users
  11. Bookkeeping and Benchmarks – Getting the Numbers Right
  12. In Bookkeeping, Accounting, and Information Technology: The Value of Outsourcing
  13. Hosting All My Applications in the Cloud
  14. 4 Rules of Thumb for Business Success
  15. Intuit Hosting Program for QuickBooks Website Goes Live
  16. Re-defining the role of the accountant, or going back to the good old days?
  17. Cloud Computing for Small Business: It’s All About 3 Apps
  18. The Collaborative Online Model for Small Business Accounting Professionals
  19. QuickBooks Hosting: New Program Tier Announced for QuickBooks Hosting Providers
  20. 4 Rules for Building Service Customer Loyalty
Posts by category – with Accounting Professionals, QuickBooks Hosting, QuickBooks Software, and Small Business being the top categories with ranking articles.
ACCOUNTING PROFESSIONALS
Small Business Owner to Accountant: Make Accounting Valuable to ME
Accounting Professionals, You’re right – your clients don’t care about the numbers.
The Language of Accounting: Disconnect between Accountants and Bookkeepers
Why Accountants and Bookkeepers Use the Cloud
Bookkeeping and Benchmarks – Getting the Numbers Right
In Bookkeeping, Accounting, and Information Technology: The Value of Outsourcing
Re-defining the role of the accountant, or going back to the good old days?
The Collaborative Online Model for Small Business Accounting Professionals
Remote access to client bookkeeping comes in many forms because clients come in many forms
QUICKBOOKS AND BUSINESS APPLICATION HOSTING
The 2 Most Popular Models for Working with QuickBooks Desktop Editions and the Cloud
What Small Businesses Need To Know about QuickBooks and the Cloud
Intuit Introduces Changes to Authorized Commercial Host for QuickBooks Program, Introduces QuickBooks Enterprise Rental Licensing
Hosting All My Applications in the Cloud
Intuit Hosting Program for QuickBooks Website Goes Live
Cloud Computing for Small Business: It’s All About 3 Apps
QuickBooks Hosting: New Program Tier Announced for QuickBooks Hosting Providers
Managed Applications, Cloudpaging, and a New Flavor of Hosted QuickBooks
QUICKBOOKS SOFTWARE
Changing How We See Software: QuickBooks 2013 interface frustrates power users
SMALL BUSINESS
4 Rules of Thumb for Business Success
4 Rules for Building Service Customer Loyalty

4 Rules of Thumb for Fiscally Fit Business

4 Rules of Thumb for Fiscally Fit Business

4-rules-of-thumbMost folks who start a new business go in to it with a rather naïve belief that a good idea, product, service and/or group of people can be successful just because their idea, product, service or people are good.  Unfortunately, that isn’t’t the reality of starting up and running a business.  Regardless of how great and innovative the idea is, the business only works if it is sustainable and profitable.  Otherwise, it was just a great idea.  For many entrepreneurs, developing an understanding of the financial underpinnings of running a company isn’t the most exciting of ideas.  The compulsion is to outsource the responsibility to someone else like an accountant or financial advisor. While I completely and utterly agree that every business owner should work closely with their accounting professional and financial advisor, I also know that those very same business owners will get more value from their advisors if they have a common language to speak (business finance) and are working toward a common goal.  The goal is fiscal fitness – the creation of a sustainable and profitable business. Just as physical fitness supports a healthy body, fiscal fitness supports a healthy business.

The successful business operating in this economy adheres closely to 4 main beliefs, rules of thumb perhaps, relating to fiscal management and fitness and which are generally communicated in detail using the language of business finance.

Rule 1. Plan before you start.  Then plan some more.  Starting a business isn’t like going to college; you’re supposed to know what you’re going to do BEFORE you start up rather than paying to explore the options.  It is also very important to recognize that the plan may require some adjustments as you go along (“No plan survives contact with the enemy”), taking care to not equate focus with intractability.  This plan should also include the “exit strategy”, which is really a plan for what the owner wants to ultimately get out of the effort.  It could be a plan to sell out for gobs of money, to leave a legacy for the children, or maybe just to have an awesome quality of life and do what they love at the same time.  Knowing what it will take to get in, get it done, and get out the way you want is all part of the plan.

Rule 2. Keep a close eye on the numbers.  No, not all of them, but the really important ones.  Some of these numbers have to do with the relationships between price, volume and cost.  This is the stuff a business owner needs to know like the back of their hand – hairs and all.  Not every business will focus on the same key numbers (mostly, but there are certainly variations), but every business owner should know what to look for.  And they should be looking very frequently so things don’t get out of whack before corrections can be made.

Rule 3. Manage the cash, manage the growth, and know how one impacts the other. Cash flow and growth are priorities number 1 and 1 in business but they aren’t the same thing.  Consider that reducing prices (and profits) to get more sales may work as long as the volume of sales supports the effort and generates the cash.  Without the extra sales revenue to rely on, reducing profits could result in devastation (maybe sticking with the prices the way they are and not pushing for fast growth is a better idea).

Rule 4 If you must borrow, be informed and do it smartly.  There are a lot of different options for borrowing money for the business, just as there are a lot of different reasons to do it.  There is a great deal of research available which describes the benefits of borrowers being educated in basic financial literacy, with better financial decision-making being among those benefits.  Looking for financing is kind of like choosing between the apple and the candy bar: one may promote the fitness you’re looking for while the other does not (but it looks sweet!).  It’s nice to have the foundation to support knowing which one you should choose.

Building and maintaining a fit business requires an understanding of how the business works – how and why it makes and spends money, what makes it profitable and what it takes to create and support growth.  While outside advisors may be available to help, the best performance is achieved when the business owner masters the essential skills required to run and grow a fiscally fit and sustainable business.

Joanie Mann Bunny Feet

Make Sense?

J

Measure, Manage and Succeed.  It’s all about knowing how to speak the language of finance

4 Rules for Building Service Customer Loyalty

4 Rules for Building Service Customer Loyalty

Every business owner knows that it’s important to retain the business of good customers, because those good customers will turn into referrals and more customers.  What many business owner’s don’t know is that building customer loyalty – the repeat and referral business that keeps the doors open – takes more than producing a good product or having nice personnel.  Building customer loyalty is a continuous process which involves just about every area of the business. Particularly with service-based businesses where there may be a number of variables involved with the delivery, proper information collection, management, and communication becomes the essential foundation for delivering on the promise of great service, which helps to develop loyal customers.

4-rules-of-thumbIn a previous article titled “4 Rules of Thumb for Business Success”, I stressed the importance of creating the best business impression possible.  Here are a few additional tidbits for service businesses – things the company can do to make sure that the work is done completely and correctly the first time, which is what leads to happy and loyal customers.

Rule 1. Remember that everyone in the company is essentially in a sales and service position.  The customer should be able to get useful help or direction from any employee.  Not that everyone in the company can do all the jobs in the business, but everyone should be willing and able to find the resources necessary to get the customer’s question answered.  And it’s a good habit to try to set any necessary service appointments on the first call – it lets the customer know you’re ready to get the job done and saves them time.  Too many sales teams simply answer inquiries from callers and don’t ask for the business.  If you don’t ask, they can’t say yes.

Rule 2. Structure the order process to make sure that all information is captured, stored, and made available to service techs.  Customer requests should be specifically noted, along with any special details or requests.  There’s nothing more annoying than telling the company to watch out for something when they’re at your place, and then finding out that the tech didn’t get the memo.  Also make sure that any specific work items or parts are listed on the order, making it easier for the tech to record what they do and use.  All of this information should be available not just to techs, but to customer service and sales people, too.  After all, mismanagement of order information is usually not the customer’s fault, yet the customer is the one who ends up not getting what they asked for.  Avoiding this situation is critical to developing loyal, repeat customers.  It also makes getting the customer sign-off more likely, and this signature should be captured at the work site when the job is completed (allows the billing department to get the invoice out much faster, which allows the company to get paid faster).

Rule 3. During the job, make sure customers and co-workers are informed as to the status of the work.  The worst thing is to partially complete a job and leave the customer hanging – a situation that status tracking of service orders helps prevent.  When the work is completed, make sure to let the customer know, and also provide observations and recommendations.  Whether it’s a single job or a regular maintenance contract, always document what was done so that the customer knows exactly what work was performed.  Use a checklist or cheat sheet to make sure things are done completely and consistently every time, including cleaning up and making notes about the job.  Documenting things that technicians notice while at the customer location may provide the opportunity to offer more or other services to the customer, or might at least inform the customer about an issue they should be aware of.  By paying attention while on-site and looking for upgrades or value-adds that might benefit the customer, service technicians can often position themselves as top sales people, too.

Finally, Rule 4, always thank the customer for their business and let them know you genuinely appreciate it.  Smile, hand them a business card, and maybe even ask for a referral.  If you’ve done your job well and kept the customer informed along the way, it’s likely that this customer will bring you more business both directly and through referrals and recommendations.  That’s customer loyalty, and you can’t buy it anywhere – you have to build it.

Make sense?

J

coopermannconsulting-paperli

The Line in the Sand: Your RPO (Recovery Point Objective)

The Line in the Sand: Your RPO (Recovery Point Objective)

IMG_0108Businesses and individuals are increasingly more dependent upon the technology supporting their various activities, and the volume and velocity of information moving through these systems is increasing at astonishing rates.  With the growing reliance on information technology and electronic business data, you’d think that more businesses were paying close attention to protecting these assets. I recognize that there is a broad understanding of responsibilities as they pertain to system security, and businesses of all sizes and types are increasing their awareness of the variety of threats facing their systems and are taking steps to address them.  Yet there remains an aspect of business data protection that too few businesses are really zeroing in on, and that is the time and complexity of recovering or restoring business data in the event of an outage or loss – and the absolute line drawn in the sand which says that “here” is the tolerable loss we can experience: no more and no less.

This line in the sand is referred to as the RPO, or Recovery Point Objective. A recovery point objective is part of the business continuity plan (or should be!), and describes the maximum tolerable period of time for which data might be lost from a major IT service incident.  The necessity to establish this time frame – the RPO – exists whether the business is small or large.  In fact, small businesses have data protection needs quite similar to their enterprise counterparts.  In an article in SmallBusinessComputing.com, Kieran Maloney of Quantum Corporation is quoted as saying that “from a data protection standpoint, smaller businesses face challenges that are similar to those of larger enterprises; the amount, and the value, of their data is growing significantly while their budgets are not”.

What doesn’t seem to make sense is that businesses continue to view data backup as a necessary evil rather than a strategic element, and spending considerations for creating and meeting a realistic RPO remain low.  An article in TheStreet.com on the subject quotes Terry Cunningham, president and manager of EVault, saying “When largely preventable data loss conservatively costs businesses hundreds of millions of dollars annually, it is time to rethink your priorities”.  The author also writes that “while 95 percent of US IT decision makers said they have some type of disaster recovery plan in place, only 44 percent have remote, cloud-based recovery capabilities… More than twenty percent of IT organizations that manage between 2-7 TB of data suffered a data loss in the past year – in fact, more than half of this group suffered 2-3 data losses – each with an estimated average cost of 2-5 percent of total company revenues”.

Part of the continuity plan and a consideration in developing an approach which will meet the RPO timeframe should be the implementation of remote cloud based service, yet this has remained a low priority for many business owners.  Reliance upon more traditional data protection approaches, including tape backups and on-premises HDD solutions provides IT managers with a false sense of security and often cannot even reasonably address recovery from data loss due to hardware outages, much less for potentially catastrophic failures including loss of the location.

When considering the RPO – the minimum acceptable point for data recovery (or maximum tolerable point for loss) – businesses must look at their data management and backup strategies in order to address recovery approaches for various types of outages.  There are benefits and drawbacks associated with the different methods of backing up data, and the cost/benefit of employing any solution must factor in to the requirement to meet the stated RPO.  Daily backups may be the standard procedure, but is a potential loss of 24 hours of data acceptable to the business?  On the other hand, what is the potential cost of re-creating the data, if it can even be recreated?  Consider also that the timeframe for data recovery is not the point at which the last backup was completed; it is the point when the last backup was started.  This could result in a loss window greater than the established 24-hour boundary.

Many businesses would suggest that their tolerance for lost data – due to the cost of lost productivity and order activities – is far less than 24 hours, yet solutions employed to reduce the potential data losses often do not fully address the issue in any comprehensive manner.   IT personnel working with separate products to handle incremental data backups, machine recovery (bare metal) and snapshots of disk arrays often have a tough time trying to piece together the various pieces of the puzzle and often simply hope for the best in terms of outcome.

The prudent move is to thoroughly consider the business disaster recovery and continuity plan, and establish the boundaries for tolerable loss.  No business wants to expect to lose valuable data assets, but expecting technology to perform flawlessly is unrealistic, not to mention the unexpected impacts from acts of nature or other forces majeure.  Architecting systems to withstand service outages and having a comprehensive plan for recovering from system outages in a timeframe survivable by the business is the essential element to making a continuity plan worthwhile.  Draw the line in the sand, and then develop the system protection and recovery plan that will help make sure you never have to step over it.

Make Sense?

J

Here are a few data loss statistics for your reading pleasure… Enjoy  🙂

(stats drawn from summary on BostonComputing.net.  They may be a bit dated, but the numbers have only increased since then.) http://www.bostoncomputing.net/consultation/databackup/statistics/

The following statistics were gathered from various sources:

  • 6% of all PCs will suffer an episode of data loss in any given year. Given the number of PCs used in US businesses in 1998, that translates to approximately 4.6 million data loss episodes. At a conservative estimate, data loss cost US businesses $11.8 billion in 1998. (The Cost Of Lost Data, David M. Smith)
  • 30% of all businesses that have a major fire go out of business within a year. 70% fail within five years. (Home Office Computing Magazine)
  • 31% of PC users have lost all of their files due to events beyond their control.
  • 34% of companies fail to test their tape backups, and of those that do, 77% have found tape back-up failures.
  • 60% of companies that lose their data will shut down within 6 months of the disaster.
  • 93% of companies that lost their data center for 10 days or more due to a disaster filed for bankruptcy within one year of the disaster. 50% of businesses that found themselves without data management for this same time period filed for bankruptcy immediately. (National Archives & Records Administration in Washington)
  • American business lost more than $7.6 billion as a result of viruses during first six months of 1999. (Research by Computer Economics)
  • Companies that aren’t able to resume operations within ten days (of a disaster hit) are not likely to survive. (Strategic Research Institute)
  • Every week 140,000 hard drives crash in the United States. (Mozy Online Backup)
  • Simple drive recovery can cost upwards of $7,500 and success is not guaranteed