Tag: knowledge management

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Reinventing your Business – What Happens When Systems Fail?

Reinventing your Business – What Happens When Systems Fail?

There is a lot of discussion today about how our children are growing up in a world where high technology is simply part of life and lifestyle.  I even read an article about how people are evolving because of the availability of information; evolving to the point where we no longer store and retrieve information, but store information on how to get information.  The article cited an example of someone who couldn’t recall the name of an actress in a movie they had seen, so the immediate response was to search for the answer on Google.  In the past, people relied upon memory, and found various ways to mentally associate and store information so it was able to be recalled.  Now, there’s an app for that.

Are we losing our ability to effectively store and recall information?  Are we forgetting how to do things before we had all this technology to help us?  It makes you wonder sometimes, how technology-dependent we are. We look at the ruins of past civilizations and view seemingly impossible structures, (impossible given what we know about the technology available at the time) and wonder how they came to be.  The knowledge was there at some point, but is now lost.

Is your business at risk from a similar fate?  Maybe it sounds silly, but it makes sense to at least think about it, because there are a lot of companies out there today that are not paying attention to critical issues such as knowledge management and sustainability.  Finding ways to capture business knowledge and protect it is essential in every organization, whether small business or large enterprise.

Small businesses are often centered on an owner who started the operation, and who just knows how things are done.  The primary goal in this situation is to capture that knowledge and turn it into process.   Only through this approach may a business begin to reduce its reliance upon a single individual, and this is a critical step in creating both sustainability and continuity in the business. In larger enterprises, process and structure are essential to keep the various parts and participants moving in the same general direction.

Once those processes are established, generally using technology to support or facilitate them, is that the end of the task?  Many businesses seem to believe so, and move along with the impression that they have things well in hand.  And then a major system or technology failure occurs, and folks are left standing around, unable to get their jobs done.  In the worst cases, there isn’t anyone in the business who really understands how to pull things back together or there is no longer access to electronically stored information necessary to continue operations.  How would you handle things if your systems – your computers and software and systems – were no longer available to you?

While GPS and high-tech auto-pilot systems can bring tremendous efficiencies to the process of flying, they also can give a false sense of security that encourages complacency. If something goes wrong, the auto-pilot will adjust and the computer will tell you where to go, won’t it?

Here is where technology has the ability to distract pilots–and entrepreneurs–from asking themselves if they’re both focused on and capable of solving the right problems.

http://www.inc.com/chris-mittelstaedt/business-lessons-from-air-france-447-crash.html

Each and every business must consider how they would address a severe information technology outage, and should take steps to protect and preserve business knowledge so that there is some hope of recovery from such an event.  In an article on Inc.com (Survival Skills Every Entrepreneur Needs), writer Chris Mittelstaedt makes this observation, and suggests that business owners address how they might get things done “old school”, just in case all this nifty technology fails us unexpectedly.

Make sense?

J

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Accountants and Small Manufacturers

rollingballGetting in Front of the Ball

There’s a lot more to accountability in a manufacturing or inventory-based business than simply keeping track of money in and money out.  Particularly in an economy when nobody can afford to build or stock products too far ahead of demand, it is essential that these businesses have a means to not only track and manage purchasing, manufacturing, distribution and stocking activities, but to understand conditions or trends which impact the flow of materials and cash through the business.  Further, this understanding must come in a timely manner in order for the business owner to make decisions and take action when it matters most.  Unfortunately, many business owners find themselves “behind the ball”, constantly pushing to make forward strides, and often due to not having the information they need to make business decisions that matter now, today.

Why is it so critical for these businesses to have more and better information to help them make strategic decisions and answer daily operational questions?  In a word: connectedness.  The Internet has truly made the world smaller when it comes to participation with even the smallest of local businesses.  Globalization of markets has impacted manufacturers in significant ways, and these businesses (like so many others) must now be prepared to address the realities of global supply chains, outsourcing, and a remote or mobile workforce and market.  While many of the software solutions addressing the functional business requirements of manufacturing and inventory or warehouse management are “locally implemented” solutions, extending and integrating these solutions to address the new global and mobile paradigm may represent a significant expenditure in time and resources for the small enterprise.

Application hosting and web-based solutions have emerged to help businesses address the need to “modernize” legacy applications and enable greater levels of system management and access.  Introducing the applications into a centralized and remotely accessible environment allows the business to immediately deliver the necessary support for remote work and mobile access, and positions the system to facilitate collaboration within the business and with outside participants, such as outsourced bookkeepers, accounting and finance professionals.

These professionals can be instrumental in assisting their clients manage the change to new collaborative computing paradigms.  Where accounting was previously viewed as an after-the-fact process, accountability through detailed activity tracking and reporting is now a focus which begins at the front end of the business, and accounting professionals are finding far greater value in helping structure and manage this daily activity in order to deliver greater operational information and insight.  Rather than being the last people to know what is happening in the business, accounting professionals are recognizing that their ability to positively impact business performance requires getting “in front of the ball”, initiating process structure, data control and collection which ultimately results in better and more informed decision-making through better and more timely access to more meaningful information.

Businesses at all levels are realizing that new computing paradigms can ease the burdens of collecting and sharing information, yet most small companies need help in determining exactly how to approach this “enabling” of the business and systems.  While accountants are also experiencing dramatic change in how they do business, it makes sense for them to embrace the opportunity and recognize that enabling client systems will ultimately allow the accounting professional to work more closely and to deliver more tangible value to their client on an ongoing basis.  Online accounting approaches are no longer a fad but are the new reality supporting how many bookkeepers and accountants work with their business clients.  Extending access beyond accounting and bookkeeping systems, and incorporating support for operational and line-of-business solutions, is the next step which will bring the accountant closer to the client business, and position both to benefit from deeper collaboration and useful insight.

Make Sense?

J

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Knowledge, Sustainability, and Succession

Knowledge, Sustainability, and Succession

In a global economy, where competitive pressures are increasing every day for even the smallest of businesses, sustainability becomes as much a focus for the business as growth once was.  Developing strategies for retaining profit margins, improving cash flows, solidifying supply chains, and streamlining operational processes is essential when designing the business to handle the stresses of a depressed economy.  But knowledge management – investing the learning and experience of individuals into the DNA of the business – is also an essential element to sustainability and business continuity.  When the entire realm of understanding of how the business runs exists solely in the proprietor or founder, there is little foundation upon which to build an enterprise.  However, when this knowledge is turned into systems and processes which guide the operation, results are able to be reproduced consistently, and reliance upon key individuals is reduced significantly.  This aspect of succession planning is often overlooked, but is THE essential element in business continuity.

Accounting professionals are trusted advisors to their clients, and provide much more service than simply financial reporting.  The consultative approach, delving deeper into the business and looking beyond the surface-level numbers, is what business owners are looking for.  You can help your clients see beyond the numbers to find ways to improve efficiency and profitability in the business, and to help turn individual knowledge into business knowledge, crafting a plan to retain and build on that value.  That’s what sustainability is all about.

Make sense?

J