talk is heap! stop fixin to automate & get it done · –look for bang for the buck, low...
TRANSCRIPT
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Talk is Cheap! Stop Fixin’ to Automate & Get It Done
Pam Miller : : Senior Trainer : : IOFM
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Full Texan
Really Fell victim to editing…
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Putting this Presentation Together • I realized I have been doing some version of it for 20 years!!!
• Why me?
• Why this topic?
– Many AP departments are still
– Fixin’ to automate
– Need to complete an automation project
– Need to reassess an older project and update to the 21st century
– Need to automate the rest of the process
– Or some variation
• Let’s make this the last time – or nearly the last time – and get this job done!
• You can do it, really you can.
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Back in the Day • You no longer have to be an “early adopter”
• The world is AP’s oyster
– In terms of what types of automation products are available
– And especially how they are delivered
– And what they cost to implement and operate
• In terms of getting to yes,
however, we see the same
challenges that have
stymied us over the years
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Let’s Take a Brief Trip in the Wayback Machine
• Circa 1995 adding imaging & workflow to AP
• Look at the size of that monitor– 21” and they cost about $3,000 each
• And that scanner –
I referred to them
as “Detroit” steel
harkening back to ‘50’s
cars with the big tail fins
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Wayback Machine, continued • We were literally making it up as we went along • And it took 7 servers that all had to be rebooted in a
specific order EVERY morning • And a jukebox • Our programmers weren’t the only ones scratching their heads • But it worked! • And cost around $250,000 all in
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Returning to 2017 -- WHY??? • With all the techie advances, why are so many AP
departments’ processes still manual or mostly manual?
• Many say it is because it’s too expensive • And that AP is never high on the list to get funds
for automation projects • And anyway, the bills are getting paid
– A dirty little secret: in some organizations the fact that AP is slow to get bills paid is a feature not a bug
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Additional Commonplace excuses Reasons • Too complex & time consuming to implement
– Organization may have had – or read about – difficult or even failed automation projects
• Fear of and/or unwillingness to change
• And if suppliers are among those who need to change – “fuhgettaboutit!”
• Systems issues
– Integration with legacy systems
• IT constraints
– People, support, skills
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
But the Thing is, AP:
• Does more than “just pay the bills”
– Even though most of the rest of
the organization thinks this is
all we do
– And that it is a piece of cake
• AP has its hand on the pulse of the organization
• AP owns massive quantities of strategic data
• AP has the power to improve (or destroy) relationships with suppliers
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
The Thing is, continued • Cost containment & cash management are at the
top of the executive agenda
• That’s where AP lives
– AP has the power to add or subtract
the bottom line
• Cash flow
• Discounts
• Interest charges & late fees
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
The Thing is, continued • Pressure for compliance management &
continuous improvement is increasing – SOX
– Sales & use tax enforcement
– Unclaimed property enforcement
– 1099 reporting enforcement
– FATCA!
• All together now: doing more with less…
• Thinking about AP this way, who wouldn’t want to help AP do a better job?
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
The Reality is: • AP automation has measurable results
• ROI payback period may be quicker than you think
• AP automation deserves budget consideration
• AP automation may not sound “snazzy” but it delivers
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
It Can Be Done! • Not to get all political on you but,
• Should be the motto of all AP professionals (male or female) who are determined to automate their department
• Because, it takes knowledge, planning, and, absolutely, positively, persistence!
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Let’s Define a Game Plan • Assess where you are today & where you want to be
• Determine what technology is the best fit
– For all or part of your AP process
• Triage the solution providers
• Learn the ropes
– What is the process for project approval?
• Sell the solution to those who hold the purse strings
– Justify the investment
• Close the deal internally
• Define the project
• Do it!
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Assessing • 1 in 7 AP managers do not know what their current
costs are !!!
– Are you one of them?
– How much does it cost you right
now, today, to process an invoice?
– You need to understand your
current cost of doing business
• You need facts & figures (metrics)
– To determine the right project(s) for you
– To help you prioritize those projects
– To build your case (how much your project will save) 15
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Assessing, continued • So, if you are not keeping statistics, start!
– Validate your “gut feel”
– Executives may not understand what you do but they understand statistics
• If you are keeping statistics, assess them
– What are they telling you?
– Is it what you want/need to know?
• Count things that count
– Don’t count things just because they are easy to count…
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Useful Things to Count • Take a long hard look at your numbers
– How many invoices do you receive?
– What kind of invoices are they?
– Where do they come from?
– How do they arrive?
– How many payments go out?
– What kind of payments are they?
– What’s your turnaround time?
– Late fees paid vs. discounts taken
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Understand your Processes • Take a long, hard look at your processes
– Map them out • Why do you do some of the things you do? • Can you eliminate some steps or processes?
– Remove non-value-added activities & costs? – Are there leftovers from other processes? – Some processes seem to have a life of their own
• “Because that’s how we’ve always done it!” – “The 6 most expensive words in business are:
‘We’ve always done it that way.’” – Catherine DeVrye
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Understand your Processes, continued • Should some things be done elsewhere?
– Other areas of the organization influence your processes
• Enlist their help
• It’s possible that information you need to solve your problem is in areas outside of your control
• Collaborate
• Take ownership of functioning processes
• Don’t hold on to outmoded ones
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Armed and Indecisive • The first and possibly overwhelming decision – what
technology is right for my AP dept.?
– Too many choices!
• And which vendor is the right partner?
– There are many vendors offering the
same(?) or similar “solutions”
– And they keep buying one another
• I want a vendor who will be there
for the long term
• How do I know which one with be the “buyer”
and not the “buyee?”
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Surveying the Marketplace
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• Many technology choices out there directed towards AP – Many focus on the invoice side – incoming
• Decrease data entry • Increase efficiencies
– Don’t forget the payment side • Many of these technologies are mature or maturing • Beware the “cool” factor
– Proven technology – Low risk – Controlled impact
• Be careful not to become too attached to one solution – It could become your next problem
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Surveying, continued
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• How do you choose he right tool, the right mix, the right vendor, the right delivery system?
• You want a good fit
– To your processes –
• including current automation
– To your culture – dealing with change
– To your vendor population – dealing with change
• How much time & education will it require to bring them on board?
– To your budget
• Time, IT availability, and money (the main constraints)
• Here’s where the cloud really shines
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Keep in Mind
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• One “solution” rarely fits all
• You may probably will need to implement multiple
technologies/solutions
• Remember, you don’t have to solve
all the problems at once!
– Prioritize
– Look for “bang for the buck,” “low hanging fruit,” etc.
• Automating AP is rarely a straight line – lots of zigs and zags
– Which is why so many departments automate bits and pieces or never complete the project as originally contemplated
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Focus on Finding the Right Technology
• Imaging
• OCR
• Workflow
• EDI, e-invoicing/EIPP
• ERS (evaluated receipt settlement)
• Automated expense reporting
• ACH
• Purchasing cards
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Is it e-Invoicing (EDI or EIPP)? • e-invoicing is always the next big thing • How many paper invoices do you receive? • How do they get to you? • Data instead of paper– cultural issues • What is the technological expertise of your vendor population?
– These solutions require major changes on their part – Important aspect of choosing a vendor is how easy they
make it for your suppliers & how they go about “onboarding” vendors
• What type of IT resources are available to you? • What is your organization’s view on SaaS or hosted
solutions?
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
e-invoicing as the “Hot” or “Cool” Technology
• In any event, the key to success is that fifth bullet point that references your vendor population – Important to understand the help your vendor will offer
• But also who will pay for it? Technology is not free
• Don’t let costs, even small ones,
stand in the way of vendor participation
• Sort your vendors into best, good, and
not so good candidates – So you don’t waste time and effort on those who are not
ever going to participate
• Many organizations use a combination of technologies
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Is It Imaging, OCR, and/or Workflow?
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• How many paper invoices do you receive?
• How do they get to you?
• What’s the quality of the paper?
• Do you need header and line info or
just header?
• Do many people/departments touch your invoices?
• Are approvals a major headache?
• What is the technological expertise of your vendor population?
– These solutions require little to no change on their part
• What type of IT resources are available to you?
• What is your organization’s view on SaaS or hosted solutions?
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Is it ERS? • Do you have contracts for purchasing certain items? • Do you get lots of repetitive invoices? • Do you have good relationships with other departments at your company?
– Purchasing, receiving, internal audit…
• How reliable is your receiving? • How fast is your receiving? • What is your vendor population like? • Do you have good relationships with vendors’ AR
departments? 28
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Is it Automated Expense Reporting? • How many expense reports do you do a month?
• How many expense report filers do you have? – Where are they?
• Do you have a travel department or
preferred travel vendors?
• Do you have a card program in place?
• What level of support for policies & procedures does your executive group provide?
• What is your organization’s view on SaaS or hosted solutions?
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Is it ACH? • How often do you cut checks? • How many checks? • How many invoices on each check? • How much does it cost to produce a check?
–And to mail them all? • What is your vendor population like? • What is finance/treasury’s view on cash
management, particularly float? • Who manages the banking relationship?
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Is it a Purchasing Card Program?
• Are your invoices generally for inventory or expense type items?
• Do you handle lots of expense reports? • How often do you cut checks? • How many checks? • How many invoices on each check? • Are most of your invoices low $ or high $? • What is your vendor population like? • How do the executives view a card program? • How would a card program affect your culture? 31
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Let’s Talk the “Cloud” • Virtually all AP automation technologies are available via
the cloud
• There are many advantages
– Low up front costs
– Pay as you go
– Pay only for what you use
– Easier (faster, and cheaper)to implement and maintain
– Less reliance on internal IT
– Operating vs. capital expenditures
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
But…
• Security is a concern
– But how much?
• And many of us in AP, and accounting in general,
are, hmmm, shall we say: CONTROL FREAKS!!!!! • Which may make it hard for us to embrace the
cloud
• As opposed to software and servers we have purchased, own, and control
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
And… • It’s important to understand what the vendor
is actually offering
• Is the software customizable?
• Or configurable?
• If you can’t adapt to the software’s functionality without major customizations maybe you need to keep looking
• In addition, it’s important to understand IT’s opinion of SaaS/hosted before you go there
– Some embrace it & already have implemented one or more such solutions
– Some, not so much – they may have security concerns and control issues, too
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Sorting Out the Vendors • There are so many in the AP automation space
– And many seem to be providing the same solution
• Do you want invoices or a “solution?” – Images? Images & data? Just data?
– Workflow with approvals & matching capabilities?
• Consider price vs. features & service
• Who will have staying power? – Who will be bought?
– Who will do the buying?
• Who has a proven track record? – Is it important that they have experience in your industry?
35
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Sorting Out the Vendors, continued
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• Understand security & data integrity issues – Upon leaving a SaaS/hosted vendor – what happens to
your data? • Meet more than the sales team
– Who will you be working with? • On implementation? • On an ongoing basis – support, etc?
• Do the demo – With your invoices that you provide
• Do the reference calls • Make the site visits • Facts, not emotion, need to win out
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Learn the Rules of the Game • Understand the process for getting a project
approved (and implemented)
• Building the business case
– ROI calculations – is there a standard form or format?
• Paperwork
– What’s required?
• Idea statement?
• RFI? RFP? RFQ?
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Rules of the Game, continued • Capital vs. operating/expense expenditure?
– Buy and maintain usually falls under the capital budget
– SaaS/hosted often falls under the operating budget
• Are there additional hoops to jump through for capital projects?
– Special committees (like steering committees)
– When do committees meet?
– When is funding granted?
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Rules of the Game, continued
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• When are budgets prepared? – And approved? – By whom?
• Prioritizing of projects – is there a list your project needs to be on? • Which decision maker or other high level person could be
your sponsor? – Most AP departments report to finance – look there
for your sponsor (preferably one with a lot of clout!) – Sponsors can help smooth the way
• Especially with other departments that will be affected by changes in AP
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Getting to the Next Step – Approval • Identify corporate objectives
• CFO cares about cutting costs
– Where AP usually lives…
• CEO cares about increasing revenue
– Discounts, pcard rebates
• Identify the true decision makers
• Heighten the awareness of the decision makers
– Most of the time decision makers have no idea what the problems are!
• Influence the priorities of the decision makers
• Match the benefits of your solution to the priorities of the decision-makers
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Sell the Benefits of Automation
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• Increased efficiency can lead to lower headcount
– And the opportunity to capture more
prompt payment discounts
– And decrease the frequency of supply
chain interruptions
– And decrease the number of late fees and the amount of interest on late payments
• Fewer errors can lead to lower headcount
– And keep the cash at home instead of in the wrong hands
– And lower the amount handed over to post auditors
– And decrease the frequency of supply chain interruptions
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Sell the Benefits, continued
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• Streamlined approval process can lead to lower headcount – Even in other departments – And increase worker satisfaction (less nagging and back and forth over late approvals)
• Increased visibility into payables can lead to lower head count
– And improve cash flow – And the opportunity to capture more prompt payment discounts
• Even the opportunity to implement dynamic discounting
– Spend analysis can help eliminate maverick spend and consolidate spending for savings
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Closing the Deal Internally • Determine costs and budgets
– Be thorough
– Use common sense
• Benefits, not features
– Don’t get bogged down in the technology
• Illustrate as many hard benefits as possible
• Present the numbers
– Save X FTE’s
– Cut X days out of the process
– Soft benefits are icing on the cake
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Closing Internally, continued • Risk of change vs. risk of not changing
– Remember that not changing has its own costs and risks
– Can you quantify these costs and risks?
• Opportunity costs…..
• Calculate ROI (Return on Investment) and
length of payback period
• What is the payback period?
– Be realistic, specific, and hard-nosed
• No wishful thinking allowed
• Overestimate the costs
– But not so far as to get the project thrown out!
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Congratulations!
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• Be careful what you wish for!
• Now the real work begins…
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
All that’s Left is to:
• Gather your team
• Define the project
• Test
• Implement
• Manage change
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Managing Change • Whether it’s total automation or automation
of even the smallest piece or part, change is an issue
– Inside AP, within the larger organization, and, depending on what you implement, your vendor population
• And change doesn’t manage itself
• Well, it does, but extremely poorly
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Lead the Charge/Change
• Be a “cheerleader for change”
• You’ve been leading the way, not time to quit now
• Manage change from the outset
• Your attitude is catching…
• How will it affect people?
– Who will it affect most?
– When will it have impact?
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
How? • Meet regularly – early and often
• Start as soon as the project gets the okay to proceed
• Get everyone involved to whatever extent makes sense
• Ask for input, wish lists, etc.
• Share progress
• Remember, communication is key
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Dealing with the Decline in Headcount • You promised it, now you have to manage it • Talk early and often about how tasks will change
– Create new job descriptions – Some people may simply change what they do
• Embrace natural attrition – People come and go on a regular basis – Some people may self select out
• Assist top performers who want to take on other tasks in the organization • Work with HR
May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Assessing the Project • Did it accomplish what you wanted it to do?
• If not, why not?
• Remember – the project was supposed to be measurable
– Measure it
• What’s next?
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May 7-9, 2017
Disney’s Yacht & Beach Club Resorts®, Florida
Questions
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