The C-Suite Concierge
CREATIVE COLLABORATION FOCUSED ON C-SUITE PRIORITIES
Covid-19 has brought challenges to supply chain management and vendor relations beyond the typical price and on time delivery metrics. Supply chain delivery disruptions and Covid-19 shut down dynamics have affected not only production schedules and customer deliveries, but also aspects of vendor invoicing and accounts payable processing.
The impact of Covid-19 has resulted in a search for simpler, faster, and more efficient ways to handle day to day overhead processes and still meet customer order requirements. Through the use of automated business logic processes, technology systems can free up labor for higher value projects without requiring an increase in payroll numbers.
When efficiency and cost reduction solutions are promised by technology system vendors, it falls to C-Suite level management to evaluate the suitability of any proposal that promises not only significant operational efficiencies but potentially a 20-30% reduction of specific AP expenses. Depending on annual expense figures, that percentage of expense reduction could result in a SIX or SEVEN FIGURE CASH FLOW REALLOCATION OPPORTUNITY.
The next section of this web page highlights common roadblocks which keep desired cost reduction and labor efficiency initiatives on hold or perhaps postponed until a subsequent budget year.
As noted by Lifesize, a global provider of cloud based conferencing systems, "the single most compelling reason to install any technology is to be more productive." In terms of productivity, technology systems can
apply cost control analysis to data intensive processes and reduce human error by automating repetitive operational activities.
However, standing in the way of technology changes are real world business realities as shown in the survey results in the chart above. These results reveal THREE CATEGORIES of reasons given by companies for choosing NOT to implement a marketing system designed to increase their sales and drive customer acquisition:
1. Lack of financial resources
2. Lack of technology resources, and
3. Resistance to change by management and the organizational structure
A clear eyed analysis of these potential roadblocks needs to be addressed before investing serious time in the evaluation of any system that promises balance sheet cost savings and manual labor reductions.
Hitting the Target
Consequently, instead of being a reason why a system CANNOT be implemented, financial and technology issues can actually be reasons why a specialized technology system SHOULD BE adopted. When an analysis of current operational data is made, cost saving figures can verify 'upfront" that a perceived FINANCIAL IMPEDIMENT can be eliminated once the technology system is in operation.
When it comes to the issue of "COST", there is more on the table than just an invoice. A new technology system always brings some level of work performance disruption as users adjust to changes from "the way we've always done it". However, unlike the level of disruption resulting from major ERP system changes, the integration of specialized niche focused systems does not affect all levels of the organization. Nevertheless, the "cost-benefit ratio" of any system implementation should be clearly addressed in the analysis process.
With regard to the perceived TECHNOLOGY IMPEDIMENT reason, if the technology system supplier handles the set-up and/or integration process, then the perceived technology impediment to adopting the system can likely also be eliminated.
The third category of survey results dealt with normal human resistance to change and organizational politics. A carefully laid out due diligence process that includes "key" voices from various levels of the organization can increase "buy in" and minimize the human resistance dynamic.
However, ego and/or turf issues at the C-suite management level are always a challenge to making progress toward desired business goals. That the "turf" dynamic was the third highest survey impediment to system change reveals the critical importance of genuine collaboration in the decision making process when dealing with systems that promise serious cash flow and operational efficiency results.
So, the collaboration questions are:
Which of the three perceived "impediment" categories, if any, appear to be limiting your choice of solutions to problems which you need to address at this time?
Would it make sense to have an initial collaboration conversation focusing on your top priorities? If so, use the form below to let me know what you suggest.