an effective ap policies & procedures manual can help move · may 7-9, 2017 in addition...

May 7-9, 2017

Disney’s Yacht & Beach Club Resorts®, Florida

An Effective AP Policies & Procedures Manual can Help Move

AP from “Good to Great!”

Pam Miller : : Senior Trainer : : IOFM

May 7-9, 2017


“Good to Great”

• Sound familiar? • The rest of the title of the book by James C.

Collins: “Why Some Companies Make the Leap…and Others Don’t”

• Another quote: “Good is the enemy of the great… it’s so easy to settle…”

• Great tools enable great performance – think about it – the AP manual is absolutely a tool

May 7-9, 2017


AP Manual – Why? • The answer is easy if you are a public company

• SOX

• If you are a public company you are supposed to have all your procedures written down and tested against what people are doing on a daily basis

• And the reality is that while we may have complied with this requirement, the result may

or may not actually be useful

in real life

May 7-9, 2017


That Tool Thing • A manual provides the “rules of the game”

– AP is an area comprised of many complex tasks

– AP is an area full of risk – internal & external

• A manual keeps people on the same page –

doing the same tasks in the same way

– Which ensures that tasks are

actually completed

– And that risk is mitigated

May 7-9, 2017


In Addition • A manual is a training tool

– Certainly for new hires

– And not just for folks in AP

• It’s a reference tool

– The source of truth as to how, when, why, to what extent, & where

– And the who – not names – positions or titles

• It provides cover for when others push back against the rules

• And for when others try to put the blame for whatever bad happens on AP

May 7-9, 2017


Let’s Get Real – Does your AP Manual Look Like:

This? Or This?

May 7-9, 2017


Okay, We Have Work to Do, What’s the Plan?

• Assess what you have now

• Most of us have something so we will be fixing or maybe consolidating assorted pieces and parts rather than constructing

– You know, all those memos, cheat sheets,

lists, sticky notes that have accumulated

on cubicle walls and monitors

• Then determine a plan of action

May 7-9, 2017


The Manual Project Represents Opportunity!

• Opportunity to review what AP

does & how it is done (& why)

• Opportunity to throw out

outdated policies

• And outdated procedures

• To get rid of the “that’s the way we’ve always done it”

• “Remember that the 6 most expensive words in business are: ‘We’ve always done it that way.’” – Catherine DeVrye

• Opportunity to include fresh, sparkling new and AP friendly policies & procedures – ones that make sense!

May 7-9, 2017


Creating (or Fixing) the Manual • This makes a great group project &

working on it can be a super

learning experience

• Start with the policies

– This is probably best done in a series of

group discussions

– And may require including folks from outside of AP

• Move on to the procedures

– Consider assigning them to individuals, particularly those who perform certain tasks

May 7-9, 2017


Policies vs. Procedures

• They are different animals

• You need both

• Policies are somewhat

philosophical

• Policies are often developed in places that are not AP

• Although AP needs to develop their own

• Or at least put their own interpretation on them

• Procedures are the “how-tos” – the step by step

May 7-9, 2017


Examples of Policies

• We take all discounts offered –

or we pay in 45 days

• Our preferred method of payment

is by ACH

• We do not sign personal guarantees on credit apps

• Requests for payment must contain 2 signatures

• The fee for a rush check is $125.00

• Requests for payment must be received in AP by noon on Tuesday for Friday’s payment runs

May 7-9, 2017


Examples of Procedures • How to process an invoice – step by step • How to complete an expense report – step by step • How to reconcile your p-card statement – step by step • How to perform a check run – step by step • Step by step is key when writing procedures

May 7-9, 2017


There are 2 Kinds of People in the World Those who love to read instructions And those who don’t

May 7-9, 2017


Creating a Useful Manual, Not a Doorstop

• The goal is to get people to read

& use this tool

• First, dispense with the idea of

“a” manual

– And no, that doesn’t mean that that pile of notes and stickies is okay….

• Consider separating policies from procedures

• Consider separating internal AP procedures from procedures outsiders need to follow

May 7-9, 2017


Not a Doorstop, continued • Consider various formats

– Tailored to the audience that needs to know what you are trying to impart

• Consider delivery methods – How are you going to get the right information to the right people at the right time?

• Focus on design – Of the instructions – And particularly of forms

May 7-9, 2017


Where to Begin • Collect it all!

• The existing manual – on paper – or if online, get out that projector so you can all look at the same thing at the same time

• All the notes, cheat sheets, yellow stickies, etc. that everyone has stuck everywhere

• Notes or complaints you have kept

• Suggestions that you have stuck

somewhere

• Collect everyone!

May 7-9, 2017


Organization • Create a numbering system

– Sections and sub-sections

– Easy to replace outdated sections

• Add the section number (and a link if your manual is online) to each and every form so people know where to go to get answers to their questions on completing the form

– No, it doesn’t guarantee they will read the instructions

– And no, it won’t eliminate calls to AP, but…

• It will help!

May 7-9, 2017


Expiration Dates

• A written manual is likely to become out of date quickly – it seems as soon as it is printed!

• A loose leaf binder can help

• That way you can pull the

expired pages and replace

with new ones – Based on your numbering system

• But, really, is everyone in the organization likely to keep up with this task…

May 7-9, 2017


On-line is Better • Easily accessible by both AP staff and all others

who are affected

• Can use links!

• Easy to update – one update

updates it for everyone

• But it’s easy to lose updates – as you update indicate at the outset what has been updated

– Add “What’s New” and a “What’s Changed” section to the landing page

• Update these as you update the manual

May 7-9, 2017


Let’s Talk Policies… • Some existing policies may be detrimental to the

smooth functioning of AP

• Some may be unclear or outdated

• Discussions may need to go outside of AP

• Itemize questionable policies and

come up with alternatives that

accomplish the same thing

• Changes are more likely to be approved if choices are provided – less thinking required on the part of the approvers!

May 7-9, 2017


Procedures • It’s a good idea to flow chart your procedures

• You are likely to uncover remnant steps or even entire procedures that are so out of date they make no sense

• Be open minded

• Many processes and steps in

processes were decreed by

folks long gone

• Or were required for the software in use when they were created

May 7-9, 2017


Procedures, continued • Group discussions on procedures will likely

uncover many (and, we hope, all) the workarounds that people have added – Some of which you may want to adapt and/or

adopt – And some of which may lead to gaps, risks, or other issues

• Be open minded • And non-judgmental

May 7-9, 2017


Procedures, continued • Keep in mind that you probably update these all the

time without even realizing it – and so does the staff

• Think about all the sticky notes & the cheat sheets

• And the memos that go out particularly when a problem or gap has been discovered

• This is your opportunity

to incorporate the latest

and greatest into the

approved procedures

May 7-9, 2017


A Picture is Worth 1000 Words • Just because the manual has always been

words doesn’t mean it always has to be

• Include flow charts – Let people know how a process works

– And who all is involved in the process

• Include screen shots – So much work is done on screens now

– Add arrows, circles, notes on what is and is not acceptable data for particular fields

May 7-9, 2017


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Processor And Editor


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Form

Checks & ACH

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Cleared Checks

Intranet

Direct Drive Pcard

Direct Drive Invoicing


1000 Words Equivalent

May 7-9, 2017


Another 1000 Words Equivalent

May 7-9, 2017


Include AP Forms in the Manual • In a separate section – like an appendix

• Or in the sections where they are discussed

• With links in a side bar so they can be easily

accessed

• And in other spots as well – on AP’s landing page, on a shared drive

• And for paper forms –

– in in the mailroom, on a easily accessible shelf in AP, etc.

– In a downloadable format on a shared drive

• Don’t forget to include reference or links to where the instructions are in the manual

May 7-9, 2017


Whether Paper or Online, Form Design is Critical

• Forms should include instructions – on the front, not the back!

• General instructions at the top

• Specific instructions where needed

• Use plain, non ambiguous language

– “Two signatures required”

• Include routing instructions if completion does not spawn a workflow – people need to know where your lovely form goes!

– And even if there is workflow, indicate the path the form will take

May 7-9, 2017


Forms, continued • Online forms are cool…

– They can be completed from anywhere 24/7

– They are not all that difficult to build

• Well, well designed ones are a little harder than poorly designed ones

• Make them “complete-able” on line

– Ensures required fields are completed

• Use drop down boxes

– Ensures data uniformity & accuracy

• And then submit-able

– Or printable if you must (with the data filled in)

May 7-9, 2017


Put that Manual to Work for You • Can you make a video of the most common

procedures that those outside of AP must follow?

• Like how to complete an online check request?

• Or an expense report?

• Links in the manual, in the side bar, maybe even add the site address to the form

• Doesn’t have to be fancy

• Remember people learn

in different ways

May 7-9, 2017


To Work for You, continued • Make (printable) e-books that include forms &

instructions (with links) for common procedures

– Completing an expense report

– Reviewing p-card transactions

• Provide them to HR or whoever

orients new employees who will

be performing these tasks

• And keep instructions for how to find them – or even a few paper copies handy for re-education efforts

May 7-9, 2017


To Work for You, continued • Consider doing some web-based training

• About tasks commonly performed (maybe not so well) by those outside of AP

– Completing an expense report

– Reviewing p-card transactions

• Especially when new procedures are added

• Or when there is a significant change

• Especially new software

• Record these and add them to your video library

May 7-9, 2017


To Work for You, continued • The same violations happen all the time

• Create form letters that cover those

problems and stash them on a shared

drive or other central location

– Use the language of the manual – and include the appropriate section numbers

• Pull pages/sections of the manual that explain the policy and/or procedure in question

• Return the expense report, invoice, payment request, etc. along with the form letter and pertinent section of the manual

May 7-9, 2017


FAQS • Create a Frequently Asked Questions page(s)

• FAQS directed primarily to those outside of AP

• Include all the areas where problems are recurring

• Include references (and links) to where in the manual the pertinent policy and/or procedures may be found

May 7-9, 2017


WIKI • Directed primarily to those within AP

• Include the questions that are always asked

• And the areas where errors are made most often

• And links to the manual

– And to where the form

letters & manual pages are

located

• And information AP needs that maybe shouldn’t be disseminated to everyone in the organization

– Like terms lists

May 7-9, 2017


Cheat Sheets & Reminders • Nothing wrong with them –

there is a lot to remember in AP

• But better when it comes from

one source and they are all the same & match

what the manual says

• Consider adding the appropriate section reference for quick access to additional information in the manual

• Update in unison

May 7-9, 2017


Keeping It Up-to-Date • Ideally as something changes pull the old

section and substitute with the new

• Often easier said than done

• As you develop new processes or procedures, or implement new software, use your instructions to AP as the basis for changes in the manual

– You have already done a lot

of the work

May 7-9, 2017


Keeping It Up-to-Date, continued • Schedule a manual discussion session with AP on a

monthly or quarterly basis

– Helps keep everyone on the same page

– Catch those new workarounds before they are too bound to the procedure or

cause a problem

• Or as a project for the least busy

month of the year

• The manual is a valuable tool

• And it needs to be cared for…

May 7-9, 2017


We Want to Move from This…

To This….Well, at Least in This Direction

May 7-9, 2017


an effective ap policies & procedures manual can help move · may 7-9, 2017 in addition...

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