talk is heap! stop fixin to automate & get it done · –look for bang for the buck, low...

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


Full Texan

Really Fell victim to editing…

May 7-9, 2017


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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


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

34

May 7-9, 2017


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?

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May 7-9, 2017


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


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?

37

May 7-9, 2017


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


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


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


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


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


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


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


Congratulations!

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• Be careful what you wish for!

• Now the real work begins…

May 7-9, 2017


All that’s Left is to:

• Gather your team

• Define the project

• Test

• Implement

• Manage change

May 7-9, 2017


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


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


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


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


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


Questions

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talk is heap! stop fixin to automate & get it done · –look for bang for the buck, low...

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