Will spending more on improving your system’s processing efficiency be a major factor in improving your decision making?
Most proposals evaluating new business application projects go to the lowest common denominator. How much cash can I save? Or what are my efficiency savings? This is largely because these are most easily measured and the most valued. Unfortunately, in most organisations, managers in their individual silos will make business cases to senior management based on calculations that are easy and relate only to their silo or business unit.
But should we instead make investment decisions based on improving the effectiveness of our decision making processes and making the business more competitive? How would you measure the ROI or degree of success? Not such an easy task.
The governance of your organisations’ processes provides the direction and course correction required to achieve your goals. Without this, competitiveness is a matter of luck.
The sort of systems that assist in this governance are not the systems that help you process your orders or manage your debits and credits and vice versa.
However now you have invested, perhaps heavily, in processing systems, isn’t it about time you focussed on systems of governance and competitiveness?
The simplest starting point in governance systems is your budgeting and forecasting processes. Budgeting is allocating your resources to achieve your business goals. It is the cornerstone of performance management. However it is not an end in itself, it is a stepping stone on the governance journey.
Typically projects for this are dedicated to breaking down budgeting and forecasting into a silo of the finance department. But this is wasting an ideal opportunity to expand performance management to questions of competitiveness and governance of the organisation.
If you would like to see a system which delivers not just a budgeting and forecasting platform in the most effective manner but delivers an integrated business planning solution that links operations and finance processes; delivers decision support and organisational governance, then come to one of our seminars in Melbourne, Sydney and Brisbane and get yourself ahead of the curve.
You can read more about Professional Advantage and corporate performance management here.
Looking to develop a truly integrated business planning system? Details of our upcoming seminar here.
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