A.I.C.M. National Conference Gold Coast 12th October 2007 Prepared & Presented by Colin Prosser FICM...
-
Upload
kellie-blessing -
Category
Documents
-
view
216 -
download
2
Transcript of A.I.C.M. National Conference Gold Coast 12th October 2007 Prepared & Presented by Colin Prosser FICM...
A.I.C.M. National Conference
Gold Coast
12th October 2007
Prepared & Presented by Colin Prosser FICM CCE
Back Office - Outsourcing in Australia & Overseas
2 My Background
36 years in Credit Management & Accounting Hold Diploma in Business Studies in Accounting - 1988 AICM Member since 1985 Fellowship Membership with A.I.C.M - 2004 Hold Certified Credit Executive ( CCE ) Status – 1998 AICM Councillor – Vic / Tas Div’n – 1997 to 99 & 2003 to
2006 AICM President – Vic / Tas Div’n – 2005/6 Currently AICM Director – Member Services – 2006 to now Worked in various Industries over the years including
Manufacturing, Media, Finance & Title Searching, Telecommunications, Local Govt, 3@Law, Supplier / Distribution – Retail, Wholesale & Service, Accountancy, Electricity Supply, Plant and Equipment, Construction / Building
3 My Employer’s Background
Stamfords Advisors & Consultants
Been in Business for over 25 years
Has over 200 Employees
Has Offices in Perth, Sydney and Melbourne
Provide a wide variety of Accounting Services including:
– Business Process Outsourcing
– Assurance & Risk Management
– Management Consulting
– Business Advisory Services
– Corporate Finance
– Information Systems & Technology Consulting
4 Outsourcing “Definitions”
To contract outside ( jobs, services, etc.) the company rather than employ more in-house staff: e.g: a small business that outsources bookkeeping to an accounting firm.
Negotiated Agreement, creating understanding about services, responsibilities, expectations & priorities.
Strategically place business functions, by using an outside ( 3rd party) business to manage.
Complete tasks or duties for others and to do it cheaper, better & / or more efficiently ( improve productivity / results ).
5 When did Outsourcing Start ??!!
Recognised as starting in the 80’s ( called - work specialisation ) but what about these:
– Middle Ages – Royalty and Nobles used Armies to fight battles, the Butler & Staff tend to their household, Serfs and Slaves to harvest their Food and tender their Animals / Stables
– Industrial Revolution – Line Assembly Production – Components, Weaving, Packaging, Cars – Parts, Welding, Spray Painting & Assembly Robots / Mechanical Arms -Japan smaller / cheaper
– Telecommunication / Computer Age - Marketing / Research / Polls by Phone / Message Bank – Home ( 101 ); Mobiles / Electronic Media ( save trees ).
6 Global Giant Companies – Outsourcing Overseas
IBM
Hewlett Packard
General Electric
Reebok
Fujitsu
Microsoft
General Motors
Phillips
Oracle
AT&T
Governments:
– Federal;
– State; or
– Foreign
Banks:
– Deutsche;
– HSBC; and
– Bank of America
7 Outsourcing Overseas Issues
Privacy Issues – Name, Address, DOB and Phone
Security Issues – Credit Card and Bank Account details
Australian ( ASIC/ACCC ) Debt Collection Guidelines Issues
Language Issues – Understanding & Comprehension
Different Time Zones (India, China, Indonesia, Mexico, Botswana, Columbia & Philippines)
Lack of Knowledge (only cover FAQ’s)
8 Everyday Outsourcing
Marketing & Call Centre by Phone ( your Goods / Services )
HPA – Locked Bag ( Mail, Processing & Banking )
Dry Cleaners & / or Ironing
Mechanic ( Grease, Oil change, Tune up )
RACV Roadside Assist ( Flat Tyre, out of Petrol )
Jim’s Mowing ( Lawn & Gardening )
Babysitter / Child Minding Services
Takeaway Food / Restaurants
House Keeping / Maid Services
Taxi / Chauffeur
Surrogate Mothers
9 Types of Non–Core Operations that are Outsourced
Accounts Receivable / Credit Management
Accounts Payable
Billing – Invoicing, Standard Follow up Letters & Statements
Call Centre
Customer Service
Data Entry / Payment Processing
IT Server/s & Maintenance
Payroll
Human Resources
Procurement
Mailing / Printing / Photocopying / Scanning / Binding
10 Benefits of Outsourcing
Improves Cash flow ( Wages / Super ) , Administration Costs
Floor Space – Better Usage
Electricity and Telecommunication Costs
Gain Knowledge and Expertise
Better Efficiencies and Effectiveness
Better Computer / IT Capabilities
Skills Upgrade, Retention & Access
Save on Supervision, Staff Replacement & associated Costs No Sick Leave or Annual Leave Issues
Re-invest saving in Core Business activities
Economic Issues less effect ( Interest Rates )
11 Reasons to Outsource
Tight Job Market - National Skill Shortage
National Un-Employment is at 4.3%
Greater Efforts made to retain Critical Staff
Higher Salary Packages
Concentrate on Core Business – Selling & Marketing
Detailed Reporting
KPI’s & Timeframes must be met
SLA – Service Level Agreement (Guarantee Performance Levels)
12 Service Level Agreement
Communication Tool between Parties
Lists a Start / End Date or a Period; Objectives; Fees / Costs
Outlines Service/s and Management Levels
Define Tasks, Duties and Reporting ( Frequency )
Performance Agreement measure KPI’s and Deadlines
Monitor, Audit & Review of Service/s
Ongoing – Flexible Document – Review Annually
13 Possible SLA Duties & Responsibilities
Outline Daily, Weekly, Monthly, Quarterly and Yearly Reporting
Compliance, Insurance, Data Integrity, Records Management and Business Continuity Plan
Maintain and Update Credit Policy, Manual/s and Procedures Communication lines – Phone, Email and face to face Meetings
Ledger/s Management – Phone Calls – Credit and/or Customer Service ( plus Feedback )
Reconcile Bank Accounts, G/L Journals, T/B, Revenue Forecasts
Data Input – Transactions and Debtor Notes
Daily Banking
14 Possible SLA Duties & Responsibilities Continued
Budgets – Monthly Comparison - Actual to Forecast
Risk Management, Legal Action, Internal / External Audits
Minimize Doubtful and Bad Debt/s
Six (6) monthly review and discussion of KPI’s and Timeframes
15 Considering Outsourcing some Questions to ask Yourself
Can your internal processes be improved
Can Staff time be better spent
How effective and efficient are you
Do you have the right expertise
What would costs savings be ( 30% to 60% )
How could you use the re-invest the savings
Can you better use the Floor Space
16 Example : Credit Department
Credit Manager, Supervisor & 8 Credit Officers
Old PC’s / Server, Accounting Programs and Microsoft Products
Cost of Phones, Electricity, Workstations, Floor space, Salaries, Super, W/Comp etc
Sick Leave, Annual Leave & Staff Replacement costs ( Down Time )
Old / Non Functional Office/s ( affect Moral )
17 Example : Outsourced Credit Department
Experienced Professional Credit Staff
Leading IT/Computer Software
Latest Communication Technology
Must meet KPI’s, Deadlines & Reporting
Increased Efficiencies & Effectiveness
Scaleable Solutions (Large or Small)
Reduces/Transfers Risk/Responsibility
18
Questions ??