Internal Review Outcomes
Last week, we discussed ‘Reviewing Internal Systems and Processes‘. Following on from this, we will explore the possibilities that arise after a thorough internal review.
You may find that after conducting an internal review, you’ve already managed to resolve some inefficiencies within the existing structure. You may have changed your timelines for external inputs from line managers which has cut down on bottlenecks in the process. You may have sourced some training which gave you better capacity to fully utilise your existing software suite.
If not, then you will likely be facing one of the following possibilities and need to decide your next step.
Logically, what happens when we explore those possibilities?
Option 1: Slim down expectations and assumptions to streamline the existing system.
Often, this leads to losing the flexibility and nuance that led you to choose a specific system in the first place. Your go-to spreadsheet tool is particularly penalised in this case, because it is geared towards providing that flexibility.
Option 2: Start from scratch and re-build your existing systems – faster, higher stronger.
You still need to build your budget again from the ground up. Be aware that even using your favourite spreadsheet software, this is equivalent to investing in a new ‘operating system’ for your budget.
- You’re committing to time spent (re)creating the functionality that you want and need.
- You’re committing to resourcing its maintenance and any modifications as much as you would do for a proprietary product.
- There is also no guarantee, having restarted from a zero base, that you will not be facing similar challenges again in the medium term.
Option 3: Introduce a system that’s designed from scratch to be a data entry, forecasting and analysis database.
While you won’t need to build the underlying system from scratch, you’ll still need to configure the system that you get off the shelf, or contract someone to do that.
However, the benefits of converting your existing structure to something which has been designed as an analysable database easily outweigh the costs of implementation. One case study reported a 400% return on investment when the cost of administrative and IT consulting time was taken into account.
With the second and third options, we’ve identified some things to remember when making any decision, and which we think apply to crafting a Decision Making Platform (like a budget system).
In our next post we will follow on from this thought process – check back here or drop us a line if you want to stay in touch with our updates on this topic.