Crossvale? Integrate, Automate, Deliver

In this final installment, we discuss challenges with tackling the third component of the People-Process-Technology "Trinity of Improvement".

I have heard, seen, and experienced variations of this story so many times it nearly tarnishes IT shops everywhere.  It may not always be the sales reps, or PeopleSoft, or expense reports.  But I'll wager you’ve seen this too:

A company has a 2000-strong sales force that must squeeze in interruptive administrivia when what they really want to do is sell, sell, and sell some more—and their managers agree entirely.  Part of the administrivia is the expense report process to the tune of one to 3 hours a week of their time (let's call it an average of 1.5hrs each).  The process takes a while, the finance department doesn't like the speed of processing or the inconsistencies, and the dozen staff that processes the expense reports hate being bothered all the time with handholding, chasing down, and providing status to sales reps.

So the obvious solution is a major [and expensive] IT initiative to revamp and customize their PeopleSoft system to provide a modern system for those expense report processors.  After a lengthy implementation, the improved system is so efficient that the workload can be performed by six expense report processors, and furthermore an offshore team at that.

This is a major win!  After all, the six months and $1M clearly shows some cost improvement with the smaller and cheaper finance team.  High fives all around, right???

Unfortunately, there is a major travesty here instead; a combination of the following:

1. The 2000 sales reps are still spending an average of 3000 hours per week on their expense reports—and that's if the PeopleSoft change and/or the finance team reduction and outsource didn't actually *increase* the time required of the sales reps.  Additionally, it is unlikely that the back end is getting any increased submission or decreased error rates from the work stream to improve the financial situation.
2. Leadership likely considered this a strategic win, received accolades, and will move its fickle cone of attention elsewhere.
3. The IT designers, implementers, testers, etc. also think they've done the company a great service.  Even when an IT department executes with great skill, all too often they have no idea what a silo they work in, and how disconnected they are from the business that depends on them.  (Is anyone remembering the line "We did nothing wrong" at the end of A Few Good Men? See http://www.imdb.com/title/tt0104257/quotes?qt0470392 for a trip to the past)

There are many technical solutions to problems.  If you set aside the topics of cost and skill sets, just about any half-way modern software system can be used to turn out whatever is deemed required. But if neither the Process nor the People are incorporated into the solution, you will simply have performed an exercise in futility and expense.  "It's the value stream, stupid" is a mantra well worth meditating on.