More and more companies are currently facing the challenge of adapting their internal framework conditions and processes in a future-oriented manner more than ever. Numerous factors that have an influence on the future corporate world are decisive for this: demographic change, shortage of skilled workers, cost pressure or competitiveness are just a few keywords that keep top decision-makers and managing directors pondering.At the same time, more and more resources in the company are being used for administrative or supporting processes – there is hardly any room for strategic tasks. But it is precisely these processes that add value and are important for the company. This makes it all the more important for many companies to uncover strategic freedom and reduce administrative tasks.
Creating strategic freedom – but how?
As early as 2012, the consulting firm Steria Mummert Consulting was able to determine that 94% of decision-makers and managing directors of German companies have already dealt with topics such as the relocation of administrative processes and outsourcing as an option – this interest is not diminishing in 2015. But before such a step can be considered, every company should make a clear separation of tasks and thus evaluate which know-how is value-adding in its own company and which administrative tasks can be shifted. This approach has been consolidated by a study by Kienbaum Management Consultants in 2012/2013.
Especially in administration, staff are increasingly suffocating on administrative tasks – especially in the areas of financial accounting, payroll accounting, travel expense accounting or applicant management, there is a high amount of administrative work that makes it almost impossible to think about operational or even strategic topics. How complex is e.g. the monthly recurring preparation of payroll accounting for each employee? If this is not guaranteed on time, this can have considerable consequences for companies – there may not be time for strategic HR issues. This is just one example that shows how the administration can almost completely devour the strategy.
The awareness of uncovering administrative tasks in the company is the first step in creating freedom. But once companies have identified and analyzed this first step – the separation of duties – they are already faced with the next, and even more important, issue: Where to put these tasks?
Relocation of tasks and processes – spoilt for choice with outsourcing & Co.?
Relocating tasks or processes in the company is not easy. However, if a company knows its own requirements and expectations, it can be worthwhile to compare the (previous) in-house solution with the outsourcing of administrative tasks. Outsourcing can take different forms.
When administrative tasks are outsourced to external service providers, the term Business Process Outsourcing (BPO) is often used. Shifting typical administrative tasks creates the freedom for many employees in the company to tackle operational or strategic issues – thus giving a company the opportunity to concentrate more on its own core competencies. According to the 2014 PAC study, this is also a decisive factor in favor of a BPO project.
A BPO project must be carefully planned in advance, but with the right service provider it is not rocket science, even without the help of a third party (e.g. a consultant). For a successful project, it is important to have intensive discussions with the service provider(s) in advance in order to clearly highlight your own requirements for both sides. In the case of a BPO project, there can also be a transfer of business in which employees of a company are transferred to the service provider – this often complicated, but important topic regulates e.g. § 613a of the Civil Code.
In a detailed inventory (analysis of the current situation), you can also discuss together which tasks can or should be outsourced. In addition to a complete outsourcing of administrative tasks, only partial processes can be outsourced – in this case, one usually speaks of outtasking. This includes, for example, digitization or scanning services or the receipt entry of travel expense reports.
In addition to the pure assumption of administrative tasks, specialized service providers also cover the associated IT environment. For this purpose, sog. ASP solutions (Application Service Management) are provided. Individual system modules can be operated or complete ERP systems (e.g. SAP,® P&I LOGA) can be operated and supported by the service provider.
It is also important for the company to know in which country the data storage and data processing as well as the operation and support of IT systems takes place. Not every company wants to move personal data to other countries through offshoring solutions – communication problems or data protection concerns are at the forefront here. Selected service providers guarantee, for example, an exclusive provision of services in Germany.
The right approach?
Due to constantly changing demands on one’s own corporate world, the awareness of separation of duties is more necessary than ever. Shifting administrative tasks can be a helpful tool in this regard, but at the same time it is one of the most difficult tasks for a company. There is no standard procedure.
However, independent consultants or external service providers can help to uncover possible bottlenecks and thus prepare for the future. You can give the company additional impetus and develop new approaches that allow you to look beyond your own nose in the company.
After all, the fact is that companies must concentrate more on their core competencies and at the same time develop strategically in order to be competitive and counteract cost pressure and/or a shortage of skilled workers. By shifting administrative tasks, a first step can be taken in this direction.
How do you deal with administrative tasks in your company? Have you already thought about outsourcing to a specialized service provider for business process outsourcing? We look forward to your comments!
Image Credit: Fotolia.com, Photographer: Brian Jackson
