1. © 2011 Financial Operations Networks LLC How to Win Buy-In to Implement Best Practices and New Technology Judy Bicking Financial Operations Networks Wednesday, April 13, 2011

2. www.TheAPNetwork.com Page 2 Do You Feel Like YOU are the Only One Rowing the Boat?

3. www.TheAPNetwork.com Page 3 Room Discussion What are you working on that has run into road blocks? What are “THEY” saying? Internal customers are as important as external customers

4. www.TheAPNetwork.com Page 4 Resistance Resistance is the normal reaction IT IS NOT PERSONAL Ya But

5. www.TheAPNetwork.com Page 5 Resistance (Cont’d.) Do you have so many projects that nothing is getting done? ―People are confused about what you want ―YOU are spread too thin

6. www.TheAPNetwork.com Page 6 Try Relook at the: Ethics, Mission, Vision and Goals Everyone should be able to relate to EMVG ―CUSTOMER SERVICE ―The company ―AP vs. purchasing What does the client want/expect? ―Who is the client? P-card shotgun wedding

7. www.TheAPNetwork.com Page 7 Why Metrics Are So Important There may be too many problems to handle all at once Rack ‘em and stack ‘em (high dollar/high volume) ―Use the 80/20 rule Example: Mismatch issue statistics: 80% due to lack of receipt 15% due to quantity 5% related to price Mismatch issue statistics: 80% due to lack of receipt 15% due to quantity 5% related to price Missing Receipts Dollar Values: 78% valued under $1,000 17% valued between $1,001 -$5,000 5% valued more than $5,000 Missing Receipts Dollar Values: 78% valued under $1,000 17% valued between $1,001 -$5,000 5% valued more than $5,000 Type of purchases: 82% for non-inventory 16% service related 2% inventory Type of purchases: 82% for non-inventory 16% service related 2% inventory Tie to a best practice: —High volume creates bottlenecks, effects Cycle Time: Workflow —High dollar effect production/sales: Evaluated Receipts

8. www.TheAPNetwork.com Page 8 Resistance Only 1 in 10 can easily change What they hear ―The “old” way is wrong ―User friendly (Yeah Right!) ―I may not have the right skills ―Hard to give up current process PAPERless: harder than not smoking! PRINT

9. www.TheAPNetwork.com Page 9 Try Traditional: ―Presentation with facts, goal and metrics ―Close: try to get agreement Two-step approach ―1 st presentation with facts, goal and metrics Ask what their pain is Listen—don’t give solution—think you didn’t listen ―2 nd meeting Review 1 st meeting and especially their pain Solution with best practices and benchmark success WIIFT

10. www.TheAPNetwork.com Page 10 Benchmarking Get behind the metrics (how was it calculated) Which BP is right for you (ERS or EDI)? Ask leaders in a BP how they overcame roadblocks: i.e.: ERS – duplicate payments What is a “real” goal? ― 100% paid on time or 98% What should you be charting? ―Paid on time or first pass?

11. www.TheAPNetwork.com Page 11 Try Finding the Right Change Agent Get the biggest resistor on the team: ….who complains the most ……with the most late payments ……........ YOU try to avoid Into the decision, process building, first to go live WHY? When it works for them… the rest is easy AND you have an advocate !!

12. www.TheAPNetwork.com Page 12 Change Starts with YOU We want folks to change… How are we at changing? Who’s the biggest challenge? W I I F T ? ? ?

13. www.TheAPNetwork.com Page 13 IF All Else Fails Begging is okay !!! Use some humor!

14. www.TheAPNetwork.com Page 14 Case in Point Evaluated Receipt Settlement ―Over a year of presentations to get it off the ground AP suggesting – purchasing resisting Fear of loosing job Frustrated ―Begged one buyer to participate Bet dinner for two in the Bahamas NEVER had to pay off the bet because it worked One buyer became advocate! ―99% acceptance in less than a year!!

15. www.TheAPNetwork.com Page 15 Which Chart Do You Use? 1. 2. Change your vision/attitude Reflect the positive rather than the negative: ―Invoice NOT paid on time ―Invoices paid on time

16. www.TheAPNetwork.com Page 16 Charting for Results Baseline: no matter how bad... show real numbers *If you don’t measure it, you can’t manage it

17. www.TheAPNetwork.com Page 17 ResolutionMail Rec’d Sort Mail Day 1 - 200 AP Processor Index Key fields Scan Payment Day 1-3 Ages to Due Date Invoice Cycle Time EDI, ERS One Day How do you move from a cycle time of +200 days to one day? What suppliers are involved? What are the causes of a long cycle time? Ages to Due Date WHEN DOES the clock start??

18. www.TheAPNetwork.com Page 18 Training Everyone End-to-end training … AP process …… P2P ……… T2P ………… T2D …………… T2R FIND THE RIGHT SOLUTION

19. www.TheAPNetwork.com Page 19 End-to-End Thinking You’ve heard of 5 Star Hotel Rating You should be aiming for 7 Star Customer Rating Achieve a 7 star rating with ACES World-Class

20. www.TheAPNetwork.com Page 20 Finding a Best Practice “Touch it once” A utomate C onsolidate E liminate S implify what’s left

21. www.TheAPNetwork.com Page 21 Attitude They will follow management’s lead Negative attitude ―Negative results Positive attitude ―Positive results WITH new ideas Communicate Listen

22. © 2011 Financial Operations Networks LLC Thank You!