Reviewing corporate savings in a Social Purpose organisation - Redirecting resources into the customer experience
The social services market has become increasingly competitive with new entrants in the sector and customers having greater freedom of choice in how these services are delivered. Therefore, social purpose organisations need to ensure their overheads are more efficient than before if they are to remain competitive and sustainable. Traditionally, driving process and system efficiency savings would go to the bottom line; however, those savings and efficiencies could now be better redirected into the customer experience, customer retention, and marketing for organisations striving to increase their customer-base and underpin long-term sustainability. In just a short period the National Disability Insurance Scheme has demonstrated that “providers” will not survive in the new world if they continue to use old and costly legacy systems. In order to survive and be successful organisations need to streamline their financial and operational delivery systems. For example, does your organisation have inefficient HR processes, unnecessary duplication, paper-based processes and inefficient and expensive communications platforms? More importantly, can you capture all billable costs and ensure all revenue is billed.Organisations that take the time to map their processes and investigate the design of more cost-effective solutions will generate savings. As a result, these organisations will better serve their customers or clients. For example, low cost unified communications, web-based software on flexible cloud platforms are standard solutions to ensure lower corporate overhead With reference to the NDIS, the government has made it clear, through its pricing structures that providers should operate using a modest 10% corporate overhead. –What is your company running at? As an example, for an organisation with revenue of $20,000,000, finding a 3% saving could generate $600,000 worth of funds that may be redirected into the customers’ experience, addressing the increasing competitive challenges of consumer choice.Engaging an external advisor to expeditiously review the organizations’ current overhead structure, table issues and recommend solutions can provide the organization with a more “competitive edge” At Social Purpose Consulting, our consultants have the expertise to review the corporate overhead, systems, and processes and provide tailored solutions. The stages below provide a general overview of our approach to conducting corporate reviews, with each engagement tailored for each organisation on a needs basis.For more information on the benefits of undertaking corporate reviews or to arrange for a free initial consultation and quote contact the team at Social Purpose Consulting on + 61 2 8052 3644. Stage 1. Process Mapping System and process walkthroughInterviews with staff and operational customersInterview external customersIT Strategic ReviewYTD purchaser review by supplierReview all outsourced agreements Stage 2. Systems ReviewFind cost-effective solutionsCapture all revenueBenchmark with industryTender major procurementInvestigate IT solutionPossible cloud and web-based efficiencies Stage 3. Action PlansEstablish ROIEstablish project timelines and transition planImplement solutions By Chris Mowday - Executive ConsultantMBA, ACA, BEcChris is a seasoned, commercially astute executive with 15 years’ experience at the CFO level. He is results focused, yet takes a balanced approach to business solutions having worked in both the private and not-for-profit sectors at national and international levels. Chris specialises in valuations, acquisitions and business turnaround that transforms company losses into sustainable profits. As a seasoned CFO Chris has extensive experience across all corporate functions including finance, IT and strategy. Chris also undertakes interim executive positions with Social Purpose organisations.