How to Improve Cost Accountability for Every Business Unit
Creating business unit accountability by demonstrating business unit costs in one centralized repository is the 35th reason to go beyond TEM and manage the enterprise digital footprint.
One of the many challenges of dealing with technology in the workplace nowadays is accountability. Business Dictionary defines the term as a form of transparency and taking responsibility for activities as well as their results, including money or any property.
But trouble with accountability does not necessarily come from ill-intentioned employees; it sometimes just stems from companies struggling to find out who is spending what and not being able to attribute costs accordingly.
Many organizations still store data in spreadsheets or Word documents, which is less than ideal because they are updated manually. It also gives room for errors and produces inexact versions that weren’t deleted from the system, a few situations you’ve probably experienced. Document and data sharing can also be tricky because people have to scan through all the information to find what they are looking for or what was added from the previous version. While the method might work for smaller workplaces, it quickly becomes confusing in businesses with multiple departments and business units. Many man-hours are spent entering everything manually and money is wasted because no one knows where expenses are allocated and if they should actually be incurred.
According to Harvard Business Review, companies struggle with accountability for a few reasons: their structure and business units are too complex, their work processes are continually evolving and, to put it simply, no one wants to take on the task. This is where the adoption of a technology expense management software that does it all for you comes in handy.
TEM’s Role in Accountability
Organizations that choose a TEM solution regain control of their technology environment because the centralization of all assets in one system enforces accountability for all business units and creates a culture of cost transparency. Managers get a closer look at their technology spend, which gives them a better understanding of where they are spending (and losing) money.
Basically, tracking assets and services in one place can change everything for companies who used to rely on spreadsheets or manual data entry. Visibility encourages accountability; when costs are visible to the business units they can’t be ignored. They can now be correctly assigned and optimized for considerable savings of time and money.
Centralizing Business Unit Costs
The consolidation of assets in a single repository helps business units be more accountable in several ways:
- It increases visibility by creating an accurate inventory of technology assets and services;
This is the first step to an efficient technology expense management strategy – and accountability – because you need to know what you have and who uses it in order to successfully manage business unit spending.
- It concentrates provider contracts in one place, which allows for renegotiations and better contract offers;
Many organizations continue to pay too much for less than ideal contracts because they don’t have up-to-date information or because they just don’t know what’s going on. Did you know that Gartner estimatesan impressive 20% error rate in telecom invoices? Just imagine what you could do if you saved that money!
- It validates usage, contracts and invoices for payment to suppliers;
Costs are easily calculated for individual business units, which emphasizes accountability once again.
- It facilitates contract and vendor management;
No need for long email exchanges or endless phone calls: all data is collected in a software accessible to all relevant parties. That way, business unit managers can stay on top of things without having to refer back to a spreadsheet or a lengthy document, or spend unnecessary amounts of time on disputes and quotes.
Essentially, accountability becomes a no-brainer when a TEM solution is implemented in an organization. Business units can track costs and allocate them to the right people in a few simple steps directly in the software.
To find out more about how a TEM solution like Cimpl can help you better manage your IT costs and assets towards accurate accountability, contact us today or request a free demo.