Chapter 8 - Case Study Two: Accounts System Improvement

Abstract

This case study was done in a medium-sized IT consultancy working across the UK and Europe. The issue with the accounting business process was that the reports lagged behind the true financial situation. The management team developed their own ad hoc systems and spreadsheets to assess their departmental profit and loss status. The system was thought to contain errors: missing records, incorrect filing, incorrect data entry, and issues with accounts reconciliation. The improvement process involved the robust collection and analysis of data to identify the root cause of issues, which could then be appropriately solved. The improvement project demonstrated to the management team the importance of identifying the real root causes of an issue and not making a leap to the most obvious solutions. The root cause was the way that the accounts data flowed into and out of the accounts process and this was only identified through robust data collection and analysis. The project was clearly a success and delivered all tangible and intangible benefits. Fundamental to this success was the change in behavior at every level in the organization. No matter how small a project, there is value in using appropriate project management tools and techniques to structure delivery, manage uncertainty, and deliver benefits.