Back office key to delivering strategy
The back office is key to delivering strategy. Operational excellence is a deliberate state created by people, processes and systems aligned to create value. It doesn’t happen by accident. We know that making back office functions work better is more effective than wholesale cuts. Optimising back office operations is strategically important. In fact, a well-designed back office can drive innovation and strategy
Evidence backs strategic importance of the back office
Evidence shows that optimising back office operations is strategically important. Over the past few weeks, I have been reviewing top-performing organisations around the world. They all have well integrated and purposeful back offices that drive high performance and link strongly to operations. From Saudi Aramco to Ajman Police and Tuatahi First Fibre, work in the back office has seen frontline staff be more effective, safer and provide more value to customers.
Improving the back office
We can all improve the back office to make the frontline more effective. Examples from my own consulting experience include:
- Cutting payment processing times from 4 weeks to 2 days in a Finance centre
- Merging two FMIS systems so finances could be run by one team instead of two
- Replacing hundreds of spreadsheets with one operations system to improve compliance, reduced risk, cut processing time and let the organisation scale
- Implementing a property accounting system that replaced manual processes, models and spreadsheets with common processes, business rules and automation
- Integrating 3 systems to reduce duplication of data and rework to make it easier to serve customers and reduce waiting times
- Reviewing property and facilities management systems to provide a clearer view of underutilised assets and to free up capital
- Integrating data sources, creating data standards and transforming processes across a sector nationally to improve transparency and cost control
Deliberate and consistent action delivers strategy
The back office is key to delivering strategy because strategy is not buzzwords and pretty diagrams. It is a set of choices to create value through deliberate and consistent action. Delivering strategy means enabling deliberate and consistent action through effective use of people, processes and systems to achieve your aims.
Does your back office drive innovation and strategy? It could do. Get in touch.
Phil Guerin, Consultant/Director, Hague Consulting Ltd. © Hague Consulting Ltd 2024. If you like this content, subscribe to our blog – it’s free!
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