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Background
Background: International Accounting
The situation:
Back office operations supporting the global operations were all
in HQ in the United
States. While some countries had financial staff, the majority of
business financial
services were supplied from this HQ group.
Problems:
Processing expense and budgetary costs for this unit were
skyrocketing (over 20% a
year).
The operation is very people intensive and is seen as highly
inefficient (by management,
the workers in the unit are frustrated too, and the “internal
customers” are clearly not
satisfied with the quality and timeliness of the work).
One measure of the problem is that the regions and local
countries vociferously
complained about the charge backs from the unit. Better
services could be gotten locally,
for less cost.
Internal interviews and a questionnaire uncovered backlogs in
work, especially in
answering customer inquiries. Audits showed proof problems,
and records did not match.
There was high turnover and poor training of newer staff. Errors
were increasing, and
adding a quality and compliance staff did not seem to help at
all.
Actions:
When the problem was first raised, the internal OD team
conducted a series of interviews
with management and customers. They suggested that the
employees take a survey to
assess motivation and identify problems from their view. The
survey used was a Job
Diagnostic, derived from the work of Hackman and Oldham on
job enrichment. It
measured the five classic elements: task significance, variety,
and identity (along with
autonomy and feedback).
The survey was mailed to the employees' homes so they would
not feel threatened, but no
announcements at work were made. The return rate was so poor,
several meetings were
held (by management without a consultant) to explain why they
were sent and what they
were hoping to do. Given all the problems and concerns raised
at these meetings, the
internal consulting team was asked to hold team building
sessions. They did, and the
same issues were raised—everything seemed to be back at
square one (which, essentially,
it was). This time, however, the questionnaire was explained
and time at work was given
to fill it out. With 100% participation, the internal staff was
able to see that restructuring
the work would improve and address most of the “complaints”
raised by management
and the workers.
Background
Workflow was mapped and it was discovered that many of the
problems arose from a
“functional” structure: each specialty function doing work and
feeding it into a coding
and routing group. Questions came into the coding and
messaging group (part of routing)
who could only check on the numbers and had no expertise to
understand the real issues.
They would call the supervisors of the functional units who
would then involve the
compliance and quality people to investigate, frequently taking
weeks to get back to the
message center with a definitive answer (usually the problem
was already resolved, but
the customers hated getting the explanation weeks after the
resolution occurred).
The operations were restructured around market/geographic
groups. The specific jobs
were realigned to comply with the tenets of Job Enrichment
with a complete customer
focus rather than a functional expertise bent. This worked well,
but improvements were
still needed. Measurement was instituted to help focus on
service quality and improving
productivity. This worked very well, but personnel problems
were still rampant and
cooperation was low.
Staff levels were decreased, but expenses were not!
The head of finance has asked you, as an external consultant, to
evaluate all that was
done and recommend how to proceed. He is ready to fire
everyone and distribute the
functions to the new region offices just to get rid of his
headaches.

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Background Background International Accounting The.docx

  • 1. Background Background: International Accounting The situation: Back office operations supporting the global operations were all in HQ in the United States. While some countries had financial staff, the majority of business financial services were supplied from this HQ group. Problems: Processing expense and budgetary costs for this unit were skyrocketing (over 20% a year). The operation is very people intensive and is seen as highly inefficient (by management, the workers in the unit are frustrated too, and the “internal customers” are clearly not
  • 2. satisfied with the quality and timeliness of the work). One measure of the problem is that the regions and local countries vociferously complained about the charge backs from the unit. Better services could be gotten locally, for less cost. Internal interviews and a questionnaire uncovered backlogs in work, especially in answering customer inquiries. Audits showed proof problems, and records did not match. There was high turnover and poor training of newer staff. Errors were increasing, and adding a quality and compliance staff did not seem to help at all. Actions: When the problem was first raised, the internal OD team conducted a series of interviews with management and customers. They suggested that the employees take a survey to assess motivation and identify problems from their view. The survey used was a Job
  • 3. Diagnostic, derived from the work of Hackman and Oldham on job enrichment. It measured the five classic elements: task significance, variety, and identity (along with autonomy and feedback). The survey was mailed to the employees' homes so they would not feel threatened, but no announcements at work were made. The return rate was so poor, several meetings were held (by management without a consultant) to explain why they were sent and what they were hoping to do. Given all the problems and concerns raised at these meetings, the internal consulting team was asked to hold team building sessions. They did, and the same issues were raised—everything seemed to be back at square one (which, essentially, it was). This time, however, the questionnaire was explained and time at work was given to fill it out. With 100% participation, the internal staff was able to see that restructuring the work would improve and address most of the “complaints” raised by management
  • 4. and the workers. Background Workflow was mapped and it was discovered that many of the problems arose from a “functional” structure: each specialty function doing work and feeding it into a coding and routing group. Questions came into the coding and messaging group (part of routing) who could only check on the numbers and had no expertise to understand the real issues. They would call the supervisors of the functional units who would then involve the compliance and quality people to investigate, frequently taking weeks to get back to the message center with a definitive answer (usually the problem was already resolved, but the customers hated getting the explanation weeks after the resolution occurred). The operations were restructured around market/geographic groups. The specific jobs were realigned to comply with the tenets of Job Enrichment
  • 5. with a complete customer focus rather than a functional expertise bent. This worked well, but improvements were still needed. Measurement was instituted to help focus on service quality and improving productivity. This worked very well, but personnel problems were still rampant and cooperation was low. Staff levels were decreased, but expenses were not! The head of finance has asked you, as an external consultant, to evaluate all that was done and recommend how to proceed. He is ready to fire everyone and distribute the functions to the new region offices just to get rid of his headaches.