Overcoming Bias for a Legacy System Creates a $250,000 Overhead Reduction
The growth in time to process bank debt notices showed no signs of slowing, and despite expansion of the accounting department workforce, other vital tasks continued to experience delays. Proper handling of notices required intervention by well-trained, experienced associates creating a bias for maintaining the current system.
To gain a deeper understanding of the activity, took charge of the responsible offshore crew, joined LSTA, a leading financial services trade group, and participated hands-on in processing. Verified the nature of data feeds used by peers in managing similar types of functions. Composed a docket of metrics and KPIs for tracking the efficiency of any alternate method. Compared the capabilities of a variety of adequate vendor programs through a cost-benefit analysis. After the favored program’s selection, conducted testing, integrated the application into the company’s accounting system, and trained all users.
The new resource relieved the quarter-end bottleneck by facilitating straight-through processing of 80% of all notices. The increased efficiency also produced a net $250,000 annual reduction in overhead costs.