Driving Better Business Performance
with Document Management Processes

 

Business documents constitute the lifeblood of an organization. Though often overlooked as red tape, they are vital strategic, financial, and information assets essential to the successful operation of a business. Many organizations, however, confess to their fundamental ineffectiveness in document management. Consider it a warning sign for their corporate health.

 

It is not as though companies do not recognize the importance of managing their information. That is one reason organizations invest so many billions in IT.

 

Ken Neal

It is different, somehow, when it comes to managing documents. They are too often seen as fixed costs of doing business rather than a fertile ground for improving business performance. This is why elevating document process performance is critical, both as an internal practice and an outsourcing strategy, to help organizations reduce costs, increase productivity, lower risk, and build profits.

 

Six advanced document management processes appear inextricably linked to specific high-value business benefits. These processes are:

  1. Document imaging
  2. Enterprise-wide print/copy
  3. Mail and shipping
  4. Records management
  5. Automated/print/mail workflow
  6. Legal discovery

This premise is buttressed by a recent 2008 Océ Business Services survey of 170 executives responsible for document management processes. These included chief administrative officers, mid and upper-level operations managers, and chief information officers. A cross-section of industries was represented, including business services, financial services, insurance, technology, and government.

 

Among respondents, 46 percent work at organizations with annual revenue under $100 million; 22 percent have revenue between $100 million and $1 billion; and 32 percent have revenue of more than $1 billion. Survey results reflect responses from participants at organizations with annual revenue of more than $100 million. Respondents were guaranteed confidentiality.

 

The survey reveals:

  • Organizations need to use an integrated approach to document processes that views documents in terms of their lifecycle. Although 90 percent of senior business executives admit that managing documents better throughout their lifecycle – creation through disposal – would improve business performance, only 12 percent of senior executives rate their organizations as highly effective at it.
  • Organizations need a way to quantifiably measure document performance in the context of an organization’s highest business goals. A slim majority of survey participants (51 percent) indicate their organizations are actually measuring document process performance. At the same time, respondents specified that measurement would be expected to enhance efficiency, reduce cost, and yield a higher return on investment in document process activities.

Document Processes Drive Business Benefits

 

The top-10 findings of the survey forge additional links between sound document process management and defined business benefits.

  1. When it comes to document process management, a majority of executives (64 percent) said improving operational efficiency was their company’s top concern, closely followed by reducing costs. Other chief concerns include improving customer service and enhancing regulatory compliance.
  2. Executives agreed that effective document management advances two pressing business concerns: improving operational efficiency (97 percent) and customer service (94 percent). A significant number of executives also agreed that improvements in these two areas help grow revenue, increase competitive advantage, drive faster time to market, and reduce costs.
  3. Executives agreed that document imaging (paper-to-digital conversion) has a significant impact on the greatest range of top business goals when compared with the other five advanced document management processes.
  4. Automated print/mail workflow drives faster time to market and better customer service.
  5. Records management improves operational efficiency and customer service.
  6. Executives understand the business benefit of managing documents throughout their lifecycle (creation through disposal). Most executives surveyed (90 percent) said they understand that managing documents throughout their lifecycle helps drive business performance.
  7. Many organizations are measuring the performance of their document processes, but there is room for improvement. A slim majority of executives surveyed (51 percent) indicated that their organization is measuring the performance of its document processes. However, a significant number of executives (49 percent) specified that either their company was not measuring its document process performance or they didn’t know if their company had a measurement process in place. This finding suggests a significant opportunity for improvement.
  8. Companies that are measuring document process performance are focusing primarily on service-level performance and user satisfaction. Eighty percent say their company is measuring service-level performance, closely followed by user satisfaction (71 percent).
  9. Companies that are measuring document process performance are reaping important business benefits. The top two business benefits they are gaining are enhanced efficiency of document process activities (49 percent) and reduced cost of document process activities (11 percent), with a significant number of executives (40 percent) indicating that their company is realizing both benefits.
  10. Despite the potential benefits, a significant number of companies are not measuring document process performance due to several challenges. The most common reason cited is that they do not know how to measure (30 percent), closely followed by them not being sure of the business benefits (25 percent).

Top Document Process Mgmt Challenges Survey

 

Real-World Scenarios and Success

 

There is mounting, real-world evidence that backs up the opinions executives expressed in the survey. For example, a finance company dramatically reduced its loan approval cycle time through document imaging. Prior to the imaging program, it took an entire day from the moment a new contract arrived in the mail until the underwriters could begin to work on the loan.

 

In a competitive market where borrowers apply to multiple funders simultaneously, the finance company that approves the loan first usually gets the business. By implementing a document imaging process that makes the contract file available to key players earlier in the approval cycle, the company greatly reduced its loan approval-cycle time and improved its success rate.

 

A healthcare provider automated its data file production, printing, inserting, and mailing of customer explanation of benefits statements. This print/mail workflow solution has enabled the healthcare provider to significantly reduce costs as well as improve quality assurance and compliance with healthcare industry regulatory requirements.

 

A law firm was beset with rising expenses directly related to an ineffective records management program. Dozens of files were misplaced daily, costing thousands of dollars in lost productivity. The solution was a radio frequency identification (RFID) system. An RFID desktop reader was installed in the file room, automating check-in/out. Simply waving a user ID card with the file over the reader eliminated the manual process. The file is linked with the attorney, which creates an audit trail. Among other benefits, the firm achieved a 90-percent reduction in the number of lost files.

 

Moving from Anecdotal to Quantifiable

 

These anecdotes are compelling, but organizations easily can move from the anecdotal to the analytical and thoroughly quantify the business performance gains they are making with document process management.

 

To accomplish this, advanced organizations employ a combination of consulting and technology to align their document processes with their business goals. Then they track their performance against key success indicators down to the print-out, percentage point, cent, or envelope.

 

Multilevel views in performance management software reveal the wheels within wheels of processes and make that information readily accessible across an enterprise. Executives usually see a new, higher level of efficiency, effectiveness, and accountability, helping them benchmark and standardize performance across multiple sites. At the same time, they are holding outsourcers’ feet to the fire. Problems are identified more quickly, and decisions are made based on better information.

 

This business performance management system is like an EKG for document performance. Instead of relying on retrospective end of-the-quarter PowerPoint slides or spreadsheets boasting dubious data, these systems track performance in real time against custom key performance indicators, Six Sigma quality metrics, and service level agreement targets. This capability is especially important as premium companies insist on performance-based contracts with service suppliers.

 

A major telecommunications company, for example, is improving business performance by measuring cost-per-mail piece, cost per employee, cost per square foot, and average mail pieces moved per day. A major chemical company is using business performance management to quantify the safety performance of the employees who ship and receive chemicals and heavy packages.

 

In today’s competitive environment, every organization looks for a competitive edge. Many executives agree that advanced document process management is one way to gain that edge. By taking a document lifecycle management approach combined with performance management and a range of advanced solutions, an organization can significantly enhance its ability to fill critical performance gaps and improve its chances to succeed.

 

Ken Neal can be contacted at kenneth.neal@oce.com.

 

From November - December 2008