How to Ensure Effective AP Automation Transformation

How to Ensure Effective AP Automation Transformation

By CFO Tech Outlook | Friday, February 22, 2019

Accounts PayableOrganizations face a lot of challenges while transitioning to accounts payable (AP) automation. The biggest hurdle is to get the buy-in across the organization. A research by Mckinsey and Co., states that 70 percent of all transformations fail.

Enterprises should ensure that they quantify, qualify and explain the process of transition to their entire workforce for a smooth transition to AP automation. Total Quality Management (TQM) can be an ideal approach to achieve the desired result as it provides the enterprises with an ability to achieve long-term success through customer satisfaction.

In the TQM approach, all members of a company participate to enhance the quality of the processes, products, and services of their respective departments. If the AP department of a company fails to pay its vendors on time, it can hamper the company’s ability to serve its customers. To integrate TQM approach in the AP department, enterprises should ensure that the process is smooth in order to keep the performance consistent during the transition. Here are a few ways to ensure a smooth automation transition:

Eliminate Fear of Job Loss: There is a growing misconception that Automation can result in job loss. Rather, an effective automation transition can result in improved job satisfaction through efficiency improvements. It can present new opportunities for employees to add more value to their work through analysis and problem-solving features.

Make the Staff Feel Heard: enterprises should ask the employees for inputs during the process of Accounts Payable transition. Companies should also encourage personal ownership through inclusion, and request feedback after the transition phase to create a continual dialogue.

Garner Excitement for New Technology: Automation allows companies to improve their workflow, reduce administrative time waste, enabling employees to focus on their primary job function rather than spending time chasing around approvers and missing information. Enterprises should make their employees understand the benefits of automation to ensure a smooth transition. An efficient articulation of the potential benefits of AP automation can make a compelling case for the technology.

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