Removing Swivel Chair Processes from Businesses
Written By Daryl Wenman-Bateson
Businesses have changed vastly over the last twenty years and processes have not always been adapted at the same time. Many businesses double enter data, also known as ‘swivel-chair processing’. This is the habit of entering data into one system, swivelling your chair around and then entering it into another system, possibly more than once. Reducing and then removing this can streamline processes, impact overheads, improving profits.
I cannot remember a business I have worked in where double entry processing was not happening. This can be for many reasons, but these are some of the common causes:
Old businesses practices which were appropriate before eCommerce systems have continued alongside newer processes, these multiple spreadsheet systems or even paper files are still quite common.
Not all new systems are a good fit for a business. Often systems are not linked appropriately, data is entered into one system and re-keyed as there is no other way of reaching a siloed system.
Following on from the last point, old software and systems within businesses may be causing double entry. These systems are often known to be of a poor standard for a modern company, however, staff trust the systems, they are trained to use the systems and work with any quirks, it can be perceived as expensive to replace the systems.
ECommerce companies sometimes struggle if they are too successful. It is not unusual for a business to have great success, but the systems are not considered and expanded. In a traditional business, it is more obvious that more staff are required to maintain the workload. In a business built on business systems and processes, it is less obvious when the systems need updating.
New systems are often installed but do not connect properly to the existing systems, software is not compatible, product numbers do not link across systems. If a company merges with another company the systems are rarely merged successfully, resulting in workaround to ensure the data is across all systems.
Now I understand that as it is commonplace, the question must be is it worth eliminating swivel chair processing?
Software is quicker at these tasks than humans. If it is possible to automate tasks during the day or overnight, it will always take place and the data will be transferred more accurately.
Human error is a fact with data, data entry is not an interesting task, our minds wander and errors will be introduced into the data. These errors can be costly to a business, from simple examples such as sending marketing to the same client multiple times, not a big issue but the cost will add up. Financial figures which are keyed incorrectly can have huge problems, which figure is correct? Is the incorrect figure masking a potential problem or a success? Automation eliminates these issues as it is quicker and far more accurate.
Automated processes allow a business to reduce their staff headcount as less staff are required to enter data into systems. This may allow for staff to work in different ways, managing the growth in business and overseeing the systems. It will also reduce operational costs as there are few people to pay and fewer systems to maintain.
Gaining a competitive edge is particularly important in this climate. A business that knows its stock levels, delivery times for customers and is up to date with their financials will win over the lesser organised companies. Streamlining business processes will help every business whether they double their business or more, the efficiencies will continue to grow with the business.
I believe it is necessary to eliminate swivel chair processing to run a successful business. It will require investment, but this money should be returned in the efficiencies made from simpler processes and reduced costs.
Improvements do not have to be all or nothing, incremental changes to the processes will reap rewards. I would advise starting with easy wins, these low hanging fruits may not cost so much to rectify but will prove to project sponsors that it is a worthwhile exercise. Each small improvement will be returned with an improvement in operational costs and decision-makers’ confidence will grow when using the data available.
During these early stages develop a plan, is it more beneficial to work with the systems in place, correcting errors and linking the systems appropriately? Or has the system gone beyond its use and would the business benefit from a new replacement? All business users must be on board at this time to ensure everyone has input and knows what will take place in the future.
So, I believe that removing swivel chair entry from a business can have a huge economic benefit to the business. It will provide a technical infrastructure which will see the business moving into the future confident that they can handle business growth. It will provide accurate data which decision-makers can use instantly and know to be truthful. Quick accurate decisions will help all business to gain a competitive edge during these difficult economic times.