| Source: Accounting Today
L. Gary Boomer, of Boomer Consulting in Manhattan, Kansas, writes that firms must create more output with fewer people, which requires improving productivity of technology, firing less profitable clients, or both.
He provides advice on how to manage the technology function to improve productivity:
- Think of technology as part of your firm’s strategy, not as part of its overhead—in other words, technology should improve firm profits. If you focus only on the costs of technology, you will fail to improve profits.
- Hire professionals to run technology, or outsource it. Don’t try to run it with an accounting professional who knows something about technology.
- Expect to invest about six percent to seven percent of net revenues each year in technology (including labor).
- All personnel in the firm must be trained. Every hour of training in technology should save five hours. Firms with good training programs significantly improve revenues per full-time-equivalent staff member.
- Networks of technology professionals among peer firms will help improve management of the technology function.
- Technology management should be systematized and include:
- A business-oriented department head with skills in leadership, finance, marketing, project management, personnel, and technology. Ideally, this person will be a partner in the firm.
- A documented plan tied to the firm’s strategic plan. Without a plan, firms tend to get caught up in the latest gadgets, rather than focusing on strategic technology projects.
- Firms are beginning to use Internet solutions in lieu of applications on their own servers. This provides more security and process control, which is more important than having control of the applications.
From Accounting Today, February 14, 2006. For the complete article, click on the following link: http://www.webcpa.com/article.cfm?articleid=18841&;pg=acctoday. |
