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Old 15th November 2006, 09:00 AM
Madfox's Avatar
Madfox

 
 
Total Posts: 105
Re: Should the billing process be part of ISO 9001:2008?

Yes, and no...
...and "billing" goes both ways, getting paid and paying suppliers.

I don't believe in getting into the nitty-gritty financials, however management should be aware of:
a) billing (inbound/outbound) issues
b) billing performance (most are keenly aware of avg. outstanding A/R, but few regarding avg. outstanding A/P)

A close friend (with an NYSE-listed org) lost a HUGE account simply because their client's CFO got fed up with trying to get a correct bill.

When I'm asked about "process engineering" here's my example (true story, been to the company, know the salesperson):
A printing company had a client who had been with them for over 12 years. The client had started as a two-person company and now accounted for approx. 8% of the printer's revenue, and about 12% of the account manager's annual income (commission-based).

The client's founder/president still maintained the "up close and personal" relationship with the printer, literally paying the bills with his own business credit card. Well, he gets a call from someone in A/R who, very coldly, simply states "We're not accepting credit cards anymore, we will be sending you a credit reference form to establish a line of credit....blah, blah, blah."

What irked the client was being treated so rudely, and he wrote the printer's president notifying them that their relationship was over. The client's account manager and the sales manager had no idea the accounting dept. was implementing this change regarding credit card usage. The sales person had to be peeled off the ceiling!

A silo-oriented organization: "Congratulations to our accounting dept. for decreasing costs incurred from credit card transactions!" "Hey sales, what's your problem, your numbers are way off!"
Would this have happened in a process-oriented organization?
Thank You to Madfox for your informative Post and/or Attachment!

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