Status Quo Kills Small Business Communication Management

TEM – Management and Reporting Saving Small Business?

Management and Reporting as part of a telecom expense management solution is one of the most critical components to successful management. The reasons are simple and obvious for larger business; however, small business often feels it is outside of their realm of needs. This is a critical mistake! Lets discuss why management and reporting can curb the biggest killer of this expense…"Status Quo".

 

This is part 2 of a 3 part series on the benefit of telecom expense management for small businesses. Click the previous video on how a cost audit benefits small business to see part 1.

Does your business suffer from "status quo" – its not broken don’t fix it syndrome? We’d love to hear from you.

 

 

[DDET Transcription of Video – Click to Expand] Hello Everyone, George Gill here, GILL Technologies. Welcome back to video two of our three part series on telecom expense management for small business. Thank you for joining me! Today were going to be talking about management and reporting in video one we spoke a little bit about the cost audit and the benefit of that formal process for small businesses generating 20, 30, 40% savings in their monthly communication costs. One of the questions I did receive from that video is what does telecom encompass so before we go in today’s topic I quickly want to basically cover, what we’re speaking of when we speak of telecom. Telecom should really be explained as telecommunications in other words, the company’s total communication structure that can encompass everything from local lines, long-distance, data lines, Internet, cell phones, conferencing, wireless products anything under that umbrella really falls under telecom expense management. Now at GILL Technologies we really focus on cell phones and mobility costs simply because that’s the cost which is continuously escalating. There’s lots of reasons for that but you know for this video were not going to talk about why costs are going up, just most businesses understand that that’s where the bulk of the costs are and where they’re escalating over time. Okay so management and reporting. If I’m speaking to a midsize or larger organization with a fleet of cell phones of say 100, 200, 300 cell phones, really easy to say why management reporting is critical to that business everything from cost segregation to tax breakout two departments and account, accounting cost centers to manager approvals to location-based data. There’s a ton of reasons to have good management and reporting in place as part of your management policy or your management process. For small businesses it’s not as clearly as defined really because you don’t have as much volume going through at any given time; however, there are really three key areas or key reasons why it’s important to employ some sort of management and reporting system into managing your telecom expenses. Now the first reason is really resources and we talked a little bit about this in video one but essentially if you have say for example even 15 cell phones and you have that bill coming in monthly and there is say 10 pages of detail to each cell phone, it’s really quick for that bill to actually be 150, 200 pages thick, so now we have this thick bill that somebody in the organization has to take a look at and review in detail to really maximize savings to really keep control of the cost as well to make sure that the assets are being used as they should be so that nobody’s breaking any policies in the organization as well. So who is going to do that? Is it accounting is operations, is at my IT guy? Who’s gonna wear that second or third or fourth hat and manage that process when it’s really a very time-consuming process to go through that much detail? Unfortunately for most small businesses nobody does, until there is an extreme case or a spike in the bill, nobody has the time to put that focus on. With a management and reporting system in place that information is available quickly and easily with the click of a button you can drill in to see if there’s an increase in cost, see if there’s an increase or decrease in usage and deal with that in a very short fashion as opposed to drilling through all these pages of information. So by having a software in place you’re able to tap into that information very quickly. The second reason to employ a good management reporting solution is the skill set. Now it’s not that nobody in your organization can learn the process of auditing and managing communications, it really comes down to the fact that it’s usually a part-time job especially for small business. So if you’re responsible in your organization to be looking at those costs a monthly basis there’s also a huge component of having to go out every single month and learn what’s going on in the industry, what new plans are available, what new features, what new capabilities? Is there a way to encompass and bundle new features in, to reduce the costs? And that’s where a huge amount of time and learning curve every single month has to occur. So because again that’s not really realistic for a small business to spend that kind of time on it, a management and reporting system really solves that problem for you by highlighting the details that you should be focusing on and making those recommendations that you can tap into very quickly and easy to keep those costs in control. OK the final point in what I feel is the biggest devil in the details if you will. The biggest reason why a small business should employ some sort of management and reporting system for their telecommunications expenses and that is “status quo” Now what do I mean by “status quo”? I mean your cell phone worked yesterday, it’s gonna work today and it may work tomorrow. You’re going to get a bill this month, you’ll get a bill next month as long as it’s working it’s not broken just keep using it and that’s probably the biggest challenge for small businesses because it’s not driving your attention even though it should be. It’s a major component of cost to their overall expenses on their income statement yet it’s not getting the attention that it needs because it works and if it works you know I’d rather focus on new business coming in and I understand that and I understand the whole of limited resources and you have to put those resources were your business is growing and that’s really why it’s really critical that you need a system in place that points these details out to you so that it’s not a work job it’s not a make-work project that every single month somebody’s got to go in and check out what’s going on as far as expenses and keep those tight. Having a system in place does that for you on an ongoing basis and it keeps your organization in the very top of the best of the best companies because you always conscientious of your costs and your expenses. So even though your cell phones and your telephone lines are working every single month you’re leaving money on the table in fact you’re doing worse, you’re giving money away when you really shouldn’t be and there is ways and solutions that you can solve that. So status quo is probably the biggest killer to this expense category for small businesses. Assuming you’re okay just because it works, does not mean it’s working as good as it should and by employing a management and reporting system you can knip that in the butt real quick. I’m George Gill from GILL Technologies, for more tips and tricks please go to our site at www.gill-technologies.com.[/DDET]

Comments

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