Spreadsheet Woes – Limited Features For Easy Adoption of a Control Framework

Like it or not, regulations are here to stay and for a company to comply with them, its IT and financial systems will have to be equipped with a suitable control framework. One common stumbling block to such an implementation is a company?s over-reliance on spreadsheets.

Why is it so difficult to adopt controls for a system that’s reliant on spreadsheets? To understand this, let’s pinpoint some of the strongest, most powerful attributes of these User Developed Applications (UDA).

By nature, spreadsheets are the epitome of simplicity: easy to develop, easily accessible and easily altered. All computers in your workplace will most likely have them and everyone in your organization may be sharing them, making their own versions, and storing them in personal folders.

Sad to say though, these strengths are also control weaknesses and constitute the very reasons why spreadsheets require effective risk management.

Easy to develop. Being easy to develop, most spreadsheet systems are created by non-IT users who have limited knowledge on best control practices. Being constantly under time pressure, these ?developers? may also relegate documentation, security, and data verification to the back burner in favour of coming up with a timely report.

Easy to access. Information in a spreadsheet can be opened by practically anyone within the organization?s network. Who accessed what? And when? If anything goes wrong, it would be difficult to identify the culprit, and the failure to pinpoint responsibility for erroneous data could lead to bigger, more costly mistakes.

Easy to alter. Lastly, if the information is easy to access, then it can also be easily altered, consequently making reports more prone to both accidental errors and fraudulent modifications.

The rise of multimillion dollar scandals due to accidental and intentional spreadsheet errors have prompted regulatory bodies to publish guidelines for mitigating spreadsheet-associated risks. These controls include:

Change control
Version control
Access control
Input
Security and data integrity
Documentation
Development life cycle
Backup and archiving
Logic inspection/Testing
Segregation of duties/roles, and procedures
Analytics

In theory, these controls should be able to bring down risks considerably. However, because of the inherent nature of spreadsheets, such controls are rarely implemented effectively in the real world.

Take for example Security and Data Integrity. One of the most common causes of spreadsheet error is due to ?hardwiring?. This happens when values are inadvertently entered into a formula cell, naturally changing the logic of the spreadsheet.

As a way of control, cell locking can be applied on the formula cells to prevent users without the proper authority from making any changes. However, when reporting deadlines approach drawing spreadsheets to the forefront of data processing, more people are given access rights to the locked cells. Ironically, it is during these crunch times, when errors are most likely to happen.

Because the built-in features of a spreadsheet support none of the controls mentioned above, some companies are tempted to purchase control-enabling programs for spreadsheets just to continue using them for financial reporting. But although these programs can integrate the required controls, you?d still be interacting with the same complex and outdated interface: the spreadsheets.

Thus, these band-aid solutions may not suffice because the root cause of these problems are the spreadsheets themselves.

Learn more about our server application solutions and discover a better way to implement controls.

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Spreadsheet woes – ill equipped for an Agile Business Environment

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Spreadsheet Woes – Limited features for easy adoption of a control framework

Spreadsheet woes – Burden in SOX Compliance and other Regulations

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How to carry out an Operational Review

A mobile workforce management software is key to managing an efficient field workforce.? Managing a staff of people can be tricky in any industry. Try keeping track of employees on shifting jobsites, many whom are paid hourly or temporary workers. The added pressure of ensuring the right workers get to the right sites at the right times, but they also need to track hours, parts used, vehicles and equipment assets.

In a previous post, we defined what is an operational review and why they play a key process in the continual evolution of successful businesses.?

Operational reviews allow the organization members to evaluate their performance, according to the procedures, resources properly, timescales and budgets.

Denizon – Operational Reviews Defined

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In this post, we’ll take a closer look at how to implement an operational review and the steps typically undertaken to help you and your organisation to implement an operational review.

What the steps in a Operational Review Process

There are typically six steps in an operational review that range from preparatory work conducting interviews and collecting documents to the presentation of the final written report.

An audit should be customized to meet a organisatons specific needs, so standard steps can and should only serve as a guideline.? Management and internal and external auditors should adjust the process to address the company’s particular goals and objectives.

Initial Management Meeting

Understanding the problem is the first crucial step of an operational review. This is one of major areas of discussions when the audit team meets with the management, and department heads will be asked to identify any specific areas of concern. Once the problem is identified, it would be easier to come up with workable solutions.

Conduct Interviews

The next step in the evaluation is carried out with experienced teams doing interviews and keeping close observation. Each team essentially watches how employees carry out their responsibilities. This is considered a key part of the process.

When doing the interview, it is also vital that the observing team gains the employees? trust and confidence. Likewise, the staff must be assured that whatever transpires between the team and the employee will be kept confidential. Management must therefore guarantee anonymity to anyone who offers critical information, lest employees withhold vital information and render the data gathered inaccurate.

Systems Review

Employees and management practices will be reviewed by the assessing team according to the standard policies and guidelines of the company. The effectiveness of the controls in place as well as their appropriateness to the current operating conditions will also be evaluated.

Reporting

A documentation of the data gathered and the assessment of the evaluating team, will be submitted to the management after the review process. Flow charts and written narratives of departmental activities are usually part of this report. This is also where observations and recommendations of the team will be presented to the department heads concerned.

Review Results

While the operational review is being conducted, it is important to take into account the vital factors that affect the company: the people, processes, procedures, and strategies. These four factors can determine the company?s progress in the future.

Key Areas of focus in operation reviews

At a minimum an operational review should include the following key ares of assessment

Management Control

Responsibilities, authority, and the scope in which an employee has the freedom to act must be clearly defined and documented. A complete and specific job description for instance, would give the employee a clear perspective on how he acts and functions within the company.

Boundaries should be set not only to benefit the employer but more so the employee as well.

Moral and Ethical Guidelines

Moral and ethical guidelines are just as important to ensure for a smoother employer?employee relationship. Otherwise, personal issues such as work ethics, work attitude and personal values may post problems in the long run if such guidelines are not drawn properly before relationships are established.

Processes and procedures

Evaluating processes is only beneficial if the company itself updates its processes and procedural manuals regularly, or at least when needed. Such protocols may need revision and some steps may be obsolete already. Improving a company?s processes and procedures doesn’t always entail cost. In fact, improvised procedures may even be cost-effective and could make the processes more manageable.

Communication and reporting standards

Gaps in communication could result in serious lapses in internal controls, putting the company and/or its assets at risk. This is where the importance of timely and clear communication comes in. Likewise, reports must be useful, and the flow of information and how it is processed must keep pace with the company?s growth.

Information technology (IT) and security controls can also be included under the communication clause. Proper IT security policies must be in place, state-of-the-art protection techniques employed, and everything be documented, periodically updated, and continually monitored.

Strategic planning and tactics

No company can ever be complete without its strategies. It would unwise for any organization to proceed without first knowing where it stands and what direction it wants to take. Strategic planning draws such a map. It must be aligned to the mission and vision of the company, and should also coincide with the organizational goals set. Strategic planning deals with these three key questions:

What do we do now
Whom do we do it for?
How can we overcome competition

Without clear strategic direction, expectations would likely differ between ownership and management.

Contingency planning, testing and recovery

Contingency plans must be up-to-date, and are essential to the organization. If one course of action fails, the company should have plan B, C and so on. In addition, an organization should be prepared to respond to interference’s.

This includes establishing a formal process to review transactions processing during both disruption and recovery.

Presentation of Report

Based on your objectives and our findings, we will develop detailed recommendations to improve your company?s performance and productivity. Our written report will include a list of both short-term and long-term projected improvements and courses of action, to be mutually agreed upon by both parties.

To ensure the achievement of the improvements we outlined, our team will also assist in the implementation of these modifications.

The plan has three levels of recommendations: one for executives, another for management, and a third one for staff.

The executive summary concentrates on your company?s strengths, weaknesses, opportunities and threats to its entirety. It includes recommendations for any needed changes in policy or governance.

The management plan is based on employee feedback and includes areas of immediate improvement as well as identification of potential problem areas. Concerns from the bottom level management can now be forwarded to the top level management in formal writing. Better working relationships may evolve from this, thereby setting the work environment for a higher productivity ratio.

Lastly, the staff report deals with topics like charting the hierarchy of the organization, and discussing in detail specific control objectives that are critical to the company?s mission. Part of our goal is to encourage personnel to pay close attentions to such changes, if any, as these efforts are essential if they want to bring about both organizational and personal success.

If you would like to further discuss how our operational review services can benefit your company, please feel free to contact us at your convenience to schedule an initial consultation. We?ll be more than happy to assist you.

More Operational Review Blogs

Carrying out an Operational Review

Operational Reviews

Operational Efficiency Initiatives

Operational Review Defined

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5 Ways To Grow Your Business | How Field Service Management Software Helps

Building up any business is already hard, more so when it involves providing field services.

A field service business owner has to manage the usual tasks, like scheduling jobs efficiently or inventory checks, and you have to do it while your employees are scattered about on various locations.

It’s the reason FieldElite was created, to provide companies with a much better way to manage and monitor their field workers.

Aside from effective management for your workforce on the move, field service management software can also help your business grow.

5 Ways Using Field Service Management Software Grows Your Business

1. Management Integration

You replace manual field service processes. If your business also uses other management apps, like CRM, payroll, industry-specific software, etc., make sure to integrate them with your chosen field service management software.?

Make those software work side-by-side with your field service management app to achieve streamlined business management.

Integration also removes the possibility of duplicate input on the regular system used and your field service management software, maximising your efficiency and business growth.

2. Improved Tracking

Utilising a field service management software gives you better tracking of every aspect of your field service business.

Track your inventory numbers in real-time ? know exactly how much stock is on hand for parts, and when it’s time to order more
Constant updates on Key Performance Indicators ? ensure your business is running smoothly
First-time fix rates tracking ? avoid wrong rate application
Monitor your technician?s performance ? ensuring quality work, in turn, profit.

Grow your business by having improved tracking on meaningful data and analytics produced from your field service management software.

3. Cost Cutting

Cutting costs can improve your bottom line and a lot of businesses turn to laying off technicians to cut costs. With a field service management software, there?s no need to go this route.

You cut costs through no manual processes needing to be completed. No need to hire back-office staff to field service calls or produce paperwork orders.

Your field service software should have all your automated needs met for efficient field job management.

An example of cost-cutting using field service app:

Track how much your technicians drive and find alternate routes for them to take.

Reduce gas expenses
Reduce repair bills for the truck
Finding better alternate routes can give more time to get to more jobs
Increased efficiency for the field technician

4.? Mobile Adaptability

Field service companies are focusing on mobility to grow their business. With a field service management software, technicians have on hand the tools and information needed to complete their job.

Field technicians can utilise the following field service software features:

Limit how much time they spend completing administrative work with the automated work-order management
Complete checklists on their mobile device and follow step-by-step instructions
Check service history
Close job orders/calls, collect signatures and start the invoice process

With a mobile app, technicians can complete a call faster, increasing the number of job order scheduled each day, giving additional revenue and that helps to grow your business.

5. Automation

What good is a field service management software without automated features??

Automation, in any industry, is an important factor in managing and growing your business.

Here are some examples of automation features and tools that your software needs in field service:

Create and convert quotations into work orders
Schedule/Reschedule jobs
Accept jobs in the field
Convert jobs into invoices
Preventative maintenance service
Customer updates
Automated job reports

Business Growth with your Field Service Management Software

Field service management software is growing businesses through automation, tracking and workflow management.

Your operation can run smarter and more efficiently, all while empowering your field technicians to do their job smoothly.

If you haven’t turned to a field service management software yet, you’re missing out on chances to grow your business.

Check out FieldElite to help grow your field service business today!

Telemetry and the Survival of the Human Species

Without moisture, plants die. Without fodder, the animal food chain collapses. This is why climate change is the greatest threat humankind faces. Crop management needs timely information regarding ambient conditions, and also in the soil itself. In dry areas, online knowledge of trends in rainfall, sunlight, wind speed, leaf moisture, air temperature, relative humidity and solar radiation are indicators of soil stress that can be deadly for plants, and everything that relies on them.

As climate change bites, the need to find solutions accelerates. Drones swoop across to monitor ambient conditions, while probes sunk into plants and the earth in which they grow transmit information to big data repositories for feedback to administrators. In Australia, a remarkable cattle farmer is applying the same approach to his herds.

Nuffield scholar Rob Cook has always been on the edgy side of things. He lost his mobility in a helicopter crash in 2008 patrolling farmland but that has not deterred him. If anything, it has freed his mind to explore the potential that telemetry offers farmers in Australia. He shared this potential with the young beef producers in Roma Australia recently, and here is a summary what he said.

Being wheelchair bound he had to shift from herding with cattle dogs to a more scientific approach. He bought a farm 230 miles / 370 kilometres inland from Brisbane in a warm, temperate climate with significant rainfall even in the driest months. He uses observant software that reports on critical issues like water levels indicating animal consumption, and supplementary water flows from a central irrigation channel.

He also monitors fodder sources for dryer months, and moisture levels in food stocks. Rob is committed to making every blade of grass count. ?We even have the ability to take a photo of the cattle when they are taking a drink of water,? he explains, and that provides valuable information regarding tick and fly infestation and overall condition.

None of this would be possible for Rob Cook without telemetry, which is the process of collecting data at remote points and transmitting it to receiving equipment for analysis. Independent farmers do not have equipment to fund these analytic resources on their own, and use big data resources in a cloud to obtain reports. ecoVaro is on top of current trends. Please speak to us when you need independent advice.