Spreading Responsibility for Information and its integrity
Like you, I started in the days of 1st generation computers, paper tape and Hollerith cards, and can still recall the office admin days before any of the information technology. Back then the operational staff and management did mostly know and comprehend the underlying calculations, processes and controls undertaken, and so many people did know these basic underlying activities that the organisation had strength in numbers and the absence of an individual did not inhibit their ability to cope with everyday situations. How many organisations know today what processes and calculations the computer systems are undertaking internally for them. How many places cannot make simple changes or innovations because their computer system does not support their desired adjustments, or because they are not confident about the impact or consequences, and choose to stay safe and leave well alone?
Over the years many of these people have felt "locked out" of a comparable comprehension and understanding as more and more aspects have been partially or wholly undertaken. By working to try and ensure that this gap becomes filled by greater numbers of individuals, each knowing where their computing activities starts and stops, exactly what calculations and processes their system does and does not do on their behalf, then the issues you raise will arise less often as inappropriate information and processes can be culled and people like yourself can begin to feel fully in control of their own datasets again, just like they used to. This aspect of computerisation has been woefully neglected by both Operational Management and the Technical Computer Staff, and steps need to be taken to ensure that operational staff are put back in control again, (through their management teams of course),
IT's the Information and Processes, Not the Technology.
The digital expansion and change described in the article is highly likely to happen as a result of utilisation of new technologies, BUT
in consequence, the organisations that will succeed are those that USE the digital information to good effect and who manage their new business activities and processes effectively.
It is reasonable, sensible and sound business sense that The Accountants are managing these aspects on behalf of their organisations, this is something that they have always done, with or without all the new technologies.
Managing the technology itself is a different skill set, best left to the techies, but managing the potential and consequences of using new technology is the job of senior management of all disciplines. Over the years too many have taken a back seat thinking Computer Specialists or even the actual computers undertake this task, but they don't. The absense of this type of management is visible all around us, and is the real reason why so many people dislike and deride computers and systems.
We all need to start appreciating that the Information and the Processes are a totally distinct aspect, separate from technology itself, and ignore the fact at your peril. Sadly management education in this area is sadly lacking, so no wonder so few people appreciate what to do or how to do it.
Spreadsheets are intended for simple, low volume applications, and, as explained by several authors here, are transparent and straightforward to accounting personnell and others.
They are not intended for high volume, complex data processing and applications where the ability to audit and verify is compromised.
They are not intended as corporate data repositories or for use to ease information sharing and maintenance amongst multiple users, -- but that has not stopped them being used and applied in this way by the unwary.
Databases and properly controlled software systems mitigate risks in high volume, multi-user distributed scenarios. These can lack transparency, but shouldn't. If you use an application you really need to know how it is working, what calculations it does, how it decides on the actions it takes. You don't need to know the technicalities, but you should know the underlying business process handling. If your supplier cannot tell you this and if the process is not doing what you wish and need then you should not be buying the solution.
My primary expertise is in software development, for those who do not really understand the software business this may help.
Basically the key choice being made by you, the clients selecting a solution for their practice, is a choice between buying a package that has been written to cope with most situations and organisations like yours, (so that the software house can sell the single package to a larger potential client list), or buying a tailored, bespoke solution written specifically for YOUR exact needs.
The implications are:
1) The package may not exactly meet your needs and how you operate, you will almost certainly have to accept some compromises and some things that don't quite meet your needs.
2) The package will almost certainly be much more complex than you really need because it will include all sorts of things that others may need but you actually don't need. (To make it suitable for a larger number of potential clients.)
3) The package may well be a lower cost than a bespoke solution because of economies of scale. (but if your needs are small and simple a complicated package may ultimately cost you more.)
4) The package may well be a lower risk option, the two biggest risks in a bespoke solution being:
i) The skill of the client in defining exactly what they want their software to undertake; (ie what processes and what process controls do they need from a system, what reports and printouts do they wish to produce, how and when do they want to archive records, etc.)
ii) The skill, expertise and professionalism of the organisation producing the bespoke solution on your behalf. (There are many developers without the skill and professional expertise to complete bespoke systems for you, though many people believe and claim that they can.)
5) The package can inhibit your ability to innovate and be different to your competitors. If you are all using the same package you all have the same limitations and same potential benefits. This restricts how you can operate in ways to be distinctive and unique.
6) The bespoke solution should meet your needs more effectively, and should be able to grow and adapt as your business grows and adapts. (subject to your having a quality and reliable supplier.) You can reduce the cost of the solution by only buying what you need when you need it and you and the staff can grow and learn as the system grows and becomes more complex.
7) Many clients choose to buy packages because they think this solution is instant. This is a myth, in reality you really need to define and understand your needs and your processes thoroughly before selecting any solution. A high number of clients buying packages have not undertaken this step and consequently frequently select inappropriate solutions for their business. Make a checklist and know what you absolutely must have, what is desirable and what is not needed at all. This will also help you decide which of the available packages is right for you and which is not suitable.
8) With bespoke solutions you can shape and develop specific client services and delivery mechanisms that set you apart from the competition. You can also link in and integrate with some of your other software packages and systems if desired.
Hope this list provides clarification and insight into the software selection process for you all. (For over twenty years my role was to help and advise the management of the Company where I worked undertake the process of choosing and using software solutions, so my advice had to be objective and impartial.)
The system told me that I had used the wrong password when I tried twice on Thursday evening to login without luck. Tried again on Friday and a few times since without any problems, I do not believe that I mis-keyed twice on Thursday, I am an experienced user of computing systems.
Any basic rate tax payers who have been fined the £100 for non submission have every right to be very peeved by this benefit for higher rate tax payers.
I know of one individual who has been unable to resume his career as an international salesman after his wife died from cancer whilst his children still needed someone to be around at home. He failed to submit tax returns because he thought none were due when he did not reach the taxable income level, I know he was fined for not submitting when he already struggled financially. Is this fair?
Mouchel meltdown - real need is appropriate management practices
There is a widespread underlying issue here, one that my company has worked on extensively.
Spreadsheets are widely used by organisations of all shapes and sizes, they help solve many issues and help people to organise many things.
but they often solve one problem and create another elsewhere, ....
Spreadsheets are often used to manage key corporate information, as in this quoted Mouchel case, but they are seldom managed and controlled in ways that reflect that they are a part of key corporate information systems.
A very high percentage of companies use spreadsheets in an extremely high risk manner and are as exposed as this Company was.
Their spreadsheets are used daily but rarely independently checked, they are not audited, they are not controlled, in many cases the senior management are not even aware of their existence! Are back ups taken? Do third parties know how they function or where they are filed?
We have prepared training courses and workshops to make both operational and executive managers more aware of these kind of hidden risks in their management practices. All management practices need to be fit for purpose, yet many organisations have not adjusted their management controls and practices to reflect their modern use of information technologies like spreadsheets.
My answers
Spreading Responsibility for Information and its integrity
Like you, I started in the days of 1st generation computers, paper tape and Hollerith cards, and can still recall the office admin days before any of the information technology. Back then the operational staff and management did mostly know and comprehend the underlying calculations, processes and controls undertaken, and so many people did know these basic underlying activities that the organisation had strength in numbers and the absence of an individual did not inhibit their ability to cope with everyday situations. How many organisations know today what processes and calculations the computer systems are undertaking internally for them. How many places cannot make simple changes or innovations because their computer system does not support their desired adjustments, or because they are not confident about the impact or consequences, and choose to stay safe and leave well alone?
Over the years many of these people have felt "locked out" of a comparable comprehension and understanding as more and more aspects have been partially or wholly undertaken. By working to try and ensure that this gap becomes filled by greater numbers of individuals, each knowing where their computing activities starts and stops, exactly what calculations and processes their system does and does not do on their behalf, then the issues you raise will arise less often as inappropriate information and processes can be culled and people like yourself can begin to feel fully in control of their own datasets again, just like they used to. This aspect of computerisation has been woefully neglected by both Operational Management and the Technical Computer Staff, and steps need to be taken to ensure that operational staff are put back in control again, (through their management teams of course),
IT's the Information and Processes, Not the Technology.
The digital expansion and change described in the article is highly likely to happen as a result of utilisation of new technologies, BUT
in consequence, the organisations that will succeed are those that USE the digital information to good effect and who manage their new business activities and processes effectively.
It is reasonable, sensible and sound business sense that The Accountants are managing these aspects on behalf of their organisations, this is something that they have always done, with or without all the new technologies.
Managing the technology itself is a different skill set, best left to the techies, but managing the potential and consequences of using new technology is the job of senior management of all disciplines. Over the years too many have taken a back seat thinking Computer Specialists or even the actual computers undertake this task, but they don't. The absense of this type of management is visible all around us, and is the real reason why so many people dislike and deride computers and systems.
We all need to start appreciating that the Information and the Processes are a totally distinct aspect, separate from technology itself, and ignore the fact at your peril. Sadly management education in this area is sadly lacking, so no wonder so few people appreciate what to do or how to do it.
Spreadsheets are intended for simple, low volume applications, and, as explained by several authors here, are transparent and straightforward to accounting personnell and others.
They are not intended for high volume, complex data processing and applications where the ability to audit and verify is compromised.
They are not intended as corporate data repositories or for use to ease information sharing and maintenance amongst multiple users, -- but that has not stopped them being used and applied in this way by the unwary.
Databases and properly controlled software systems mitigate risks in high volume, multi-user distributed scenarios. These can lack transparency, but shouldn't. If you use an application you really need to know how it is working, what calculations it does, how it decides on the actions it takes. You don't need to know the technicalities, but you should know the underlying business process handling. If your supplier cannot tell you this and if the process is not doing what you wish and need then you should not be buying the solution.
Software - Pros and cons
My primary expertise is in software development, for those who do not really understand the software business this may help.
Basically the key choice being made by you, the clients selecting a solution for their practice, is a choice between buying a package that has been written to cope with most situations and organisations like yours, (so that the software house can sell the single package to a larger potential client list), or buying a tailored, bespoke solution written specifically for YOUR exact needs.
The implications are:
1) The package may not exactly meet your needs and how you operate, you will almost certainly have to accept some compromises and some things that don't quite meet your needs.
2) The package will almost certainly be much more complex than you really need because it will include all sorts of things that others may need but you actually don't need. (To make it suitable for a larger number of potential clients.)
3) The package may well be a lower cost than a bespoke solution because of economies of scale. (but if your needs are small and simple a complicated package may ultimately cost you more.)
4) The package may well be a lower risk option, the two biggest risks in a bespoke solution being:
i) The skill of the client in defining exactly what they want their software to undertake; (ie what processes and what process controls do they need from a system, what reports and printouts do they wish to produce, how and when do they want to archive records, etc.)
ii) The skill, expertise and professionalism of the organisation producing the bespoke solution on your behalf. (There are many developers without the skill and professional expertise to complete bespoke systems for you, though many people believe and claim that they can.)
5) The package can inhibit your ability to innovate and be different to your competitors. If you are all using the same package you all have the same limitations and same potential benefits. This restricts how you can operate in ways to be distinctive and unique.
6) The bespoke solution should meet your needs more effectively, and should be able to grow and adapt as your business grows and adapts. (subject to your having a quality and reliable supplier.) You can reduce the cost of the solution by only buying what you need when you need it and you and the staff can grow and learn as the system grows and becomes more complex.
7) Many clients choose to buy packages because they think this solution is instant. This is a myth, in reality you really need to define and understand your needs and your processes thoroughly before selecting any solution. A high number of clients buying packages have not undertaken this step and consequently frequently select inappropriate solutions for their business. Make a checklist and know what you absolutely must have, what is desirable and what is not needed at all. This will also help you decide which of the available packages is right for you and which is not suitable.
8) With bespoke solutions you can shape and develop specific client services and delivery mechanisms that set you apart from the competition. You can also link in and integrate with some of your other software packages and systems if desired.
Hope this list provides clarification and insight into the software selection process for you all. (For over twenty years my role was to help and advise the management of the Company where I worked undertake the process of choosing and using software solutions, so my advice had to be objective and impartial.)
failure to logon
The system told me that I had used the wrong password when I tried twice on Thursday evening to login without luck. Tried again on Friday and a few times since without any problems, I do not believe that I mis-keyed twice on Thursday, I am an experienced user of computing systems.
Unfair on others who cannot afford expert help
Any basic rate tax payers who have been fined the £100 for non submission have every right to be very peeved by this benefit for higher rate tax payers.
I know of one individual who has been unable to resume his career as an international salesman after his wife died from cancer whilst his children still needed someone to be around at home. He failed to submit tax returns because he thought none were due when he did not reach the taxable income level, I know he was fined for not submitting when he already struggled financially. Is this fair?
Mouchel meltdown - real need is appropriate management practices
There is a widespread underlying issue here, one that my company has worked on extensively.
Spreadsheets are widely used by organisations of all shapes and sizes, they help solve many issues and help people to organise many things.
but they often solve one problem and create another elsewhere, ....
Spreadsheets are often used to manage key corporate information, as in this quoted Mouchel case, but they are seldom managed and controlled in ways that reflect that they are a part of key corporate information systems.
A very high percentage of companies use spreadsheets in an extremely high risk manner and are as exposed as this Company was.
Their spreadsheets are used daily but rarely independently checked, they are not audited, they are not controlled, in many cases the senior management are not even aware of their existence! Are back ups taken? Do third parties know how they function or where they are filed?
We have prepared training courses and workshops to make both operational and executive managers more aware of these kind of hidden risks in their management practices. All management practices need to be fit for purpose, yet many organisations have not adjusted their management controls and practices to reflect their modern use of information technologies like spreadsheets.