Elaborating and implementing administrative procedures: A Success Story
Objective
The main objective of this project was to create a solid corporate structure. Therefore, with the capacity to provide effective backing and support in the back-office area of a large group of affiliated or represented companies. Consequently, there was a need to homogenize processes and establish robust internal controls. We sought to ensure not only operational efficiency but also transparency in management.
Context in which the actions took place.
The starting point was particularly challenging: the company was in a start-up phase. Not only human but also material resources were extremely limited, only two people and a laptop computer. In addition, there was little collaboration from the operations area of each affiliated company. This made it difficult to gather information and implement changes. Also, it was compounded by a recent change in the corporate structure.Which altered the relationships and dynamics between the different companies in the group. This even generated uncertainty and resistance to change.
Actions we conducted.
To achieve the proposed objectives, an action plan structured in several phases was designed and implemented:
– Identification, adaptation, and elaboration of procedure manuals: An exhaustive analysis of each administrative, accounting, and internal control process existing in each company was conducted. Then, based on this diagnosis, specific manuals were adapted and elaborated. To reflect best practices and standardized procedures. But, always adjusted to the reality and needs of each company.
– Implementation of the procedures: Once the manuals were defined, the progressive implementation of the procedures began in each of the companies represented. This process included training and support sessions to ensure the correct understanding and application of the new rules.
– Selection, hiring and training of a team of internal auditors: A team of internal auditors was formed, selecting profiles with experience and development potential. On the other hand, these professionals received specific training to perform their functions efficiently and in line with the project’s objectives.
– Detection and correction of non-compliance: The team of auditors identified possible non-compliances or weaknesses in internal controls. Therefore, they proposed corrective and improvement actions to strengthen management and minimize risks.
Challenges we had to overcome.
The project faced several significant challenges:
– Diversity of companies: The group consisted of companies of varied sizes, businesses, and teams, which required a flexible and adaptive approach.
– Lack of management collaboration: Some management showed resistance to the implementation of the new procedures. We were forced to reinforce communication and teamwork.
– Limited knowledge of certain companies: The lack of information on the internal workings complicated the development of procedures completely adjusted to their reality.
Limitations to be respected.
During the development of the project, it was essential to respect certain limitations:
– Available human and material resources: The team in charge of implementation was small, which required meticulous planning and efficient task allocation.
– Competencies of the operations area: The autonomy and competencies of each affiliate’s operations area were respected, always seeking collaboration and consensus.
– IT development pace: The adaptation of the integrated management system depended on the time and resources available in the technological area. As a result, this circumstance made it necessary to adjust the implementation schedule of the functional changes designed.
Results achieved.
Despite the difficulties, the results obtained were very favorable:
– Uniformity in processes: Homogeneous management of common movements and operations, such as cash management, was achieved. Which facilitated control and supervision.
– Improved performance: The core business areas experienced a significant improvement in their operation and efficiency.
– Basis for centralization: Clear rules were established that served as a starting point for moving towards greater centralization. Specfically in management and decision-making.
Demonstrated competencies.
During the development of the project, several key competencies were put into practice:
– Analysis and synthesis: Demonstrated in reviewing, developing and adapting rules and procedures.
– Team management: Actively involved company managers, fostering collaboration and commitment.
– Organization: Scheduling reviews and assigning responsibilities to internal auditors evidenced strong organizational skills.
Conclusions
Elaborating and implementing internal control and administrative procedures in such a diverse group of companies with limited resources was a demanding challenge. Also, it was a fantastic opportunity for growth and learning. A standardization of processes, improvement of internal control and creation of a solid foundation for centralized decision making. In short, a review of the business cycles: purchasing, sales and reporting.
