A long standing provider of disability products and services recently aggregated separate disparate brands and operating divisions under a single brand. The NDIS was progressively rolling out and 50% of their constant revenue was transitioning to variable NDIS revenue.
Reasons for change
Overall the company was making a loss. At the same time it was struggling to operationalise the NDIS. Drowning in spreadsheets, service teams were going all out to keep up. Some NDIS revenue was leaking. The organisation was unable to separately report the financial contribution of the NDIS services after 2 years.
What was needed
The organisation believed a new Finance system would address these issues. Preliminary estimates of replacing their old system were an investment of $250k given the complexity of their business.
How we helped
Our team reviewed the purpose, strategy and flow of customers across the organisation. Our findings identified lack of commercial acumen in the Finance function, duplicated processes across divisions, an overly complicated operating structure and a lack of ways to measure both operational and financial performance. These critical business issues were not going to be fixed by implementing a new Finance System. In fact, the system they had was perfectly adequate.
Understand their reality. The CEO was clearly able to see how they were contributing to their situation, which was not an IT problem.
Identified opportunities. Standardising processing, aligning executive roles around customers and enhancements to provide timely and relevant financial measures.
Cost avoidance. Most importantly, they avoided investing $250k in a new Finance system - because IT wasn't the real issue.
Avoided spending $250k on a new Finance System they didn't really need.
Many organisations think technology will be the panacea for their business issues. This Disability organisation was able to attend to the right problem.