Example: Sue George, founder and president of George Engineering Services, has a problem.
consultants and sales people are using their personal credit cards to pay for their business travel and other expenses.
They are complaining a bit when George's book keeper is a little slower than expected to cut the reimbursement checks - their personal credit cards are maxed out or they have to pay the bill before George's reimbursement check arrives.
The bank sales representative suggests a corporate credit card for the traveling team members - all of the expenses will go to the corporate card, none to the consultants' personal cards.
likes the idea and agrees.
Accounts are set up.
Cards are issued.
The monthly bills arrive.
discovers that her
book keeper has a new problem - reconciling the corporate card statement with consultant expense reports, chasing down expenses that appear on the card statement that don't appear on consultant expense reports, and figuring out to which projects the expenses should be posted.
This adds an additional 4 - 8 hours of work per month for the book keeper.
New forms and procedures are needed, the book keeper's responsibilities must be rebalanced.
is RIPPING annoyed because she
had assumed that the corporate card would simplify and streamline things … and it did not!
The bank representative solved the obvious issue - employee satisfaction and credit card availability.
never asked about other elements that Sue
would need to change.
doesn't have a solution.
has a product and a headache.
Simple, neat, and incomplete.