Document management key to back-office efficiency

USING technology to improve back-office efficiency is fine, but without a proper document management system in place it will never work, says Jim Kilkenny of Kilkenny Rose and Associates who will be speaking at the convention on Wednesday, October 8.

He says most financial planners’ back-offices can be described as an ongoing process of implementing instructions while dealing with a constant stream of interruptions against a background of unreasonable deadlines and unrealised client expectations.

“This describes the typical process in client service in many financial planning practices,” he says.

“Even with what, on paper, appears to be sensible and logical systems, the very nature of the business tends to ensure that, from time to time, the strains will show.”

Kilkenny says his experience of a boutique financial planning firm trying to create a decent back-office will be the thrust of his convention presentation.

“It was all about eliminating hard copy filing using document technology,” he says.

“We moved to a high-speed scanner and a proper document management system.”

Kilkenny says an effective system should have a range of characteristics and objectives that include maximising productivity, minimising error, offering the flexibility for change, and complying with allASICandFPAguidelines.

He says involving the staff in the design of the system and ongoing reviews is also important.

“Our staff understands the benefits to themselves and to the organisation of constantly evolving and improving our existing systems,” Kilkenny says.

“Technology is an integral part of systems, but the more technology solutions can be intertwined with physical systems, the more likely the productivity gains and quality outcomes.”

Kilkenny says the key to improving the back-office is reducing the amount of paper being handled, in particular, locating and replacing files physically in a system.

“When this is combined with the file maintenance issues involved in constantly moving pieces of paper into physical files, the process is never-ending and extraordinarily inefficient,” he says.

Creating an efficient back-office is an ongoing process and Kilkenny says his company is constantly in the process of re-engineering its systems in conjunction with a detailed review of the technological tools used in the office.

“Interaction between your office systems and technology is inescapable, and one issue cannot be considered without the other,” he says.

There are also opportunities to share ideas and solutions with similar-sized financial planning practices and Kilkenny Rose works with two similar firms.

“In this process, we have been able to share a range of ideas and problems to assist in improving productivity and profitability within all our businesses,” he says.

“The area of administration systems is seen as a very important area of mutual concern.”

Kilkenny says the aim of creating a more efficient back-office was to improve its service to clients and ensure staff are happy working in the practice.

Additionally, there is also the objective of increasing productivity to increase profitability, he says.