Two key P-Card topics resurface in Dr. Palmer interview.

December 9, 2014 Lynn Larson

In what two areas do organizations often face challenges? During my recent interview with Dr. Palmer, RPMG Research, about their 2014 Purchasing Card study results, two hot topics were controls and supplier acceptance of card payments. Both could contribute to a plateau in card use; as he explained:

a constant reconsideration of how to exercise appropriate control over spending causes changes in the policies, procedures, and practices related to card use
the desire to use cards often runs ahead of supplier acceptance in the market

What can we do about these issues to avoid a plateau and increase the value of P-Card programs? Below are more observations plus suggestions from Dr. Palmer.

Controls

Organizations reflexively move toward a “belt and suspenders” concept of control that is both unnecessary and inefficient. Program managers need to be thought leaders who work with, and enlist the support of, other thoughtful associates in the finance function to construct the right blend of controls for card-based procurement. In an era of constrained resources, one should be able to make a compelling case for the technology-enabled controlled growth of P-Card spending.

See related blog post on how to reassure management about your P-Card controls.

Ensure your P-Card program offers the greatest value at the lowest cost. Follow best practices, including those pertaining to controls and working with your suppliers.

Supplier Acceptance

It is very important, particularly in the “business-to-business” segment of the market, that card issuers and card-using organizations quantify and educate suppliers on the beneficial aspects of acceptance. Absent a clear demonstration of value and education, suppliers will focus on the costs of card acceptance and remain unaware of, or ignore, the benefits. Articulating and measuring the benefits will insure an open and honest discussion.

With respect to the level of supplier enablement, we did find that “best practice” organizations were more likely to have requested and obtained the support of their card issuer in expanding card acceptance.

See related blog post by AOC Solutions, including a quote from Recharged Education, about raising the bar on supplier enrollment in regard to electronic accounts payable (EAP).

Learn More

Read the two-page interview with Dr. Palmer in which he also describes key opportunities for the majority of organizations, including EAP, and shares what keeps RPMG motivated to conduct the industry studies.

About the Author

Blog post author Lynn Larson, CPCP, is the founder of Recharged Education. With more than 15 years of Commercial Card experience, her mission is to make industry education readily accessible to all. Learn more…

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When reorganization is a good thing for your career.

December 4, 2014 Lynn Larson

What does reorganization mean to you? In the workplace, it often means a disruption or forced change, but there is a different side. In your professional life, it can mean a renewed focus on working smarter and initiating positive change.

I have been reading the book The Organized Mind—Thinking Straight in the Age of Information Overload by Daniel J. Levitin. After the science-heavy content in part one, it flows with stories and common sense advice to help anyone reorganize how they work and live to achieve greater focus and efficiency.

Manage Your Time

Like Bob Kodzis, the keynote speaker I heard in May (see related blog post), Levitin confirms the myth of multitasking, explaining how it:

makes us demonstrably less efficient
increases adrenaline and the stress hormone cortisol

Cell phones and electronic communication have worsened the multitasking epidemic, conceiving the expectation that people should be reachable all the time. Levitin warns that our constant email activity “gives us a sense that we’re getting things done and, in some cases, we are. But we are sacrificing efficiency and deep concentration when we interrupt our priorities with email.” He and other experts recommend:

setting aside a few concentrated times during the day to address email
utilizing email filters and other tools to organize and prioritize
training friends and coworkers to not expect immediate responses to every message

Externalize Information to Clear Your Mind

Our brains can only remember so much. Levitin reminds readers to off-load information to external sources. Making to-do lists and jotting ideas when you think of them are standard tactics. Extending the practice to your business contacts will help you keep track of people.

Record when you last connected with someone and what you discussed, including any personal tidbits. This can jump-start your next communication. If you can also add a personal touch (“How is your garden doing?”), it demonstrates your interest in the person, which can strengthen the relationship.

Choose change. Take steps within your professional life to reorganize and work smarter.

Reorganize Your Work Environment

A clear, organized mind also needs an orderly environment (physical and electronic) in which everything has a designated place. Levitin encourages readers to carefully create categories and then sub-divide. This approach is a stress reliever and time saver. Now comes the P-Card tip...

If you manage a P-Card program, apply categorization to your policies and procedures. Some organizations fail to begin their P-Card P&P with a table of contents (TOC), which makes content harder to find. Others include a TOC that is too short or vague to provide any real value. As I suggest in my P-Card P&P guide, develop a TOC that:

offers meaningful primary topics and sub-topics
arranges topics in a logical order
reflects what users seek

Think about what you experience regularly, such as frequently asked questions and common mistakes. Make those topics more prominent.

Finally, if you find yourself at the receiving end of unwelcome workplace reorganization, embrace the concepts above—managing your time, incoming information and environment—to focus on initiating a brighter future.

See also a related blog post about rediscovering the leader within you.

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Your disaster recovery plans deserve to be reassessed.

November 18, 2014 Lynn Larson

From a purchasing and payments view, is your organization prepared to respond to a disaster? What is the plan? Paula Cooper* realized her employer had overlooked many details. Could this be you?

Within the disaster plans, Paula’s organization had identified Purchasing Cards as the primary payment vehicle. Procurement staff would be responsible for the majority of emergency purchases; most already had a card. Paula, as the program manager, would simply increase their limits. Not so fast…

Ask Detailed Questions

Would procurement’s P-Cards be accessible when disaster strikes, including nights and weekends? Where did they store the cards?
What, exactly, would procurement staff need to buy? Would it vary, depending on the disaster?
Would they be able to handle all the purchasing needs or would others need to assist?
If additional cards are needed, how quickly will the issuer respond?
How would the card controls need to change? How high should the limits be? Should all MCC restrictions be removed?

To resolve these details, Paula recommended they conduct needs assessments. She was also concerned that her organization had never discussed disaster planning and recovery with the card issuer. Their contract did not mention it.

*To uphold her organization's confidentiality, Paula Cooper is not her real name.

Reassess your disaster plans to ensure all key points have been addressed.

Work with Your Issuer

Paula made a list of items to address with their card issuer, including:

the results of her organization's needs assessments
how to ensure swift responses by the issuer during a disaster
potential for increasing the organization spend limit to accommodate disaster purchases
how to prevent unusual purchases from getting declined at crucial times

Communication is Critical

Finally, Paula learned that individual departments were also devising their own purchasing plans in the event of a disaster. One cardholder asked if he could share his card with his manager, who would need to make purchases, too. The lack of internal coordination and communication was immediately evident.

What Can You Improve?

If your organization is like Paula’s, there is room for improvement concerning emergency preparedness. Access the related webpage for more on this topic.