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Paperwork pain and how to cure it

Why businesses need to rethink their paperwork.
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Wouldn't it be great …

... if you could increase your personal efficiency and get things done?

Pointless paperwork is a problem for every entrepreneur. Of course, we like regulations when they apply to airliners and nuclear power stations but for most growing businesses they are speed bumps on the road to progress.

No wonder business owners complain about government red tape. But some of the pain is self-imposed. Companies sometimes make things more difficult for themselves by using paper-based holiday and expense forms, complicated purchase orders and invoices, disorganised files and inefficient processes.

All this paperwork imposes a cost on businesses:

  • Time spent entering information several times, in different forms.
  • Not having vital information with you when you need it.
  • Pointless searching for missing information.
  • Issues falling through the cracks because information isn't shared.
  • Having to do some administrative tasks in the office, which makes life hard for people who spend time with clients or work from home.

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In fact, anything that takes time away from someone's core job and away from whatever makes money for the firm is a cost to the business. And, frankly, who loves doing paperwork? In a classic Harvard Business Review article1, Frederick Herzberg analysed what motivates employees. The biggest motivators were achievement, recognition and the work itself. But the biggest demotivator, by far, was company policy and administration. In other words, if you get the administrative side of the business wrong, you risk alienating your staff.

The vast majority of small businesses use computers for routine administration. According to a YouGov poll commissioned by Microsoft, they use IT for:

  • Bookkeeping and accounting
  • Communicating with customers and suppliers
  • Storing important documents
  • Maintaining client and supplier databases
  • Staff salaries
  • Personnel
  • 86%
  • 85%
  • 80%
  • 78%
  • 62%
  • 31%

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However, this dependence can cause problems. The same poll found that companies suffered from IT 'downtime', not being able to find the right information quickly and easily enough, losing data, inefficient filing of documents and the cost of recreating information and documents unnecessarily.

Companies depend on IT for their routine administration these days. So it makes sense to get the best IT for the job. Technology can give small companies a competitive edge – real benefits that make them even more responsive. The right technology can make people more productive, more motivated and, yes, happier.


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1One More Time: How Do You Motivate Employees by Frederick Herzberg. HBR reprint R0301F.