Work waited here ↓
Three approvals most businesses will recognise. The figures are worked to show the method.
Every purchase over R5,000 waits for the MD
What was happening
In a 60-person business, about 40 purchase requests a month wait six working days for the managing director's signature.
Where it came from
A supplier was paid twice in 2019. The finance system now flags duplicate invoices, and the rule stayed anyway.
The two rules
- Budget holders approve up to R25,000 within their budget.
- Anything outside budget, or from a new supplier, gets the MD's answer within one working day.
What stayed
The duplicate-invoice check, and the MD's approval for every new supplier.
| Measure | Before | Day 30 |
|---|---|---|
| Wait for an answer | 6 working days | 1 working day |
| Requests reaching the MD | 40 a month | 6 a month |
| MD's time on approvals | About 7 hours a month | About 1 hour a month |
Day 90
Finance values the MD's time saved at about R102,000 a year: 68 hours at R1,500 an hour.
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Client discounts wait for the Monday meeting
What was happening
Any discount over 5% waits for the Monday management meeting. A client who asks on a Tuesday waits almost a week, and some buy elsewhere.
Where it came from
A large discount once turned a big job into a loss. Quotes now come from a costed price list with the margin built in, and the rule stayed anyway.
The two rules
- Sales leads approve discounts up to 10% on the day, if the quote keeps a margin of at least 25%.
- Anything larger goes to the sales director, with an answer within 24 hours.
What stayed
The 25% margin floor, and a monthly review of every discount.
| Measure | Before | Day 30 |
|---|---|---|
| Wait for a discount answer | 4 working days | The same day |
| Quotes waiting for the meeting | 12 a month | None |
| Meeting time on discounts | 2.5 hours a week (five managers, 30 minutes) | None |
Day 90
Finance values the meeting time saved at about R138,000 a year: 115 hours at R1,200 an hour.
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Every refund needs a supervisor
What was happening
In a customer service team of 12, every refund goes to one of two supervisors, though most are under R500. Customers wait up to three days.
Where it came from
An agent once refunded friends' accounts. Every refund is now logged against the agent's name, and the rule stayed anyway.
The two rules
- Agents refund up to R500 on the call, with the reason logged.
- Anything over R500 gets a supervisor's answer the same day.
What stayed
The refund log, and a weekly check of a sample of refunds.
| Measure | Before | Day 30 |
|---|---|---|
| Customer's wait for a refund | Up to 3 days | On the call, up to R500 |
| Refunds reaching a supervisor | 300 a month | About 40 a month |
| Supervisors' time on refunds | 25 hours a month | About 3 hours a month |
Day 90
Finance values the supervisors' time saved at about R91,000 a year: 260 hours at R350 an hour.
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