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

    1. Budget holders approve up to R25,000 within their budget.
    2. 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.

    MeasureBeforeDay 30
    Wait for an answer6 working days1 working day
    Requests reaching the MD40 a month6 a month
    MD's time on approvalsAbout 7 hours a monthAbout 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

    1. Sales leads approve discounts up to 10% on the day, if the quote keeps a margin of at least 25%.
    2. 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.

    MeasureBeforeDay 30
    Wait for a discount answer4 working daysThe same day
    Quotes waiting for the meeting12 a monthNone
    Meeting time on discounts2.5 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

    1. Agents refund up to R500 on the call, with the reason logged.
    2. 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.

    MeasureBeforeDay 30
    Customer's wait for a refundUp to 3 daysOn the call, up to R500
    Refunds reaching a supervisor300 a monthAbout 40 a month
    Supervisors' time on refunds25 hours a monthAbout 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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