By: Abe WalkingBear Sanchez

Best Biz Ways; Powerful in effect with little waste of effort.

Once, not so very long ago, there walked upon the face of the planet a juggernaut
who crushed all that got in its way. This 900 lb. gorilla had an unusual name for
a gorilla, Arthur Andersen, and it wrote a book.

In 1999 my friend Bob Rollins sent me a copy of the book, "Best Practices;
Building Your Business with Customer-Focused Solutions" by three of the senior
managers of the worldwide giant accounting and consulting firm, Arthur Andersen.
The book dealt with the best ways to perform business processes and was based
on companies studied by Andersen consultants.

About the same time the chairman of a CEO group I had spoken to told me about
a Global Best Practices Knowledge Base website by Arthur Andersen called
KnowledgeSpace.com. I read the book and found that the focus on "process" by
a number of Andersen clients, including Enron, was out of date and self-serving.
Then I went to the website and found that for a $96 fee I could research the
knowledge base on best practices to improve business performance. I paid the
fee and started searching for "B2B Credit and A/R management" and what I
found was a lot of outdated 1950 material having to do with  DSO, % bad debt,
ratio analysis and risk management.

It took  hours on the phone and sending emails to finally track down the V.P
in charge of website content and when I got this woman on the phone I said
to her that I had some questions. My first question was, "Where did you get
this material pertaining to B2B Credit Management?" I wanted to know the
source for what they claimed to be the best way to carry out the Credit and
A/R management function. "We've spent six years and over $30,000,000 on
ongoing research by our worldwide consultants on how the best companies do
things." she answered. "So these are best practices according to your clients
and your people?", I asked.

This V.P. of the website knowledge base reacted as if I was doubting the
established fact that AA was the leader in the field; the big one of the big six.
"We are ARTHUR ANDERSEN and we work with great clients like Enron
and these are "THE" best business practices.", she said.

"I have another question", I said..."If the source of your knowledge base is
AA employees and clients, aren't you limiting the intellectual gene pool? And
if you practice corporate inbreeding don't you run the risk of children whose
eyes are real close together?" She hung up.

When I first went into consulting in 1982 I avoided calling myself a
"consultant" in part because of the definitions of a "consultant". A
consultant is a man between jobs, a consultant is a man who comes into
your business and picks your brain for your knowledge and when he
leaves he takes that knowledge with him and sells it to the next guy and
the worse definition, a consultant is a man that can tell you all about
sex but doesn't know any women. I was determined that I wouldn't be
a run of the mill consultant.

After several years of working with many small clients, of teaching them what
I knew about turning credit and a/r management into a profit center, I got a
referral from a sales V.P. of a huge international firm who was based in Denver.
He suggested that I contact the company's regional CFO and explain how I
could help.

Over the next two weeks I left 3 messages for the CFO and finally got a return
call from the CFO's assistant . I started to explain that I had been referred by
the sales V.P. in Denver because he could see where I could help the company
improve on how they managed credit and a/r ...he cut me off.

"We just had the very prestigious consulting firm from the U.K., "Find'em,
Beat'em, Cheat'em and Howe" come in and do an evaluation of our credit and
A/R management business practices and with the exception of a few minor points
they validated how we do things.", explained the assistant CFO.

On hearing the word "validation" what comes to my mind is finding the right
guy to stamp your parking ticket or calling your mama for some kind words, if
you are lucky enough to still have her; but to pay a consultant to come in and
tell you how great you are..no way!

I believe that the job of a consultant is to share what they know and to push
clients out of their comfort zone; to force thinking. But I kept my thoughts to
myself and instead said to the man, "That's great that you have an outside party
come in and evaluate how you do things", and then I started to ask how my
firm could participate in the next evaluation...he cut me off.

"We have already contracted with the same firm to come back next year."
he said and then he went on to explain that his boss, the CFO, had worked
at the consulting firm before she'd joined the company and that I was wasting
my time calling her. More corporate inbreeding.

Every person on the planet sees things differently, His Holiness, The Dali
Lama says that there are six and a half billion of us and six and a half billion
versions of reality; it's the same with companies. Businesses are a collection
of many different people, none of whom define the business but collectively
they make up the business. And what works at one company may not work
at another..every company and it's people are unique . The process for best
business practices must be based on each company's understanding of what
is is.

Purpose: Every business function must have a clearly stated purpose which
answers the question, "Why incur the costs that go with the function?" Seven,
eight out of ten business managers can't give a clear and concise "purpose" for
the business function they manage.

Policies: Goal driven guidelines for each major component within the function.
Every business function can be broken down to it's major components.

Process: The step by step method for achieving the goals established by the
policies. Ask the experts, the people who carry out the process, and it will
differ from company to company.

People Requirements: The right people for the job based on the process.

Process Monitoring and Performance Measurements: Monitor key steps in
the process to ensure quality and measure against the goals established by
the policies.

If the goals established by the policies are possible but go unmet...you either
have the wrong process or the wrong people for the job. 

Time has shown that Enron's best business practices were in hoodwinking,
cooking the books, deceit, and trickery. And our 900 lb. gorilla? Just a shadow
of his former self.

"Those firmly seated in authority soon learn to think security and not
progress." James Russell Lowell

To which I would add "and the security they come to think of is their own."

The Author

Abe WalkingBear Sanchez is an International Speaker / Trainer / Consultant on the subject of
cash flow / sales enhancement and business knowledge organization and use. Founder and President
of www.armg-usa.com , WalkingBear has authored hundreds of business articles. A hard hitting
and fast paced speaker, he brings life and energy to a critical business function whose true potential
has yet to be realized by most businesses.

Cimex Training,  Irish Institute of Credit Management, Atradius, Vistage, CU, CSU, Texas A&M,
National Association of  Credit Management - Kansas City, HTDA, BCFM, Poli Hi Solidur,
Skinner Nurseries, Deardens, Rain Bird, STAFDA, IBM, Wisconsin Credit Association, are
but a few of the groups, schools, companies and associations for whom WalkingBear has
conducted programs.

WalkingBear can be reached through:
A/R Management Group, Inc.
P.O. Box 457
Canon City, CO 81215
(719) 276-0595
email: abe@armg-usa.com
www.armg-usa.com