Management by exception is a policy by which management efforts are focused on performance or events that deviate from desired standards or planned results. Enabled by software that streamlines routine operations and identifies issues that need special attention, management by exception allows managers and executives to use their valuable time in the most cost-effective manner possible – solving problems.
Recent advancements in software technology have brought the benefits of management by exception to the realm of telecom expense management, contributing significantly to the cost savings and productivity improvements that TEM provides.
How do TEM solutions support management by exception? Here are some examples:
Call accounting – Call accounting sofware that monitors call detail records in real time can issue alerts immediately when calls are placed to or received from numbers that have been flagged for reasons of security, cost management, or corporate compliance. Call accounting software can also help you identify longest calls, most expensive calls, or other exceptional calling behavior that may require your attention.
Invoice validation – TEM solutions can automatically compare invoice charges against user-defined thresholds, contracted pricing, charges currently in dispute, and other criteria designed to protect you from billing errors and overcharges. You are alerted only when invoices fail validation, enabling you to initiate a discovery process to identity and resolve the problem.
Contract management – TEM contract management software can alert you to off-contract product or service orders so you can address the problem and secure the contract terms and conditions to which you are entitled. Contract management solutions may also provide contract renewal tracking; you are automatically notified to pending expirations, allowing you to prepare for contract renewal, negotiation, or termination.
Expense/performance management – TEM business intelligence solutions take management by exception beyond the operational level and help you focus on strategic issues that yield greater, long-term value. They allow you to study telecom usage and expense in highly detailed, flexible ways:
- You can analyze usage and spending patterns at various levels of the organization. Exceptionally high spend by individuals or departments may indicate inappropriate usage, mismatched wireless plans, or other problems that might otherwise be difficult to identify.
- Management dashboards can reveal historical trends and provide future projections of usage, spend, contract commitments and vendor performance. Exceptions in this context can indicate problems with policies, plans, or sourcing strategies that are only apparent over time.
The latest telecom expense management technology is a useful tool that executives can leverage to reap the benefits of management by exception.
Veramark Technologies, Inc. is a leading provider of telecom expense management solutions.