OP ED: Emphasis Should Be On Reimbursement Systems

Purists will say that complete reengineering would require the integration of these two steps into a single process--and they would be right. But in 1997, it usually will be easier to adopt these technologies separately.

Companies and travelers are more likely to quickly embrace automated reimbursement systems than booking tools. They create a new dimension of control over travel spending that is guaranteed to make your controller's heart sing. People, including senior management, really want automated reimbursement; nobody likes to mess with expense reports.

Management also is more likely to want these systems because they are not applicable only to T&E but work equally well for a wide variety of expenses. They might therefore be more attractive to many senior managers if they are presented as companywide solutions.

The primary benefit for the company will be time savings, including the time for completing and auditing expense reports. Travelers will be happy because if their report complies with policy, they won't have to worry about reimbursement delays. Most travelers also will be delighted to have their reports automatically prepopulated. Managers and auditors will be happy because the systems will flag policy exceptions, allowing faster and more accurate reviews.

Travel managers will be ecstatic because they can get the closest thing possible to perfect travel data: real-time data about actual spending. This leapfrogs the historically contentious issue of trying to get travelers to use a single charge card. Evaluating and implementing expense reimbursement systems also offers travel managers an excellent opportunity to work in a cross-functional environment to drive change, and create value within their organizations.

Several "best-in-class" companies have made the mistake of not including the travel manager in the process. The result has been hugely expensive systems that cannot report on travel spending.

Start by getting other departments excited about the benefits. Schedule briefings and product demonstrations for other managers in information technology and finance or accounts payable.

Next, you need to understand the information technology infrastructure in your firm, specifically networking and e-mail, to determine whether there are major stumbling blocks or impending changes that prospective vendors will need to know about.

You will need to map the process by which your firm processes reimbursement requests. It is important that you be able to describe this to prospective vendors.

Travel managers are well positioned to drive automation. Many vendors offering these systems are familiar to travel managers. Agency and card systems might be significantly less expensive than third-party systems, and only the TM can assess whether the savings are justified based on those vendors' core services.

<I>Tom Wilkinson is president of Travel Management Group, a consulting company in Alexandria, Va..