Cost-reduction opportunities exist due to individual
mistakes that alone sound innocuous but, in combination with other related
mistakes, spell bad financial judgment. First, an error in interpretation of
the Foreign Corrupt Practices Act by accounting firms led to criticizing
clients for “lack of a computer disaster recovery plan”. That criticism was
misdirected. What was actually needed was interim processing strategies to be
used in the event of a disruption in normal data processing technology. Placing
undue emphasis on computer technology, instead of business continuity, was the mistake.
Because the focus was on the wrong issue, it led organizations to assign
project responsibility might have been assigned to a staff person positioned to
facilitate a strategic plan. However, with the focus on computers,
responsibility was assigned to data processing personnel, who are normally not
trained in the synergistic process used to develop strategic programs.
In many instances,
these errors resulted in technical solutions being substituted for sound
business judgment because the situation was defined as a computer problem that
needed a computer situation. The result for many organizations has been
excessive expenditures for redundant processing. Taken over a period of 20 to
30 years, this amounts to millions to millions of dollars being wasted.
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