SourceNet Solutions President & CEO Leon J. Busch leads through empowerment and supreme customer service.
 
 by FAOT Staff
 
FAO Today:
Chances are you didn’t major in Finance & Accounting Outsourcing in college—What trajectory has your career followed so far, and how did you arrive at a position in FAO?

Busch:
I did major in finance. I have a finance degree from Michigan State University. After graduating from college I was interested in pursuing a career within my degree while expanding my technical knowledge. I was fortunate to find an opportunity that let me do both: Installing computer systems in car dealerships nationwide. I was able to travel across the country and install the computer systems and then spend time training the dealership’s staff on how to use the system to drive efficiency optimization in all aspects of the car dealership, from sales, to the back office, to parts and service. This let me use my degree to some extent, as well as learn a tremendous amount in the technical arena.

After doing that for number of years I still had a desire to expand my technological background and knowledge. As such, I went to work for a software development company as quality assurance manager where I worked with software developers to build software for a number of years.

At that point, through mutual acquaintances, I became aware of SourceNet Solutions, a fairly new company that was looking for some help in their technology area. I accepted an offer from them, and my first project was an SAP implementation that included imaging and workflow. We had just signed one of our first major clients—Browning Ferris Industries—and were experiencing significant growth. We went from less than 30 employees to close to 200 in the first 15 months that I was at SourceNet.

You can imagine in that environment it was “all hands on deck.” While my main focus was on technology, we were all focused on whatever needed to be done on any given day, from technology, to customer service, to working on process flows. I began to experience the entire breadth of the organization.

Later, by the end of 1998 we started to develop our first proprietary web-based workflow solution. I was leading that effort, working with the development team. The second critical development happened in late 1998, when we signed another large contract, and we went from 180 employees to more than 350 over the next one-and-a-half years. When we signed that contract, the co-founders of the organization needed help managing the new client implementation and asked me to lead the team that was moving a service center in Massachusetts down to Houston.

That service center included AP, payroll, and employee expense reimbursement. For the next seven months I traveled back and forth from Houston to Boston to move work to Houston, which was completed in 1999. Then I assumed ownership of that aspect of the operation.

Unbeknownst to me, at that point, my operational career began. I went from a focus on technology to leading one of biggest implementations we had ever completed, to assuming responsibility for the ongoing client relationship.  Shortly thereafter, the CEO asked me to become Vice President  I remained the VP of Operations from 2000 until May of 2005, when The Bank of New York Mellon, which acquired SourceNet in 2004, offered me the opportunity to become president and CEO of SourceNet.

It’s been extremely exciting, a fun 11 years. The constant change and dynamics and challenges we encounter keep it that way. When we started, we had two competitors. One was Corpay in Michigan, which was bought by Datamatics. The other was Blizzard, a spinout of a Sysco Shared Service Center. In 2000, our competitors became ACS, IBM, and Accenture, and then offshore became more prevalent.  Now there is electronic presentment and payment. There’s always been something new and interesting to deal with.
 
FAO Today:
You’ve been at the helm of SourceNet Solutions for a long time—how have the industry and the company changed in that time?

Busch:
The challenges have been numerous, and the competitive landscape has changed tremendously. When we started in 1996, there wasn’t such a thing as F&A outsourcing. Now there is HRO, ITO, FAO, and more. The cost profile has also changed dramatically with the introduction of offshore labor, technology investment and advancement. How we have faced those challenges goes back to our roots around trying to be as innovative and focused on problem solving as we could be and never assuming that the status quo was the way to continue being successful. If anyone tells you that the answer to a question is “that’s the way we’ve always done it,” you know you have an opportunity to improve the process.  When new employees come in, I tell them:
• Ask lots of questions;
• Make decisions; and
• Try to break things.

Never assume that, because someone has been here longer, that the way they are doing things is the right way. Also, I often say that if everyone is going to look to me to make decisions, they will be waiting for a very long time. The employee closest to the issue should have the ability to make the decision. I try to advocate that method throughout the organization, to stay limber and responsive to changes and pressures.

FAO Today:
The economic slump is casting a pall over so many industries. How will the outsourcing
industry ride out the storm?

Busch:
At SourceNet, prospects from 12 to 18 months ago, who did not make an outsourcing decision, have recently re-engaged with SourceNet.  They are contacting SourceNet and saying, “We had a proposal last year and would like to revisit it.” The economic crisis and uncertainty are compelling companies to take a new look at cost-reduction initiatives and examine internal project thresholds and hurdles related to ROI.  It has been the case that due to the economic climate an outsourcing engagement where the ROI was outside the prospects goal or the savings weren’t going to be as much as they had hoped, now look more attractive. We are seeing a heightened amount of activity. One prospect we talked to in 2006 didn’t make a decision, and they kept operating as they were. Now they have realized that they should have made that decision, but 2008 was better late than never.  

From a broader perspective, there’s a heightened sense of cost controls, transformational
activities, and a desire to do those things, even commit to do them. But in times like this, those are the first things that get pulled off the ledger, in terms of transformation, because you have to focus on the core business. There’s an opportunity for the outsourcing community to step up and assume a leadership position on the cost-reduction side, as well as transformation and efficiency gains. We can help companies understand relationships within the back office that they can take advantage of by engaging the right partner.
One area we focus on is trying to help organizations understand that not only can we save them money in the first 12 months, we can look out farther and help them see how the cost saving process isn’t going to stop after they sign the contract.  It will continue for the life of the relationship.  Organizations are anxious to garner assistance on how they can sustain business and operate in a very tough economic environment. We are in a unique position to offer best-in-class service and technology to these organizations.

FAO Today:
Do you see SourceNet adding services to its roster?
Busch:
In the short term, I would say no. We are exceptionally good at what we do, and will stay true to core services and take them to as efficient a level as possible. Having said that, SourceNet is always looking for opportunities to expand our suite of services but we’ve done that in a manner where it’s always been complementary to a core service as opposed to raising an entirely new business line or new division.
Mid to long term, an opportunity I see for SourceNet is the fact that globalization isn’t going to stop. We are in the process of positioning ourselves to offer service on an international level. It’s the next logical step on a growth continuum. Once we move outside the North American theater and begin to interact with other geographies we will have exposure to other services outside of the traditional U.S. definition of AP. International expansion will take us into other services that in those theaters are complementary or required to provide a comprehensive AP solution.
FAO Today:
SourceNet has been at the top of its niche for several years now. What did you bring to the table in 1997 that is still keeping the company going strong 11 years later?
Busch:
A commitment to customer service.  When we have folks come to visit, we show them the process and technology and talk about transformation, and they get excited, but internally I stress that we are a customer service organization first and foremost. If you are like me, I don’t want to talk to a computer, I want to talk to a person. The success of our relationship is based on our people and our client’s forging a strong relationship focused on common goals and delivering service.
The important point that I try to instill is we have efficient technology, and our processes are best-in-class, but if our people aren’t best-in-class, all that doesn’t matter. You have to have the best interests of the client in mind at all times. We have been recognized as the best AP provider for three years running. But if you don’t have good customer service, no one will buy your product or service. We empower employees to make sure we are doing what’s in the best interest of our clients. We told our people to make decisions and have fun. I continue to try to instill that culture throughout the organization.
FAO Today:
What is your vision for SourceNet’s future?
Busch:
We’re going to focus on growing the organization, look at moving our operations and services forward and making sure we can deliver in a global manner for organizations that desire a high degree of commonality in the global AP process. We want to get that done in the next year or two. Five years from now or sooner, I hope to see SourceNet recognized not just as the leading AP provider in America, but as the top AP provider in the world. We want to take the success of our North America service beyond our borders, look at other geographies and build a similar level of success.
One of the items that was a benefit of being acquired by The Bank of New York Mellon was having an immediate global reach we could not have had otherwise. Where does it make the most sense to leverage existing operational activities? The UK and Western Europe make sense as the initial foray, and we are looking at operations in those areas. We are talking to clients that need service in those areas. Obviously, we are trying to win that work as well as establish a presence and breathe life into those operational areas with some existing infrastructure.
FAO Today:
What is your philosophy on outsourcing and the future of our industry?
Busch:
Outsourcing, onshore or offshore, is a tool. It’s a tool that needs to be used when appropriate.  Organizations need to evaluate and decide if that tool can help them be more successful. It’s not for everyone.  We have told prospects that it might not be the right solution for them, and why. Organizations should evaluate outsourcing, keep an open mind, but realize this is a tool, one of a few different ways to solve problems they are having. They have to fairly evaluate that tool and make the best decision they can.
In approaching our deals, if we believe it’s in a company’s best interest to outsource, and with us, we will tell them that. But if it’s not, we help them understand other alternatives. That’s my approach on outsourcing, and the one we take in our business. We want to avoid getting into a relationship that goes sour. If you are a hammer and they are looking for a shovel, don’t tell them you can be a really good shovel. It won’t take the customer very long to figure it out.