Poorly run organizations waste time (and time is money). This inhibits the company’s ability to hit markets at optimum times. Allow me to give you an example
Several years ago, I worked with a company in the wastewater treatment industry that consistently put in long hours to meet deadlines. Why all the long hours? The owners relied on one individual to make all of the decisions. This was far from a wise use of corporate time and resources. The result was burn-out, missed deadlines, and in the end, the company went out of business.
An inaccurate assessment of the time needed to conduct a project, write a report, develop a product, etc. is critical to organizational success. If the estimate of time is over or under, money is wasted. And if your company is in the business of bringing products to market, the window of opportunity is open only for so long.
Another huge time and money guzzler that takes away from strategic organizational focus is technology. If an organization is “wedded” to its technology and refuses to alter its approach, it often consumes more cash before realizing too late that it must change direction. Don’t keep throwing good money into bad software under the assumption that it costs less to “update” what you already have. It usually doesn’t.
A recent client was sometimes spending upwards of seven or more hours trying to print a 15-page report. If software is causing so wasted time, why spend time and money trying to fix a problem that in all likelihood cannot be fixed? Stop, scrap, and start over to save money. Knowing when to let go of technology is a management skill that cannot be underestimated.
Mismanaged organizations consume budgets without ever hitting milestones necessary to achieve success. In the process, they produce frustrated and burned-out staff along with the possibility of business shut-down.
Don’t be afraid to let go of products and processes that no longer work effectively or efficiently, regardless of the cost to replace them. In the long-term, replacement will yield far greater productivity results.
Benchmark studies over the past 15 years have shown that organizations can reap tremendous rewards with modest or no capital investments. Some of these gains have resulted in, for example:
Doubled outputs and profits with the same staff allocation
Doubled productivity across all levels of the organization
Reduced throughput time and defects by 90%
Reduced supply chain inventory by 75%
Reduced space and unit costs by 50%
What’s your organization doing? Is it surviving or thriving? If it’s not thriving, take a look at how your staff’s time is being used. You may be surprised at the potential savings that can be had through simple changes.