Reading Time: 5-6 minutes
Target Audience: Business Decision Makers
It happens in all industries. There comes a time when the business needs to lift its game and start producing more or meeting new targets, but it seems that without a cash injection, change is impossible. It is difficult to predict all potential needs at the beginning of each financial year, and unfortunately some requirements cannot wait until the new financial year to address.
The boss may not want to spend money on new systems because that can eat into the capital. In some cases the boss may ‘put off’ addressing an issue as it arises, and may decide to share the load amongst other staff to relieve pressure from that particular department. This may be a short term solution but later on will most likely result in hiring more staff and delaying the expenditure which may end up costing more over time.
So what’s going through the boss’s mind?
This is an expense to the company and at that time is not seen as a solution.The cost of new systems: Software or new equipment can be very expensive. Apart from wondering where their money will come from, your boss is worried at the potential losses caused by choosing the wrong program. There is fear of the unknown. He is also concerned that all new equipment have a limited life span, so how long might it be before he has to go through this situation all over again?
The cost of researching to find the right system: How long is it going to take to work out which system the business needs? Who is going to do that? and where will they get information from? Can the business afford to wait while someone does the research? Isn’t this just a staffing issue and we need to hire an extra person to address this particular matter or as mentioned above, spread the workload across some other staff?
No guarantee it will work: What if the business chooses the wrong solution? What if we spend money we don’t have, and it makes no difference? Unless your boss knows for sure that the solution will work, why even consider something that may even make things worse?
The cost of training staff: Even if your boss decides to spend money on software or systems, there is an inevitable cost involved in training staff to use the solution. How much will the final total spend amount to? Does this need to be paid upfront?
Lost production time as staff learn to use the newly introduced tools: What impact will the training period have on team productivity?
Will more people overcome the problem?: Would the business manage things better if it employed more people? Perhaps sending more manpower to the problem area will help, or could it be that things get worse because ‘too many cooks spoil the broth’?
All of these questions are swirling around your boss’s mind, and if he’s choosing a solution based on the least money he has to spend, he’s probably going to get it wrong. The most cost-effective choice to make is to look at and update your current systems or use your current systems & integrate some new solutions.
Analysing Business Processes
No amount of new employees can compensate for processes or software that is out of date. Until the systems are reviewed and updated, the boss will end up recruiting more and more people to try to fill the gaps. Of course, the problem is that without analysing the business processes, how will the boss know where to place the new recruits? No business can rely on guesswork to keep their workplace operating at optimum performance. How can he target the specific pain point without assessing their issue and figuring out where the current system / set up is failing.
And can you imagine the end cost of all these new workers? It’s far more expensive than the cost of reviewing the systems. If there is a concern about spending time training staff on the new systems, there should also be a concern on training new staff on current systems and the lack of productivity on the whole team during that period.
Analysing the business processes helps pinpoint the areas that are or are not working well. Once they are identified, the boss will know whether or not recruitment will solve the problem. This can also show the boss where there may potentially be staff who are hired for one purpose helping or doing a more basic job that another staff member should be doing.
If your boss does not want to spend money, then looking at your current systems and coming up with better ways to do things (without a hefty price tag attached) will be a much better solution for the company.
Redesigning Business Processes
No one wants to be stuck doing the most menial tasks that are involved in the day to day operations of business. Perhaps these could be shared or automated, so they no longer have to be carried out at all. Giving yourself the freedom and the opportunity to redesign business processes can be extremely motivating for the whole organisation. How can you keep moving forward to improve the way you do business? Maintaining a competitive advantage is good for your staff, your customers and the entire morale of the organisation. Doing something ‘that way’ because you have always done it ‘that way’ no longer works in the modern business world. This may be the time or opportunity for you to move one step ahead of the game, or in fact simply keep up. It gives staff members the chance to voice their opinion on the matter at hand and explain the pain points from their practical perspective and to paint an overall picture.
Implementing New Business Platforms
The importance of optimising and implementing platforms that reflect the new focus of a business is often underestimated. All organisations want to achieve more by doing less; maximising your productivity is important on every level. Companies want to see real and consistent benefits through their new business platforms without time-consuming processes holding them back. Fewer hours spent on training, administration and general operations are a high priority for firms in any industry. While staffing costs may not seem like a serious issue, the expense of wages including superannuation and holiday leave can quickly add up for small business making it an impossible option. Implementing new business platforms may not be a quick work around, but they save thousands of dollars in the long term.
Once your boss understands the possibility that changes can be made without the high costs of hiring more staff, then they will likely be on board with any suggestions or plans you make. Doing your homework and communicating the overall benefits will ensure that your projects will not be ignored in the next scheduled business meeting.
Have you been in this situation before? How did you help the boss to make the right decision? Please leave us a comment below. We’d love to hear your story.
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