In business, every decision has long term consequences. We often don’t fully perceive the consequences because they are often hidden by the compromises that make us feel better. All growth minded business leaders understand that your business decisions have higher financial impact on your organization.
Impact of IT decisions on most critical items that matters
Payroll: Most business leaders understand their biggest expense in business is Payroll. So, are you concern about your return on investment on payroll? Regardless of staff working or waiting for technology issues to be resolved, you still have to provide payroll.
Consider following: If you are losing even 15-20 payroll hours monthly. How much money you are losing in payroll hours/dollars? How much more work you can get from your employees, if there’s no hour(s) wasted on technology issues? Read further details…
Revenue: All businesses have same hours weekly, monthly or yearly to generate desire revenue. As a business leader, we all want our teams to invest more, if not all of their time on revenue generating items but ask yourself, how much time your team(s) spends on following technology issues during business hours.
- Training issues: Employee searching solutions on-line or waiting for answer.
- Technology related issues
- Coordinating technology issues/solution
- Business process issues – lack of technology process
- Turn-overs and training gaps
- Lack of documentation for both process and technology
- Approval and ordering process for hardware and software purchases
- Accounting process – invoicing, quotes etc for technology
Consider following: How much more revenue you can generate if you don’t have to deal with above items? 5%, 10% or more, how much it would be in dollars? Read further details…
Profit Margin: As a business owner, we all want to generate most amount of revenue with the least amount of payroll to achieve desired profit margin. Your lower return on investment in payroll and working on items other than generating revenue, will reduce your profit margin.
Consider this: If you have goals for achieve certain profit margin, can you achieve your goals by dealing with technology issues even without increasing payroll? How will new profit margin impact your company and you?
Understand 4 business decisions points:
No-Decision: Most business leaders consider no-decision means no impact on business but don’t consider opportunity cost. Technology issues don’t go away themselves, but they will multiple over time and will impact your business negatively in both revenue and profit margin. In IT department, no-decision doesn’t mean no-impact, it usually means high business impact.
Wrong Decision: We all know that how any wrong decision will impact business. The cost of any decision can only be measure in soft cost of any organization in employee productivity, business risks etc. There are so many case studies and reports that show, most businesses don’t recover from bad decision related to their major IT investments.
Delayed Decision: Regardless of your decision, your payroll must go on hourly, daily and weekly. You can delay your decision, but this will not recover lost time/money in previous weeks, months and it will continue for future days and keep you at lower profit margin & revenue.
Impact of Right Decision: Moving in right direction will always deliver rewards for revenue & profit margins. Consider following items as part of your decision process:
- Reduce Soft Cost: Focus on reducing soft cost in your business
- Catch all problems before they impact your people & business
- Training – Education: Provide training for your staff to get most out of your payroll
- Roadmap – Strategy: Build roadmap for technology and budget to align with business objectives
- Deploy IT Process to get consistence results
Need help for your decisions process? Get Clarity.
Partner with Encompass – contact our team
Also review – Impact on Revenue blog
Understanding cost – access cost calculator