A prospective client asked “what do you
charge by the hour?”. My response…”I don’t”. The prospect then asked
“then how do you determine how much to charge me?”. My response “By the
value you desire me to deliver using my knowledge”.
Knowledge needed to ring up sales at a cash register is different
than knowledge needed to engage more customer that will ring the cash
register or reduce lost productivity which improves business efficiency.
Which has more value?
If your business is wasting time, effort and energy “producing
things” and causing customers to waste time, effort and energy
to interact with your business then you are wasting money. If someone
had the knowledge required to help you reduce the waste and improve
productivity how much would it be worth?
Let’s say you employ 50 people at an average payroll cost of $52,000
per year per employee. Let’s consider the lost productivity of
employees simply misplacing or not having relevant information (which
precedes not having the right knowledge).
Calculate
The Cost Of Lost Productivity
|
| The information you provide is not
collected by our company in any way.
To get started, simply fill in the values requested below (do not
use dollar signs or commas). The results will show how many
hours you’re losing per year– and how much those hours
are costing you— due to the inefficiency of lost
information.
To calculate the cost of disorganization for your department
or company,
please indicate number of employees and provide an average figure
in the other fields.
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| Average
salary |
|
$ |
52000 |
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| Number of
employees |
|
|
|
| Number of
non-working (vacation) weeks/year |
|
|
|
| Number of
hours worked/week |
|
|
|
 |
| What
Lost Productivity Costs You or Your Company* |
| Per Year |
|
$ |
6760 |
| Per Month |
|
$ |
563 |
| Per Week |
|
$ |
130 |
|
*Calculations
based on the average amount of time an employee
wastes per day looking for misplaced items.
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|
|
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That would represent lost productivity valued at $6,760 per employee
per year ($338,000) and this doesn’t include the cost of creating lost
productivity for customers and prospects (which represents even higher
cost per customer than employee.) How about revenue gains from giving
customers more productivity?. What is that worth?
Social Productivity Factors Driven By Knowledge Assets
Finding solutions that enable us individually and organizations
collectively requires knowledge outside of an existing ecosystem. The
ecosystem of any organization is largely influenced by the knowledge
assets which rest with the human capital within an organization. Human
capital is considered the vital engine needed to support any
organization. It is this “capital” where innovation and continuous
improvement comes from, if you know how to tap and use it.
The challenge of any organization is learning new knowledge that
maximizes human capital effectively and efficiently. New knowledge
typically comes from the outside but can be tapped inside with the right
“social encouragement“. Social encouragement is not
typical to corporate containers where power and fear steal “social,
intellectual and creative capital” that rest within the human
capital.
Social Business & Knowledge Assets
All this social stuff goes way beyond marketing and advertising which
seems to be in vogue for the moment. The “social business”
model is one where the ecosystem is learning how to tap all the
knowledge assets resting in the human capital. Tapping this capital can
be accomplished using social technology beyond
marketing and advertising. Consider the knowledge assets that can be
tapped if your culture and organization adopted the social business
model. The productivity gains rest in functional roles and departments
such as:
- Marketing, advertising and public relations
- Customer service
- Hiring and recruitment
- Workplace Collaboration
- Outsourcing
- R&D
- Operations
- Communications
- Finance
- Management
Now to optimize productivity one must consider the implications on
human capital. In order to make these considerations one much engage
with the humans who hold the capital. Doing so is something that
requires knowledge assets not typically contained inside the corporate
walls. If the knowledge assets where there well more and more
organizations would be making significant strides in productivity and
most aren’t.
The problem with most people claiming to be social media gurus is
they are selling task oriented work, not knowledge assets to be
transferred internally for everyone’s benefit. I don’t sell
knowledge by the hour but not having the right knowledge cost you
productivity by the hour. My cost is less.