The Hidden Costs of Inefficiency

Business, Business Process 3 Comments »

There are literally hundreds of processes that we as employees partake in every day as part of our doing our job. These can vary from requesting vacation time, asset tracking, dealing with customer queries or copying information from one system to another, to name just a few. How we do each of these processes varies substantially from one organisation to another. The way in which we do some of these tasks can be improved, leading to a better work experience, improved productivity and a reduction in costs.

Inefficient Processes

Imagine that we need to copy some data from one system to another - e.g. a paper form that has been completed that now needs to be entered into a couple of systems (a database application and a financial system). This task may only take 30 minutes a day, which doesn’t seem like much. However, that adds up pretty quickly to 2.5 hours a week or 130 hours a year, and that’s just for a single task! Automating this task so that it needs to be keyed in once and then entered into both systems at once can save at least half the time it would normally take.

Another common scenario is that there are many manual processes that are not documented and contained in the minds of a few employees. This is often the case with long serving employees. They then become a pivotal part of the process and without them no-one knows what is required or how to complete the process. The process quickly becomes dependant on this one employee.

Associated Costs

Many of these costs are hidden from employers. Top and middle tier management are usually unaware of the associated costs of these inefficiencies. It can require some complex analysis to come to an actual cost of wasted time. The cost includes accrued overtime, time spent finding people required to assist or time wasted in finding the person who is responsible for the next task. These costs may be hidden, but they are very real.

Some will say that this is what we pay our employees to do - spend time on completing these tasks. While I agree with that, there is more to it - as employers we should strive to make all of the tasks that our employees have to do as efficient as possible, for a number of reasons:

  • Decreased productivity. Saving your employee half of the time to complete monotonous tasks will free up their time to get other work done. In Canada today, employees are working increasingly longer hours and taking less vacation. This is a dangerous precedent that should be of concern to all employers. It is not a sustainable practice and can lead to employees burning out and quitting their jobs. When people are tired they end up making mistakes that should be avoidable. Their level of productivity drops and as a result their performance suffers.
  • Attracting new employees. In Canada today, there is a general shortage of skilled workers, plus the fact that the majority of the workforce will be retiring within the next 10 years, is an issue of grave concern. Labour costs are increasing and finding the right employee for the job becomes a time consuming and expensive task. Once you find the “right” person, are they going to come and work at a firm with outdated processes requiring tedious manual tasks? I would be surprised. If they did, you would have to ask yourself whether this was the person you wanted to hire in the first place.
  • Island of knowledge. With one person knowing all of the processes and how to complete the tasks, the firm becomes dependant on them. Should this person decide to leave or have an accident, the process comes to a complete stop. The time and effort required to complete the tasks is enormous and the chance of making mistakes is all too real.

Benefits of Process Improvement

With process improvement comes some valuable benefits.

  • Higher quality of work. With an automated task, the chance for errors to occur is reduced. Employees can deal with more tasks and time management becomes easier. Rules and validation can be built into a single location affecting all instances of the process. The process tasks and activities becomes standardised and the results are consistent regardless of the employee responsible for the outcome.
  • Reduced risk. The enterprise is no longer dependant on the process expert to be able to complete the task. Training of new staff becomes easier and the business can repeatedly complete all tasks within a given time period.
  • Process improvement. Activities and tasks can be audited and it becomes easier to analyse trends and identify areas for improvement. Employees become accountable for their tasks. Escalations can be built into the process that will notify those responsible that some tasks are slipping and there may be a need for more resources to be allocated to certain areas within the process. Many of the process automation tools these days have the ability for people to set Out of Office notices which will re-route their tasks to others. This ensures that no task is left waiting while someone is on a well deserved vacation or out of town.
  • Process documentation. The automated process becomes a documented process - the steps of required activities can be viewed in one place and it is easy to resolve questions about what the next step should be. Some of today’s process automation tools have documentation functionality included in the toolset. This can be a great way to get a formal process document started.
  • Easier to automate additional processes. Once a single process has been automated, the process to automate tasks becomes known and can be improved. This is especially the case once a process automation framework has been established. With each additional process being streamlined, the return on investment associated with process automation increases. Many of today’s process engines provide scalable solutions allowing for the enterprise to grow without the need to hire many new resources. With the lack of available personnel and high labour costs, the firm’s bottom line is better off as well.
  • Reporting. As soon as tasks, activities and process associated data can be tracked, it becomes possible to report on them. This is a huge benefit, especially to management, who can use this information to make informed decisions about business strategy and planning.

While some of these benefits are obvious, others are less so. Yet they are all key to the continued success of a company’s ability to do business. Often, during the post-implementation debriefing process I’ve heard decision-makers question why this process streamlining exercise wasn’t done sooner. While that is a good question, hindsight is always 20-20. It takes a certain amount of fortitude to ask “How can we improve the work we do?” and that can be lacking when we’re working long hours to complete the tasks that we are required to do on a daily basis…regardless of how inefficient the process may be.

, ,

View blog reactions

Bookmark and Share Bookmark and Share
WP Theme & Icons by N.Design Studio
Entries RSS Comments RSS Log in
nutra sea homepage dorian gray imdb thrifty car rental cognamine total anni nuerontin dosage ashcroft hsbs india bavaria calstrs loan catz in hatz imelda marcos philippine machines top flyte pall grant wholesale ocfiles moirai chacha borders book and music nbc13news picture of spermicides champps ag-hvx200 wjec website censorship comptia loyola high school los angeles animal kyolic liquid garlic herb alpert lyric signals over the air lyrics trigliserides wizardworks chi chi hentai starfuckers ecowas countries cryocell szeged lap hu kmtt 103.7 tucker max daewoo lanos hatchback global warming springtime of my life sh piranesi cows rail gun alien newts tale reba mcentire dvd she can t hear ebay schrade knife ac3filter 0.70b adult baby treviso acadia hospital bangor waterproof hand forged bowie knife dinfos alumni ipo vistaprint dough play receipe barbie sam hui disrobing of christ nutra acrylonitrile catalyst deactivation exstacy kawasaki kdx relix music magazine ka bah bios rotwilers pictures jacko pastorius precose side effects crib please homedic ipview news about ortega highway 2004 suzuki gsxr600 whitstable cam los patos ppo blueyonder bishounen tutorial himalayan times metal buckets fbb pants campaign guadalcanal ssi ahdra working tindamax 500 mg boyes hot mail springs leptin thesis summary of a year down yonder citizencane.org sarkar ceramic netcourrier at rest iarc who nutriclean devine texas acreage for sale cvp day isyss night everton diverticular colon wwf tatanka xanadu vinca quartet resa headlice edification edify kxan weather ndiswrapper install pbb.com dxva_sig.txt shm greece pelion suburban homeboy marishka hargitay specsavers bacopa caroliniana camoplast a1 dvd ripper fish grade oil pharmaceutical gackt official site almejas y mejillones salenas v325 farkel dice askjeevs kids crumping dope war pocket pc mike strickland lac seul lodge anaconda speaker enzimas bonnie jackson immobility allowance internalization channel 5 wnyw not confident copy binder save 6.fp7 coded footwear oki data printer driver crestwood local school deer park vocabulary workshop book answer hampster fb pctel amr hurricane form historical cohort study mathew mcgrory pentominoe homeland security act temperature dr nysna jiffy bags roronoa zolo xylem skivvies blacksburg apparition of the blessed mother electron mass choir ijsselmeer backlight gtefcu restrained me for me not because lyrics habelt eleniak baywatch isaac albeniz flos usa afc holcroft brief candle mental health bremer ryland inn tekenaar + illustrator telusmobility airsnare download masschusetts map caving john deere cricketgames.com babur brasserie speck nano skintight summa health system wsftp wedgies bianca vet app uk garment marking wax yamoto hosstraders cheat for tomb raider 2 for play station drifter danze sheridan fibromyalgia and chronic fatigue utep score angeles los sandwich plies icelandair cheapest low airfares capuchin crypt boombox lyrics mannington hunt scenes hopi observer candystand form feed gundamseed destiny marisa jaringan komputer dunwoody atlanta fluoroscopy suite orion spacecraft feasible medical prescription sterilizing lefteris gyro hyakugojyuuichi eurynome in the odyssey research miessence skin care harkens theaters eggnog cookies injured mullion co anshutz air rifles mimaki printing totd chevrolet megazord urethra inflammation kill bill daryl hannah lee mendelson topless yarrt scottish creamiesurprise mapss industrias lider valencia venezuela zodiacul chinezesc fiscalite how do you simplify comely comix bell howell inserter omr doskocil gun cases lexel retroactive coverage futurama logo terex sleepers banjir mekah heartburn birth control pill statistics nancy drew danger on deception island hints the earth's core band drench slouch www sers state issacs kino drammen vedic wvde green beans dexatrim result paulina lake taipai tower esca ny dreamtime perazzi mx5 ibc personal choice busty ebonies solitudes flaccid penis picture hypnerotomachia peo iews sucking reflex computer penang panzerleader powerex compressor vice sity china maos dave bush cfnc.edu buy nurofen online mkboot cita en quirofano de em escolas italiana lingua siena lagniappe new orleans palabok hamscope download tabata weiand guide interior buy and sell houston chronicle general manager king arthur flour software engineering tutorial stanford volleyball ahdrack calibration summit gps all inclusive bahamas vacation buckram hat frame iflims uncensored roses roi international conscience kaylani lei video unitard doll house muslim television ahmadiyya grandia ii my self indulgence unlock dhr verdi nv senoras cytoxan lupus brazenhead columbus simply-gorgeous pumping fffm free bangus nutricion jewell kilcher nude scaevola stove taylor wood loquat tree goatlocker aspirin silk flowers orchids and plants halloween siggies coloumb nachas unlimited arguing bone spurs spinal hotel in panama city beach fl 3.03 fugawi driver for mitsumi cr 4804te nip tuck episode synopsis maggie cheung moonshiners jamboree horny hores newgrouds leah remini pic calcium chloride and hyperkalemia tuliptree mountaineering expedition girl expats in malaysia flowbee haircutting system boces suffolk outdoor country music jamborees events schedule canoe kayak cart loyola gsb geils granny board fusta mcmanus industry two poc body kit ceclor 250 mg marine palace awesometown thanatophobia nobility in england naf part raypak catatonic aco comedia download emule filmes humor storex industry lapdances jets hypermesh visualboyadvance games letstalk lexus chaud livraison plat weddingvows bastet city of perth opalis jobengine gucci the band dish 500 twin lnbf jeannie ortega / crowded korean tv drama series arvey code talkers of wwii sexual intercourse postions viceroy roy veronique houghton free domain name registration linksys wcg200 airport avistar newark neocons murry head fei han tzu lawrence twp challis grundfos http support.microsoft.com default.aspx scid kb en us 324767 de hunterxhunter subtitulos mortise antique cocktail dress womens starwarskid.wmv events leading to shire pharmaceuticals group dangerdaves.com pharm tee shirt bbr football tcu ticket bishounen realm abf staffing ask a realator fyrs detrol indiana campgrounds krumping dance christian rock lyrics buckfast bee dss-newbies danielson david la marche 20040103094552 article beritasawit bharian emedia.com.my m saturday alpine mrp m200 penreco gel wax logistics marianne weber baztab news crystal wine decanter b12 under tongue edexcel uk yellow m1a2 holcim open offer bailer research woodworkers antifilter orkut aquavit membranous ktvx salt lake city czusainc.com digemons behringer xm8500 lesbians novgorod moles liter cinamark theatre smart card reader rawkfist lyrics miss underwire aprilla 1996 make your own playdough nandinas b en language language nima nl nl site cannabis culture magazine fugitive task force rpri-cbl-kit sssssssssss justin sandal negril resort concealment drawer jim chambers flintlocks dm9102af fix n2 pansat halkidiki navarro pay pal varicoceles youngboyzz 50 cent tego calderon nyctophobia rapesection iconography idn pro kettle highmark quad euthanaisa facts national psoriasis foundation quezon city map sean kelly cyclist atavism colorblind lyrics chicken redwork ip address trace