Tuesday, October 21, 2008

Hard Measures: Quantify or Die

There are too many business processes, departments and personnel that serve no real purpose. Perhaps they were originally created to serve some arcane purpose that is no longer required but no one has thought to "close the loop" and repurpose them.

I remember one client who had a Records Department with three very lovely ladies, none of whom could tell you what their job required. Basically they came to work every day and filled the day chatting or browsing the internet. They were always eager to help me with whatever research projects or other tasks needed doing, but it amazed me how they always had free time to help. Within a few weeks time, I had the complany close the Records Department and transfer all three ladies into departments where there was real work to be done.

Hard Times are upon us, we must quantify every expenditure. That means you must create a solid business case for every expense.
  • Does it make sense?
  • Is it necessary?
  • What functions are performed for the cost?
  • Can it be done cheaper?
  • Can it be done better by someone else?
  • Can we outsource it?
And, if you cannot quantify the benefits of the expense, then it should be cut. Period.
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