Monday, November 03, 2008

Soft costs for a corporation

I've said it before and I'll say it again:
The big business Management Advancement (fad) of the 2010's will be to somehow estimate and control soft costs.

Example:  Through continuous mergers, we have not used the same systems for payroll, time recording, etc. for any two of the last 4 years.  IOW: lots of churn.  The inefficiency that this creates is enormous.

Additionally, though turnover produced to gain lower labor costs, our labor has become ultra-inefficient.  So, rather than having 10 units of work for 10 dollars, we're getting 5 unites of work for 8 dollars.  Saving some money to be sure, but at what real cost?

Some really, really smart people are no doubt working on this today, and we'll eventually get there...  I hope.

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