OnPoint, LLC

The Business Value of Speed

When we think of business value, we often think in terms of Return on Investment (ROI).  We may undertake a project with an eye toward reducing head count or otherwise leveraging the productivity of employees.  This view of business value has some inherent limitations.  The project costs often exceed the original budget, thus diminishing the ROI calculation. When the system is implemented, the anticipated headcount reductions are rarely taken.  Instead, the efforts of the employees are shifted to other activities which may or may not be more valuable.  More importantly, we are not increasing business value by more efficient work on products or services that our customers no longer want.

In today’s rapidly changing competitive landscape, speed can be far more valuable than squeezing the last ounce of productivity from administrative processes.  Consider the business value of launching a new software-based product six months earlier, responding to a customer question immediately rather than requiring a call back, or completing a customer project in a month instead of a year.

Should you adapt your metrics to focus on speed over mere efficiency?

 

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OnPoint, LLC