Most businesses realizing that their systems and/or processes need improvement look around and total up the costs of making the changes. What will new software cost? What will it cost to train 5 new employees? What will a bigger warehouse cost me each month? It’s easy to quantify those answers, because you can get on the phone or on the Internet and get quotes that put it in green and white.
What’s harder to quantify is the cost of not changing. Just keep doing what you’ve always done is safe, right? Studebaker probably thought so…
Each of the “what does it cost to?” questions should immediately bring up an equal and opposite “what is it costing NOT to?” question. What is the old system costing in lost productivity? What is it costing in employee morale and stress-induced errors to not make sure that employees have the tools and training they need for the company to be the best at what it does?
These numbers affect the bottom line just as much as the numbers on the checks, and good decisions take into account all the facts.