Opportunity Cost

Opportunity Cost

We’ve all heard of productivity killers.

Those things that take us away from what we should really be focused on.

Everyone on your staff and is there for a reason.

A controller is there to help manage your accounting.
A salesperson is there and to close new business.
An operations manager is there to make sure things run smoothly and according to plan.

The concept of opportunity cost was explained to me years ago.

It is as follows…

When a staff member spends his or her time doing a function that is not core to their role everyone loses.

Opportunity cost is already happening in our personal lives whether we know it or not.

Most people don’t wash their own cars.
Most people don’t change their own oil.

And there’s a whole other group who doesn’t even mow their own lawn.

Your business life should be no different.

You shouldn’t be crawling under a desk working on a computer.
You shouldn’t be sitting at a computer loading software.
And neither should your staff.

At a basic level that’s what an IT company can and should do for you.

You’re paying good money for your people.

Keep them working on things that move your business forward.

Small deviations cause large problems.

Reference
https://en.wikipedia.org/wiki/Opportunity_cost

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