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What Will You Do With the Time You Save? May 7, 2014

Posted by Tim Rodgers in Management & leadership, Process engineering, strategy.
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When laptops and cell phones and remote access first emerged as an option for office workers a lot of folks tried to justify the incremental expense by arguing that they would be so much more productive as a mobile worker, no longer tied to a specific cubicle. Some even tried to calculate an ROI based on quantitative estimates of labor cost savings or higher efficiency. The arguments all seemed to be based on the idea that we would be able to get so much more done by feeing ourselves from the constraints of a physical office. I suppose we really are getting more done. Mobile technology has become the standard for the majority of knowledge workers and we don’t think twice about the cost of the hardware or worry much about the security of remote access.

Lately I’ve been reminded of those claims of the higher productivity of mobile workers because of the current interest in lean production and business process improvement. One of the reasons that some people cite for resistance to these kinds of changes is the fear that it will lead to layoffs because fewer people will be needed to manage the new processes. We hate being overworked, but apparently some believe that it comes with job security.

First of all, there’s no job security at a company that’s rife with waste and inefficiency. Unless you’re a legal monopoly, competitors will figure out how to operate more efficiently and eventually your higher expenses will make you un-competitive and unprofitable.

Second, why does it have to be a choice between inefficiency and layoffs? Why would anyone assume that higher productivity automatically guarantees workforce reductions?

I’m not naive, I know this does happen. If you have five buyers in your purchasing department and you figure out how to get the same work done with four people, then you have one more person than you need. But, that’s a narrow way of looking at the issue. You have one more person than you need for that job, but you also have one more person that can be assigned to a different job. In many cases there’s some other part of the organization that’s starved for resources (assuming the skills are transferable), or a project or strategic initiative that hasn’t been able to get off the ground (including further process improvements).

If you save money as a result of process improvement, you can choose to put that money in your pocket, or you can invest it elsewhere. Yes, you can reduce expenses by cutting headcount, but did you consider using those resources to help increase revenue, or accelerate time-to-market, or improve quality?

Certainly you shouldn’t expect much support for changes that lead to higher productivity if it’s understood that there will be layoffs as a result. I don’t remember big layoffs when we implemented mobile technology. We found more work to do.

 

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