If you have a growth mind set and have goals and objectives to reach, your most precious resource isn't money, it's time. You can't buy yourself more time, which is why you have to make every decision with timing in mind.
Technology cost is usually a small cost compare to other business expenses, however it impacts most critical items in business revenue and payroll. So why business leader are hesitant about their IT decision. Is it lack of IT understanding or correct information?
You can read previous blogs to understand IT Decision impact on Payroll, Revenue and Profit Margin. So then why business leaders tend to delay IT decision,
Here’s top 3 reason why business leaders tend to add more time into their decision
Budgetary Issues: Cash flow won’t allow
Some business leaders believe that they have an option to delay IT Operations and defer cost for future. However, the fact is that this is not true, IT Operational cost is simply a cost of running business. Technology cost is a small item compare to other business expenses, but technology impact or technology related soft cost is much higher cost. If business owners are not willing to invest in IT operational cost, they will end up paying many times higher than operational cost in IT related soft cost.
In other words, decision on hand is not whether to pay for IT Operational cost. Perhaps the decision is whether to pay much lower IT Operational cost or pay many times more in IT related soft cost.
IT is not critical, so no need to change current approach
Historically, IT was introduced in business to digitize account functions i.e ERP etc. And it made business sense for IT departments to report to CFO’s and bundled with other business expenses. Business leaders with carry over same perspective “we always done it that way”, consider IT as just a business expense rather than tools/means to provide competitive advantage - simply not aware of technology related soft cost. Technology related soft directly impacts top line – revenue and bottom line – payroll. If profit margin is not critical for any business leader, then what else would be.
Timing is not right
Let’s face it, there’s never a better timing to improve process and strategy. However, if it can impact your revenue and payroll by 15-25% would it change your priorities. This is they impact at the very minimum for IT process improvement. Working hard to generate revenue and compromising on low profit margin is never a goal for any business leader. Technical or process issues in business don’t go away by adding time, however these issues multiply and impact most critical items in business revenue – payroll.
Impact of Right Decision: Moving in right direction will always deliver rewards for revenue & profit margins. Consider following items as part of your decision process:
- Reduce Soft Cost: Focus on reducing soft cost in your business
- Catch all problems before they impact your people & business
- Training – Education: Provide training for your staff to get most out of your payroll
- Roadmap – Strategy: Build roadmap for technology and budget to align with business objectives
- Deploy IT Process to get consistence results
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