Let’s imagine you have 100 employees, just to make it a nice round number.
You have 10 individuals on your leadership team.
You have a CEO. A handful or so of VP’s. And a couple Assistant VP’s.
Not uncommon for an organization of this size, let’s say each person on your leadership team averages around $100K per year ($50/hr) in just salary. And this is probably on the low end once you figure in those higher leadership positions.
And let’s say your other 90 employees average about $60K per year ($30/hr). Remember, this doesn’t even include benefits.
Now, unless your organization is running like an absolutely perfect and well-oiled machine, you’re going to have kinks.
- You have some poor communication…Let’s say 10 minutes per day is wasted by everyone in the organization by unnecessarily having to go back to emails, tracking down people again, unnecessary meeting time, etc.
- Processes aren’t completely laid out so you have employees reinventing the wheel or having to develop them…We’ll say only one department of 10 people is struggling with this and wastes an hour a week for the year.
- You have some inefficient people in the organization that show up late, leave early and don’t put in enough effort…How about 25 people wasting 10 minutes/day with this?
- Your organization is wasting time trying to track too much unnecessary data…We’ll credit this to two people, one executive and one employee, in the organization and for 3 hours/week total.
- Time is wasted trying to solve issues repeatedly…This eats up a huge chunk of meeting time each week. We’ll say 30 minutes/week for 3 departments of 10 people
- And some staff is lacking accountability and ownership because of lack of direction from the top down…Assuming morale is pretty decent, we’ll shoot low here with only 15 employees dogging it by doing not much of anything for 30 minutes/day.
Want to know how much total money has been wasted thus far with the above situation? And remember, this is just time lost, not production on top of it…(*Based on 240 working days annually)
- Poor Communication = $128,000
- 10 Executives = 10 min/day x 10 people x 240 work days = 24,000 minutes / 60 min = 400 hours x $50/hr = $20,000
- 90 Employees = 10/min/day x 90 people x 240 work days = 216,000 minutes / 60 min = 3,600 hrs x $30/hr = $108,000
- Poor Process Documentation =$15,360
- 1 Executive = 1 hr/wk x 1 person x 48 wks = 48 hrs x $50/hr = $2,400
- 9 Employees = 1 hr/wk x 9 people x 48 wks = 432 hrs x $30/hr = $12,960
- Employee Inefficiencies = $30,000
- 25 Employees = 25 people x 10 minutes/day x 240 work days = 60,000 minutes / 60 min = 1,000 hours x $30/hr = $30,000
- Wasted Data Tracking = $6,240
- 1 Executive = 2 hrs/wk x 48 wks = 96 hrs x $50/hr = $4,800
- 1 Employee = 1 hr/wk x 48 wks = 48 hrs x $30/hr = $1,440
- Trying to Repeatedly Solves Issues = $23,040
- 3 Executives = 3 people x 0.5 hrs/wk = 1.5 hrs/wk x 48 wks = 72 hrs x $50/hr = $3,600
- 27 employees = 27 people x 0.5 hrs/wk = 13.5 hrs/wk x 48 wks = 648 hrs x $30/hr = $19,440
- Lack of Employee Accountability and Ownership = $54,000
- 15 Employees = 15 people x 2.5 hrs/week = 37.5/wk x 48 wks = 1,800 hrs x $30/hr = $54,000
And the grand total for lost time as money IS!!!……$256,640
TWO-HUNDRED FIFTY-SIX THOUSAND SIX-HUNDRED FORTY DOLLARS!!!
Now add this to the equation…
This is ONLY lost time, and doesn’t even figure in the lost production because of it!
What if for a fraction of this amount, you could get everybody in your organization back on the same page, bought in and moving in the same direction to drastically cut down this amount?
It’s time to see how EOS can do exactly this for your organization.
Schedule your FREE 90-minute meeting with myself and your leadership team HERE