Here are three things that drain business profits due to poor information management:
Time and resources are wasted daily as staff are not able to access information instantly.
- If staff is searching for electronic or paper documents to use it, refer to it, reply to queries for more than a couple of minutes your business is losing money.
- If someone spends on average ½ hour per day on searching for stuff the business is funding 3 weeks or 6% of salaries of unproductive time every year.
- There are many cases where staff members spend 50% or more of their time searching.
Staff need to recreate documents because the original cannot be found or is on someone else’s computer
- If staff recreates one report or presentation per week taking on average 2 hours to perform the task the business is funding 2.5 weeks or 4.6% of salaries to redo work that is already done.
Staff do research, collate information and prepare reports for management. Management takes a cursory look at the report and ignore the findings. This produces phenomenal waste in time and effort which directly impact cost.
- Many reports and studies are produced; specifications created; documents prepared this is simply not used in the business.
- A staff member can, for example, receive an additional £500 bonus per year (based on average salaries) if unproductive reports are eliminated. This could be significantly more for research and report intense organisations.
Stop the Leaks
There are many more leakages due to poor information management. Just taking examples above, a proper information management system that will reduce Credit union agent wastage as highlighted above could save the company £10 000 per annum per staff member.