True cost of attempt (cost of time)


11/27/20131 min read

Acquaintances regularly contact with the offer to try something in the organization.

I have already explained several times in detail while guiding a person, but I see that a more systematic approach should be taken.

So, how much is it worth to "try" for the organization.

This applies to new software, new workshop, new everything.

The cost of time from the manager's point of view, the cost of an employee's hour of work for the enterprise

That is, to try a new program for 100 employees, if each of them needs 15 minutes of time per month and the hourly cost is $6 (taken from the presentation), it costs $6*0.25(15 minutes)*100=$150/m * 12 months = $1800/year .

This is without taking into account other third-party costs of discussing, solving problems or reporting on them, which is actually the purpose of the "attempt".

This is one of the main reasons why innovators are rejected by enterprise managers - not understanding the value of time, or rather the difficulty of comparing possible advantages and obvious disadvantages. From the point of view of psychology, a person will always choose the lesser good, and not the possible greater evil in a choice situation according to the known theory.

The question "how much it costs NOT to try" remains open.

And this is the topic of another post.