Is business as usual the best strategy for your organization? Often, this is simply not the case. But avoiding change is often deeply ingrained, as these justifications show.
- Doing nothing means I won’t make a mistake
- If I do nothing, it will cost nothing
- If I don’t make a decision and something bad happens, I can’t be faulted.
- I’m too busy. If I let things ride as they are, I save time.
- If I maintain the status quo, everyone will know what to do/what the policies are/what programs are in place.
- We’re in a leading position. Why bother to make changes now? We’ve got lots of time to act if necessary when the signs seem to point towards change.
- If I make a choice to change, there’s no guarantee it will work.
- We must make our current approach/software/process etc. work.
Sometimes, when leaders are juggling tons of daily and short term priorities, crises and fires, it can be difficult to find time to sit back and think strategically. In fact doing nothing is often perceived as the least cost effort. We would argue strongly that is not the case.
The cost of the status quo is actually very high for most organizations. In your organization, Employee Turnover, Customer Satisfaction and Employee Productivity, at their current levels, are likely costing you steeply each year. They just happen to be hidden costs in many cases.
So we developed a tool that you can easily use to estimate this hidden cost: The Cost of the Status Quo Calculator. In just a few minutes, you can estimate your hidden costs of Employee Turnover, Customer Satisfaction and Employee Productivity. So go ahead, challenge yourself.
1. Employee Turnover Costs
Employee turnover drains your organization of time, money, and talent. It costs employers 30-100% of base salary (depending on skill level and market conditions) to replace experienced employees. What’s your annual cost of employee turnover?
2. Customer Satisfaction Costs
According to research published in the Harvard Business Review every 1.3% increase or decrease in Customer Satisfaction scores = .5% increase or decrease in sales. What’s your cost of underdeveloped customer satisfaction?
3. Employee Productivity Costs
Are your employees as productive as they could be? Most organizations that we work with initially estimate that their organizations are operating at 70% of their potential productivity. What’s underdeveloped productivity costing your organization?
The Cost of the Status Quo Calculator can help you estimate your annual and three year costs.
Click here to get started.