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class3shockyesterday at 10:27 PM1 replyview on HN

This maybe for travel expenses but it's the same story for so many things

1. Start with a mostly manual, people labor based, system that works well (handing Joann receipts) 2. It begins to not cost-scale well with growth (department size increases) or a salesmen comes around with a service that offers to do the same thing for less (Concur) or both 3. The company switches to reduce costs 4. The new service is cheaper partly because it offloads work onto employees (filling out travel expense forms) and by cheaping out on the experience (not caring that the forms are not easy to understand and the system is annoying to use) 5. Employees now have to spend time doing a task they never did and their experience is worse

And it stays in this state forever because the observable costs (service cost vs some number of Joann's) are less. The fact that expensive employees (A department full of Phd's) are now wasting time and being annoyed by this system are not seen. The hours used to fill out those forms and lost productivity due to anger are never accounted for. Also the higher ups are detached because they still have their own personal Joann's taking care of everything.


Replies

sdoeringyesterday at 10:31 PM

I always say, that finance departments can easily calculate costs. But opportunity costs most of the time don't make it into the books.