The Cost of Disorganization

By Michelle Panzlaff

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From first hand experience and by reading many articles and reports I have learned just how costly it is for a company to be disorganized.

One of my most heart breaking experiences as an employee was when one of my supervisors told me to "Lower my standards and not expect too much". My heart sank with those words as I was hired specifically to implement new coordinated and corrective procedures. So there I was, left powerless by lack of support. Needless to say, I, like others before me, had to walk away from this position. I found out later that some walk away after mere weeks of working in that role, that made my 6 months seem like eternity.

In defense of my immediate supervisors, they were just doing the best they could to deal with the situation. The fact was that organization and teamwork were not a priority, in fact it seemed making money was the only thing that was focused on. I still find that incredibly ironic since losing money to poor organization cuts into profit and company credibility.

In this particular situation I was witness to thousands of dollars in loses each month, let along each year which in itself was heartbreaking to me. Yet, each proposal I brought forth, for example the formation of a action committee or implementation of order checklists to catch possible errors, where not supported by management. The same team that wanted loses reduced yet didn't follow through on agreed actions to resolve the issues that caused them. It was to the point where going to the dentist for a root canal seemed less painful for me.

One of the best articles I recently read talks of a talented and skilled fundraiser who walked away from a position working for a state senator after only working 6 months. She was faced with a non-stop series of "emergencies" that forced her to stay late many times and things were not improving. Her boss was just "disorganized" and just kept piling the work on her desk without much thought to it.

This situation is somewhat different than the issue I faced yet is derived from same underlying issue of being reactive and not proactive in approach to problems that may occur.

It is very hard to feel efficient and productive when things are not organized and your supervisors don't work with you to help make changes for the better. I understand why that woman walked away because I have been in her shoes before.

Now, lets take a minute to talk about jut how much being disorganized costs. Goggle search it for yourself and you will see many supporting and shocking articles that talk about this in great detail.

Grab your calculator, lets go...

Average hourly wage of your employees: $_________ x 1 hour lost each day. Take the hourly wage above x 240 days. (48 working weeks is 240 working days) Now times the number of employees = $________.

Don't have your calculator out? Let me give you a better idea...$15.00 x 240 = $3600.00 x 10 employees = $36,000.00!! Ouch!

Now, what about that "turnover" issue...did you know statistically the cost to lose an employee is 25% to 200% of their annual salary? Between loss of morale, service disruption, absenteeism and costly mistakes made during training it all adds up. Again, don't take my word for it, take a look and you'll find many an article written about this, I promise.

Lets review one sample: Average salary of $40,000.00 = $10,000.00 to $80,000.00 for every employee that walks out the door. Ouch again!

Lets review some symptoms of disorganization:
• Stress at work leads to physical illness, which leads to time off work, which leads to lost productivity, which means a loss of revenue.
• Inadequate paper or electronic trail systems lead to poor follow through and communication with customers, which leads to lost business.
• Poor productivity from overlapping tasks when there is lack of clear communication.
• Purchasing items you probably already have but can't find.
• Lost income from forgetting to invoice a client.
• Poor growth, too much time spend "spinning wheels" to fix mistakes cause by disorganization and poor communication. Wasted time = wasted money.
• Last minute jobs creating overtime that could have been avoided with better planning.

Next, what are a few signs that it's time to make a change.
• Desk cluttered with files and equipment. Results of a poor filing system.
• Procrastination. It's either the fear of failure or simple indecision.
• Being reactive instead of proactive.

Don't wait for something to happen, make something happen!

There are many great tools at your disposal, including personal organizers. Getting organized is easy if done methodically. The bottom line is that being organized means things run more smoothly which then boosts moral which then increases productivity which then affects the profitability. It just makes sense.

The experiences I have had personally have led me to become an organizer. I am here now to help those that are ready to make changes for the better and who understand the bigger picture and want to save some money in the long run by getting organized now.