Costly Operational Issues in Business and the Root Causes
Opportunity Cost & Dealing with NOT Well-trained Supervisors
My objective with this Online Training for Supervisors in Spanish, and very soon with subtitles in English is to help companies to reduce the unnecessary expenses, product wasted and time not well used, as wells as the stress that operational situations, challenges or problems could be occurring in your company.
The stories and cases that I am going to present are real situations of some of my clients, which I have had to modify a little to protect my clients.
In most of these cases, I helped identify and eliminate problems that companies faced due to poorly trained Hispanic employees in leadership positions. This resulted in companies saving thousands and even hundreds of thousands of dollars per year.
Today I want to start by talking about what OPPORTUNITY COST is.
Both in our personal life and in business, every time we do something where we invest our time in an activity, we are giving up doing something else. And this has a cost, or benefit that we are not obtaining.
To clarify this concept, which I am sure many of you know, I am going to explain a couple of examples.
In my personal case, if I sit down to watch television for a couple of hours daily, it may have a benefit or several. Perhaps it will help me rest and distract my mind.
But on the other hand, if those two hours a day were to use to learn something, maybe a new language, maybe how to be more productive, etc. the benefit of this would be much greater than the benefit of just watching television. And this is the opportunity cost.
In other words, I am giving up gaining something bigger, maybe it is knowledge, money, dedicating myself to other more profitable projects, or dedicating my time to more important personal activities, such as being with my family, doing sports or dedicating myself to help some cause that is my passion.
The following is an example, which I have heard several times, during my professional life as a business consultant and leadership trainer.
When a business owner or manager is spending many hours a week talking with an employee in a leadership position, and above all is solving the conflicts and problems that this person is creating due to lack of adequate knowledge about how to be an efficient supervisor or a good leader. This time spent has a cost.
“But what is worse is that the distraction in dealing with the complaints and problems caused by that person who lacks leadership skills, steals the owner’s time from being dedicated to more profitable projects”
This is the case of a person who called me a few weeks ago. When I asked the manager how many hours he was spending dealing with conflicts and complaints caused by that supervisor, and talking with that person, he told me that it was approximately five hours, and sometimes more per week.
If we consider that this person costs the company $ 60 per hour and that he is spending five hours per week, or perhaps more, this means that, per year, considering in this case only 50 weeks per year, the company would be spending more $ 15,000 a year to deal with this situation.
This $15,000 is being spent on this problematic supervisor instead of going towards more profitable projects
And as I said, the opportunity cost could be much higher, since this person is putting aside projects that could generate a much higher income for the company.
The reason for this exercise is to realize that when the situations and problems of the company are annualized, we can recognize how important or not it is to find a solution to these challenges.
In this case, you could start by investing in a professional Online Training for Supervisors in Spanish, and leadership training for that person who is causing so many problems.
Sometimes it will be required to mentor them, and, if after having invested in the development of the leadership competencies of this person, a positive change is not seen, perhaps that individual will have to be replaced by someone who has the knowledge to be a true supervisor or leader.
Typically, the investment in an Online Training for Supervisors in Spanish is far less than the time spent dealing with the conflict, especially considering the lost profit or opportunity cost for actions not taken due to this distraction.
My question to you is, if you are going through a similar situation: how much is your time costing the company per year dealing with people in a leadership position who are not well trained? And what other projects are you failing to do that can be more profitable for you and the company?
If you want to know more about the Online Training for Supervisors in Spanish and also the assessment tool to determine the cost of situations or problems you have in your company and the causes of these, I invite you to contact me.
Thank you for your attention.
Eduardo Figueroa, MBA
President, Author & Leadership Trainer
New case studies of productivity with high ROI
Assessment tool to estimate the annual cost of the problems and determine their causes, in your company
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Training in Spanish Ensures Better Understanding and Better Performance!
Online training course designed for Hispanic supervisors and leaders in Spanish with subtitles in English
Trainer & Author
My mission is to help companies to be more profitability by bringing out the best in their Hispanic team of leaders and employees.
I achieve this successfully by training participants in their native language (Spanish) and by been a Hispanic.
I have developed on-site training sessions and online programs, in Spanish, that are practical, effective, easy to use and affordable. With great ROI, investment-benefit.
I have the education, knowledge and over 20 years experience, helping clients in manufacturing, agribusiness, hotels, all kind of service, restaurants, and construction, here in USA and Mexico.
I hold a Masters Degree in Business Administration from the Instituto Panamericano de Alta Dirección de Empresas and a Chemical Industrial Engineering Degree from the National Polytechnic Institute, both in Mexico City.
Hispanic Business Consultants © – Eduardo Figueroa 2020 – Supervisor Eficaz