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Why "Expensive" Is Actually Cheap

People are constantly looking to upgrade their businesses, but unfortunately, they tend to do it only when they are addressing a related problem. Instead of upgrading the internal network when things are fine, for example, they don't think about it until one of the primary servers or databases crash. Unfortunately, upgrades take time, and nine times out of ten, a business cannot wait for an upgrade while they are "down" from a burned out important computer.

When the server goes, it's gone. If it's not under warranty, you're going to be in a world of hurt.

This is when management realizes it's time to upgrade many aspects of the network, but won't, because of two reasons: cost, and time. Instead, they put in an expensive "patch" to get things running.

Networks Of Patches
Most modern businesses are just that -- networks of patches. You "patch" your main server by buying some ridiculously overpriced (and discontinued) hard drive. For the price you paid for it, you probably could have purchased a whole new server, complete with faster processor, bigger hard drive, and a brand new warranty.

Maybe someone vital leaves your customer service team, and you can't wait to find a great replacement. You instantly promote someone within who's underqualified and inexperienced. They learn what they must as fast as they can, but unfortunately, they don't quite measure up. Likewise, they're working a job that's requiring many extra hours (as they can't do things as fast as their prior counterpart), and they probably know they're not making as much money as the other person was. Promoting someone in a rush, and forgetting to give them the raise associated with it, is unfortunately the rule, not the exception.

Patches are a loss to everyone involved. In the end, they are not solutions, and leave holes in budgets, staffing, and deliverables.

The Lifespan Of A Patch
When you replace a business asset with a patch, you're commiting to two big things:

  1. A Temporary Solution - Patches will eventually burn themselves out. Whatever you install now is going to be completely thrown away after a certain amount of time. The employee who's "filling in" will eventually leave even if you promote them because, quite frankly, you're going to not pay them what the job is worth.
  2. Higher Cost - Patches are expensive, and once they're gone, require the use of another patch, or of the full replacement you should have used in the first place. Either way, you're going to spend more with the patch, and throw all of that money away when you're done with your temporary solution. In many cases, patches cause even more problems (read below), which will require more patches, and more expenditures.

A patch will not last. Knowing that the lifespan of a patch is shorter is key to knowing why you should avoid using them at all costs.

Patches, like Joe Isuzu, promise more than they deliver.

And Trouble Rode With The Patch
When you install a temporary solution, you're leaving holes in your business somewhere. So that assistant account manager is promoted to account manager, but now there's an assistant position open. It doesn't get filled right away (if at all), because that recently-promoted assistant will continue "doing" the job.

In all reality, that person is not doing either job 100%, as they're not good enough at the new job, and they can't give the time necessary to the old one. Work slips through the cracks, and though you may not notice that phone calls aren't being made, your clients will.

Likewise, whatever caused your database to crash is still there. If you're using even 50% of what your network can support, your network is already too limited. Whatever is causing the problems is still being problematic, and it's only a short matter of time before there's another server casualty.

Plan To Break, And Save Money
You should not ever think everything is fine. At any given time, 100 things in your business are going wrong. Something, somewhere, could be done much better. Someone is being courted by a new company, and some ball bearing in a computer fan somewhere is getting ready to fly out of the machine.

You already know these things are going to happen! Don't wait for them because you "can't afford" to do it now. When they break, you'll spend even more money that you already "don't have." You say it's "too expensive" now, but in actuality, it's cheaper to fix the problem now, before it hits.

Plan For And Build Replacements
For every key job in your business, you should have someone groomed and trained to take over the position fully. One or more assistant account managers should be trained to do the job of the account managers. Do this when work is slow, and if work doesn't seem to be slow enough, make it a top priority and jam in that time. Hire temporary employees to cover aspects of the jobs if you have to while your people are teaching each other these new skills.

This will help you not just when someone leaves the company, but if someone goes out on short-term leave in exceptional situations, or even on sick days.

Have backup servers that can pick up where one server left off. Backup all your data not just on discs or tapes, but have full duplicate machines that are working side-by-side with the main one. When the main server crashes, the backup won't even miss a beat. When this happens, your IT staff can fix the main one, taking the time they need to do it right the first time.

Plan For And Build Future Solutions NOW
One big Boston business is building a library to house all of their digital assets. Unfortunately, they're only doing it for one department in their company. By slightly modifying the library now, while it's in the planning phase, they can make it a company-wide solution that can meet the needs of every department.

Unfortunately, they say it's "too expensive" to do that now. When the time comes that other departments need access to the library, it's already going to be too late. They'll realize they need the tool long after they should have been already using it, and it's going to cost tens of thousands of dollars to get programmers and planners hired to modify it. Likewise, by the time it's modified, they may find that the hardware and software they're using isn't appropriate to handle the newer data, or the new volume of traffic. In the end, they may find that they're going to have to rebuild the entire thing.

If someone can look at one of your efforts now, and identify how it would be beneficial in the long run to build in things that "would eventually be nice," more than likely it means those are things that "will eventually be needed." Build in room for growth *now*, so that when you feel the need to grow, the room will already be there waiting for you.

Most Importantly, Ask These Questions ALWAYS
Don't wait until you have a new project to ask what you could do better, ask those questions now and always! When faced with a question, figure out the best way to solve it. When planning a new program, service, or asset, ask how it can benefit every aspect of your business.

As a manager, you should take time out of every day to talk to people in other departments and positions about what they do, what they're doing, and what's on the horizon. Ask them why they do things the way they do, and how they think they could be done better (and if they think they could be done better).

Talk to your staff as well as people in other departments and tell them about things you're doing, and things you're going to be doing. You may find out that other people can benefit from your work, or better yet, you may find that they've already built the tools you need -- all you've got to do bring it into your department and call it your own.

By realizing that thorough solutions are necessary investments, and not expensive luxuries, you will save your business time and money over and over again. In addition, you'll avoid problems long before they start, and along the way, you'll be making things better as your company learns how to work better internally.

You should always be learning more about what's going on in the business world. It's only a matter of time before these issues land on your doorstep.

Take a look at the CEO Refresher for other articles that may be helpful to you...

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When was the last time you spoke with anyone on your senior staff about where they'd like to go next? Is it possible that you have yet to train your replacement?

Meet individually with your senior staff and discuss with them their professional development. CEO's aren't born, they're made. Who are you going to pick to replace you?

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