Some machinery manufacturing enterprises always encounter bottlenecks in the development process, feel that the operation cost is high, but it is difficult to find the cost, we call it "hidden cost".

This is like the hidden disease of the life body, which cannot be cured for a long time, and makes the operator quite headache.

If finding these hidden costs is like finding the pathogen, then the next step must be to take off again.

If we can sum up a variety of "hidden costs" that often exist in enterprises, we can compare them with ourselves.

In particular, we have summarized the twelve "hidden costs" as follows:

First, the cost of conference

Meetings are collective activities where companies solve problems and issue instructions, but they are also costly business activities.

Because this activity is often a lot of leaders to participate in collective activity, every minute, means that the number of minutes of the total number of participants, and many enterprise managers did not grasp the meeting skills, there is "no theme, without preparation before the meeting, the assembly after the meeting without execution, the unnecessary, time control, speak no marginal" six phenomenon.

II. Procurement cost

There was once an enterprise, when doing a new project, the daily operation cost of the project team was 80,000 yuan, but before the launch of the product, the procurement department spent a week to purchase more than 100,000 yuan of packaging, the reason is to find a low price supplier to save procurement cost.

The entire marketing team waited an extra week to sign up clients.

And this phenomenon actually exists in many enterprises.

Blindly pursuing to reduce the direct cost of procurement while ignoring the coexisting "hidden costs".

Of course, there is no conflict between reducing the direct cost of procurement and this paper. Here, what we want to say is that the procurement department of the enterprise should comprehensively weigh the indicators from the perspective of overall operation in order to truly control the cost of procurement.

3. Communication cost

In most enterprises, you will find that in the process of communication between colleagues, there will be serious distortion of the phenomenon, or words do not convey meaning, or irrelevant answer, or 100 people 100 solution...

This phenomenon, said to be small, makes a lot of processes become ineffective, or lost a lot of important opportunities.

Say big, may therefore bring hidden trouble to the enterprise.

4. Overtime costs

Many bosses always think that employees "forget to eat and sleep" after work "overtime" is a phenomenon of dedication.

Little did they know that this could be a high cost.

There are three reasons:

First of all, the reason for working overtime is not necessarily that the work is too heavy, but that the employee's work efficiency is low, overtime means low efficiency.

Second, cost more employees to work overtime energy and physical strength, serious overdraft employees health, go down for a long time, will get some key staff cannot play its effectiveness for a long time, and for the hidden trouble of the company's burden, such as some mechanical operation staff work overtime because of long time and cause fatigue, cause an accident, the enterprise will pay a heavy price.

Third, staff overtime is not necessarily "business is business", some employees in the work, called to work overtime, the use of company resources, to engage in their personal things, but also for the company's overtime, significant loss of many enterprises, such as data loss occurred in the time from work, and work overtime as enterprise "and" blind Angle.

Cost of mechanical talent flow

What an excellent mechanical talent means for a unit, I believe that as a leader of an enterprise is clear in mind.

Many enterprises are very deficient in human resource management, they think that the talent is infinite, become the "iron camp", the employees will naturally become the "water soldiers".

Have to say, an employee leaving the company is a cost, because the company to bear the upfront costs such as training for the staff, to undertake new hiring staff the upfront costs of the position, but also to assume the risk of new employee is fit for jobs, and also the old employees leave because of the professional quality, may lose some of the important internal data or information, and after his departure,

Is likely to enter a competitor's business.

Therefore, the loss of employees, especially old employees, will undoubtedly bring expenses several times higher than their income to the enterprise.

Many small businesses, after many years of operation, you realize that they are always such small teams, and apart from the owner, there is not a single employee left over from the founding of the business.

Sixth, post dislocation cost

There is a famous saying in human resource management "put the right people in the right places".

Unfortunately, there are not many companies that can do this.

When I was recruiting at a talent market, I heard a conversation among the employees, saying that every job fair required all the staff to move desks and chairs, because it was the rented gymnasium that was used as the recruiting site.

On the professional managers, down to the ordinary staff, have become a "porter", I can not help but sigh, the enterprise is engaged in talent recruitment and management, how can spend so high wages to invite not professional porters.

In fact, this reflects a very clear psychology of the boss, they think that these employees are recruited back to use, as long as their own hands can do, there is no need to spend more money to do.

But we find that they pay a high price for it.

The company's employees have been complaining that many of them are women who are too weak to carry desks and chairs. Senior officials have never been treated with such courtesy, and some have left.

We stopped hiring at the job fair because I didn't believe I could be well served by such a team.

VII. Process cost

Too much of the chaos in the enterprise is due to the process, which is a common fault in the enterprise management. Any enterprise with slow development must have a chaotic or unreasonable process.

They bear the high cost of doing so, and yet they keep looking the other way.

Process is the industrial chain of enterprise operation, just like the assembly line, without a scientific and reasonable process, it will lose the systematic control of various work, a lot of work fell by the wayside, there are a lot of work need to rework, nothing is strange.

This would be a tangle of knots wrapped around the company's feet.

Stagnation of resource costs

Stagnation of the resources in the enterprise is the most extensive "hidden costs", for example, the idle equipment, the backlog of inventory, low utilization rate of job occupation, idle capital, on business, etc., although they may not continue to consume the enterprise investment, but they are part of the corporate assets, enterprises will take the interest and other hidden costs.

Therefore, in an enterprise, the amount of stagnant resources reflects the level of enterprise resource utilization.

Nine, enterprise culture cost

It is said that corporate culture is like the soul of an enterprise, which can be reflected in the spiritual outlook of every member.

This kind of culture starts to be established in the early stage of enterprise establishment. It is influenced by the culture, habits, skills, occupation, likes and dislikes of the founder of the enterprise. Therefore, it is said that the enterprise culture is the boss culture.

But to say that corporate culture will become a cost, many people may not agree, but it is true.

We will find that some enterprises staff spirit is depressed, work efficiency is extremely low, no matter how good staff as long as entering, soon or leave, or will become so, we have to say, this is the "environment" problem.

And this "environment" is the corporate culture of the company.

Corporate culture is like the life of an enterprise, which can only be adjusted, but cannot be rebuilt.

X. Credit cost

This is a cost involved in long-term returns, honest business as honest life.

We have found that many enterprises are used to defaulting on payment to suppliers, defaulting on employees' salaries, deducting others, defaulting on bank loans and so on, thinking that this can relieve the liquidity pressure of enterprises.

However, in the long run, this will become a serious hidden cost for business operations. First, suppliers will certainly include the time cost in their quotations, and such enterprises cannot purchase raw materials or services at the lowest price.

Secondly, employees who are in arrears of wages and violate labor laws and regulations are in danger of being punished.

And default on bank loans, deduct others, will give its credit degree discount, one day when the enterprise is in trouble, will be embattled on all sides.

There is no doubt that the enterprise has paid a heavy price for this, but in fact it has not gained any benefit from it.

XI. Cost of risk

It is every entrepreneur's dream to push the enterprise into the fast lane.

But the risk factor also increases accordingly.

In particular, large and medium-sized enterprises, although they develop rapidly and have rich income, but once a crisis occurs, it will be disastrous.

Many cases have proved that many risks of enterprises are caused by insufficient expectations or poor management, and hidden dangers are buried early before the occurrence of risks.

And many large enterprises or well-known enterprises died because of a risk.

Therefore, risk is a significant hidden cost.

And this phenomenon is not obvious, it is really "it never rains but it pours".

12. Entrepreneurial costs

"Entrepreneurial costs" refer to the costs imposed on the business by the boss himself.

There is a word of good, soldiers bear a bear, will bear a nest.

Entrepreneurs, like the head of an army, are themselves the most expensive employees of an enterprise.

Many bosses of private enterprises turn themselves into the "emperor" of the enterprise, making their own decisions and turning all employees into execution machines.

However, the defects of entrepreneurs' personal factors will increase the heavy cost burden for enterprises.

This phenomenon is mainly reflected in small enterprises, but it also exists in large enterprises, and we can also extend this cost to every department or even every employee of the enterprise.

Because everyone is responsible for their own work, we often emphasize that in your sphere, you are the leader and you have the right to make decisions.

Many leaders have always been self-centered, which will greatly reduce the combat ability of the team and increase the high hidden cost.

I remember I once said to a boss who complained about the lack of talents in his company: "What your company lacks is not talents, but the wisdom of finding and making good use of talents."

It can be seen from above that enterprises are often burdened with a lot of burdens in their operation and management, and the hidden cost is the heaviest one of them.

Finding and effectively reducing the above hidden costs is a powerful measure for enterprise progress.