{"id":1169,"date":"2022-07-13T09:00:00","date_gmt":"2022-07-13T15:00:00","guid":{"rendered":"https:\/\/processprimer.com\/?p=1169"},"modified":"2022-07-13T09:00:00","modified_gmt":"2022-07-13T15:00:00","slug":"operational-process-death-by-a-thousand-paper-cuts","status":"publish","type":"post","link":"https:\/\/processprimer.com\/blog\/operational-process-death-by-a-thousand-paper-cuts\/","title":{"rendered":"Operational Process Death by a Thousand Paper Cuts"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Paper-dependency is killing operations in a technology world.<\/h3>\n\n\n\n<p>Have you ever stopped to think about the waste that comes from being too paper-driven in your day-to-day operations? The <span style=\"color:#cf2e2e\" class=\"tadv-color\"><strong>costs could be upwards of 20%<\/strong><\/span> of your company&#8217;s overall expenses.<\/p>\n\n\n\n<p>How could it possibly add up to that much? <strong><span style=\"color:#00d084\" class=\"tadv-color\">Read on while I plead my case for a paperless tomorrow.<\/span><\/strong><\/p>\n\n\n\n<p>To make a point, I&#8217;m not even going to include the additional waste on things like paper bills, direct mail and other customer-facing paper-driven activities &#8211; so I&#8217;m excluding areas like sales and marketing, advertising, customer support and human resources.<\/p>\n\n\n\n<p>I will focus on the internal operations of order fulfillment for this say-no-to-paper drive, so all the things a company needs to process an order, deliver the good or service and bill for it &#8211; I&#8217;m including administration, product\/service delivery, health and safety and accounting.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"771\" src=\"https:\/\/processprimer.com\/wp-content\/uploads\/2020\/12\/image-3-1024x771.png\" alt=\"\" class=\"wp-image-1282\" srcset=\"https:\/\/processprimer.com\/blog\/wp-content\/uploads\/2020\/12\/image-3-1024x771.png 1024w, https:\/\/processprimer.com\/blog\/wp-content\/uploads\/2020\/12\/image-3-300x226.png 300w, https:\/\/processprimer.com\/blog\/wp-content\/uploads\/2020\/12\/image-3-768x578.png 768w, https:\/\/processprimer.com\/blog\/wp-content\/uploads\/2020\/12\/image-3.png 1458w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p>Paper-driven processes create waste and prevent multitasking efficiencies. Plain and simple.<\/p>\n\n\n\n<p>I could go on and on about the paper waste stats such as the average office worker uses 10,000 sheets of paper a year, 50% of the waste of businesses is composed of paper, each organization\u2019s paper consumption grows an average of 22% per year (doubling costs every 3.3 years) and so on. But, instead, let&#8217;s get right into the problems with paper-driven processes.<\/p>\n\n\n\n<p><a href=\"https:\/\/smallbusiness.chron.com\/average-cost-per-month-office-supplies-12771.html\" target=\"_blank\" rel=\"noreferrer noopener\">Here is an insightful article to read<\/a> if you&#8217;re interested in those stats and other great tips to reduce paper consumption in the office.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"color:#cf2e2e\" class=\"tadv-color\">There are two main cost disadvantages to relying on paper-driven processes.<\/span><\/h3>\n\n\n\n<p><strong>First, there are the obvious hard costs (office supplies)<\/strong>: paper, toner, printer hardware, printer support and maintenance, filing cabinets, file folders, staplers, staples, paper clips, hole punches and binders. Oh, and don&#8217;t forget about secure paper-shredding costs. If you would like a ballpark yearly dollar figure on the hard-costs of paper expenses, add together the following numbers:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>your printer hardware, maintenance and support costs per year<\/li>\n\n\n\n<li>office supplies @ $350 to $1,000 per employee per year<br>($1,000 if you have a company of 4 or less staff)<br>($350 if you have a company of 200 or more staff)<\/li>\n\n\n\n<li>secure paper-shredding costs per year<\/li>\n\n\n\n<li>any additional costs related to the delivery or storage of paper documents<\/li>\n<\/ul>\n\n\n\n<p><strong>Second, there are the soft costs (inefficiencies and wasted human resources)<\/strong>: waiting for the printer to print, retrieving printouts, hand-delivering printouts, filing, replacing paper and toner, standing around waiting for an ink signature from the boss, having a single printout that only one person can consume at a time, photocopying documents, scanning paper documents for the purpose of signature or storage and sending staff to purchase paper and other paper-related office supplies.<\/p>\n\n\n\n<p>In my opinion, the latter is actually the greater cost and risk to your business profitability and longevity. <\/p>\n\n\n\n<p><strong><span style=\"color:#00d084\" class=\"tadv-color\">Let&#8217;s go over a hypothetical on how a reliance on paper can be very costly:<\/span><\/strong><\/p>\n\n\n\n<p>Let&#8217;s say you have a business of 10 office workers. It&#8217;s not unusual for the average employee to print up to 10 documents per day. Now, let&#8217;s say the average time spent on paper activity (enabling the computer to print, waiting or it to print, picking up the printout, stapling, paper-clipping and filing) is 9 minutes. This will make the math easier.<\/p>\n\n\n\n<p>So, 1.5 hours (90 minutes) per day, 5 days per week, 50-ish weeks per year. Keep in mind that <strong><span class=\"tadv-color\" style=\"color:#00d084\">the average worker is only productive for up to 7-hours per day<\/span><\/strong>, on an 8-hour shift, after subtracting two 15-minute breaks and one 30-minute lunch. The reality of it is that the same worker also spends another 30 to 60 minutes per day, walking to\/from meetings, getting coffee or water and using the washroom. So, really, productive time for an employee is probably closer to only 6.5 or 6 hours per day.<\/p>\n\n\n\n<p>For our math calculation, we will stick with the &#8220;7 hours of productive time&#8221; per day per employee (even though we all know it&#8217;s less). If 1.5 hours per day out of a 7-hour day is spent pushing paper, <strong><span class=\"tadv-color\" style=\"color:#00d084\">21.4% of that worker&#8217;s salary is going towards wasteful paper processing<\/span><\/strong>. It&#8217;s like burning money on paper. Or, burning paper money. Or, paper that&#8217;s burning your money &#8211; I&#8217;m sure there&#8217;s a creative pun that belongs somewhere in this paragraph&#8230;<\/p>\n\n\n\n<p> Have a look at your company&#8217;s yearly payroll and calculate ~20%. It may be more for one company and less for another but this ~20% is what you&#8217;re spending in soft costs for your company&#8217;s reliance on paper.<\/p>\n\n\n\n<p><strong><span style=\"color:#ff6900\" class=\"tadv-color\">Here are some tips for reducing your company&#8217;s reliance on paper:<\/span><\/strong><\/p>\n\n\n\n<p>Think about all the process-related areas where your teams may be over-utilizing and over-depending on paper. Then, look at the paper-driven activities and determine if it is possible to replace them with electronic activities instead.<\/p>\n\n\n\n<p>Again, I&#8217;m only focusing in on administration, product\/service delivery, health and safety and accounting. But, if you like, feel free to consider the paper-driven processes within your sales and marketing, advertising, customer support and human resources departments as well.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"457\" src=\"https:\/\/processprimer.com\/wp-content\/uploads\/2020\/12\/image-6-1024x457.png\" alt=\"\" class=\"wp-image-1298\" srcset=\"https:\/\/processprimer.com\/blog\/wp-content\/uploads\/2020\/12\/image-6-1024x457.png 1024w, https:\/\/processprimer.com\/blog\/wp-content\/uploads\/2020\/12\/image-6-300x134.png 300w, https:\/\/processprimer.com\/blog\/wp-content\/uploads\/2020\/12\/image-6-768x342.png 768w, https:\/\/processprimer.com\/blog\/wp-content\/uploads\/2020\/12\/image-6-1536x685.png 1536w, https:\/\/processprimer.com\/blog\/wp-content\/uploads\/2020\/12\/image-6.png 1920w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"has-text-align-center\">Paper-driven activity<\/p>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<p class=\"has-text-align-center\">Replace with electronic activity<\/p>\n<\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<ul class=\"wp-block-list\">\n<li>delivering printouts<\/li>\n\n\n\n<li>waiting for ink signatures<\/li>\n\n\n\n<li>photocopying documents for multiple people<\/li>\n\n\n\n<li>multiple printouts in meetings with multiple participants<\/li>\n\n\n\n<li>scanning documents for the purpose of filing and storage<\/li>\n\n\n\n<li>printer maintenance<\/li>\n\n\n\n<li>filing paper<\/li>\n<\/ul>\n<\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<ul class=\"wp-block-list\">\n<li>use email or fileshares<\/li>\n\n\n\n<li>use electronic signatures<\/li>\n\n\n\n<li>share electronic document to multiple people<\/li>\n\n\n\n<li>use a portable monitor or tablet for the meeting participants<\/li>\n\n\n\n<li>secure electronic file storage for scanned documents<\/li>\n\n\n\n<li>&#8230;<\/li>\n\n\n\n<li>&#8230;<\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n\n\n<p><strong><span style=\"color:#00d084\" class=\"tadv-color\">Here&#8217;s a fun suggestion to help you put a stop to paper:<\/span><\/strong><\/p>\n\n\n\n<p>If your company is already using electronic solutions and continues to print and file paper anyway, try kicking off an initiative to put a halt to the duplicate paper processes. Reward your team members with credits for each time they do not duplicate their electronic efforts with paper. <strong>Run this initiative for one year and have your team members periodically trade those credits in for things like coffee gift cards, iTune gift cards, their pick of projects\/initiatives to work on, time off and other fun items.<\/strong><\/p>\n\n\n\n<p>You might think giving time off is counter-productive at first, but if they are spending 20% of their working year on non-value-add activities, giving them one day off out of ~250 working days per year (less than 1%) is still netting your company a 19% improvement (potentially).<\/p>\n\n\n\n<p>This activity may cost you a little at the beginning but the savings will stretch on year over year.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"color:#ff6900\" class=\"tadv-color\">Let&#8217;s kick off the New Year with this resolution:<\/span><\/h3>\n\n\n\n<p>Commit to identifying each process that is still paper-driven and put a plan in place to optimize the process and phase out the dependence on paper.<\/p>\n\n\n\n<p>Need some help assessing and planning this out? Process Primer Consulting can help! <a href=\"https:\/\/processprimer.com\/contact\" target=\"_blank\" rel=\"noreferrer noopener\">Contact us<\/a> anytime to learn more.<br><br>Happy New Year!<br><br><\/p>\n\n\n\n<p>We&#8217;re always available for questions and opinions. Feel free to leave a comment below.<\/p>\n\n\n\n<p><span style=\"color:#0693e3\" class=\"tadv-color\">Comprehend.<\/span> <span style=\"color:#cf2e2e\" class=\"tadv-color\">Reimagine.<\/span> <span style=\"color:#c8b568\" class=\"tadv-color\">Outperform.<\/span><\/p>\n\n\n\n<p>Alwin Kwan<br>Your Friendly Neighbourhood Process Consultant<\/p>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n<\/div>\n\n\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:33.33%\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:66.66%\"><\/div>\n<\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Paper-dependency is killing operations in a technology world. Have you ever stopped to think about the waste that comes from being too paper-driven in your day-to-day operations? The costs could be upwards of 20% of your company&#8217;s overall expenses. How&#8230;<\/p>\n","protected":false},"author":2,"featured_media":1304,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-1169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-process-improvement"],"_links":{"self":[{"href":"https:\/\/processprimer.com\/blog\/wp-json\/wp\/v2\/posts\/1169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/processprimer.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/processprimer.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/processprimer.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/processprimer.com\/blog\/wp-json\/wp\/v2\/comments?post=1169"}],"version-history":[{"count":0,"href":"https:\/\/processprimer.com\/blog\/wp-json\/wp\/v2\/posts\/1169\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/processprimer.com\/blog\/wp-json\/wp\/v2\/media\/1304"}],"wp:attachment":[{"href":"https:\/\/processprimer.com\/blog\/wp-json\/wp\/v2\/media?parent=1169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/processprimer.com\/blog\/wp-json\/wp\/v2\/categories?post=1169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/processprimer.com\/blog\/wp-json\/wp\/v2\/tags?post=1169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}