So what are good benefits for employees?.What are the four major types of employee benefits?.Why do employers offer benefits to employees?.In this era of stronger corporate governance, where visibility of internal decision making engenders stakeholder confidence in management, the latter is definitely better.Īnother way to improve our chances of flipping intangibles into tangibles is to better understand the building blocks of easily measured factors. The only issue then is whether, at the time of decision making, the use of intangibles is going to be hidden under the table or brought into the light of day. A core skill of senior managers is the ability to make the right decisions in the face of less than factual (for example, intangible) information. People who claim their decisions are made “solely on the facts” are expressing hope, not reality. 3: Good Decisions Consider Only the Facts Factors with an important worth should be central to a business case, even if they aren’t easily quantified. Many things in our economic life are both highly valuable and quite intangible-the value of the Coca-Cola logo and Wal-Mart’s image with Wall Street come to mind. In that example, the original intangible benefit was “a new asset management system will help us track our assets better.” Flipping this intangible over to concrete measurement status occurred by eliminating unnecessary rental costs. A more accurate and timely capital assets system was quickly justified and put into place. A short investigation later revealed that the construction crews were unaware of the warehoused equipment. A manager noticed that the rental cost for construction equipment was skyrocketing while at the same time few requests were being made for identical machines sitting idle in enterprise warehouses. I once advised a West Coast services organization on value discovery. The impressed logging operators bared their souls to reveal major, undiscovered costs the new system would alleviate-such as poorly scheduled hauling vehicles, which reduced the crane person’s productivity through no fault of his own.Ī search for the “cause of silence” also provides intangible to tangible conversion possibilities. Believing otherwise, he traveled more than 1,000 miles to interview logging crane operators on the job. Many people considered such an investment too soft to quantify. I met a manager who was determined to justify an improved, although expensive, process for better logging operations in the South. Another way to convert false intangibles to concrete measurements is to “ask those who know.” By this I mean to uncover often obscure systems benefits known only to those who live the process every day.
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February 2023
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