FINANCIAL_COST: Creating negative feedback loops

Time after time, I see Business and IT Leaderships struggle with changing organization behavior.

But they FAIL to use “cost recovery” to affect change.

When I had a severely understaffed InfoSec group and THREE people who did nothing but change passwords, I pitch an idea to my boss at how to eliminate stupidity, laziness, and make work.

It was basically a two pronged attack to reduce the approximately 9,000 password resets we were doing annually in a 5,000 person company. I swagged up a number at how much each one of those password resets cost him — 17$ each in labor. We needed those folks to do other work, but password resets took time away from other more important work. So IT charged back to the individual’s cost center 20$ for each password reset AND an individual could not call in for a password reset, their Boss did. We’d then call back the individual and reset it. We went from 9,000 per year to about 30 per year. 

(And, I was rewarded at bonus time for an excellent idea.)

From this, I formulate the idea of using “cost recovery” as part of a negative feedback loop.

I see meeting with color copies. I see runaway B&W printing from stupidity. And, I see personal printing galore at shared printers.

Seems like an area that’s ripe for cost recovery.

— 30 —