TCO – the underestimated discipline of many decision-makers
Some believe that Total Cost of Ownership (TCO) is an issue for accountants. For those who want to record every detail of depreciation, maintenance or license cleanly.
But that’s exactly where the mistake lies.
TCO is not a tool. It’s not a formula either. TCO is a look at the big picture. A style of thinking for leadership and sales.
What does a decision really cost us? Not today, but over the entire service life?
A case from practice:
A car dealership is replacing its CRM system. The new solution costs 12,000 francs less per year.
Decision? Quickly felled.
On paper: efficient.
But:
– The new tool is less intuitive.
– 4 sales consultants now lose an average of 8 minutes per customer contact.
– Reports can only be created with workarounds.
– Follow-up contacts are made too late or not at all.
– Two regular customers are leaving.
In the end, the company loses 6% in revenue within a year.
The direct cost savings? Fizzles out.
The indirect costs? Insidiously, but noticeably.
TCO means: looking where others calculate away.
After all, what good is a decision if it slows down the team?
What good is a cheap deal if it weakens customer relationships?
What is the point of discounts if no one has time to look after customers properly afterwards?
TCO does not start exclusively in accounting. It starts with the questions that the leadership would have to ask itself every time:
– How does a decision affect the customer experience and motivation?
– What is the price of complication?
– How much trust is lost due to inefficiency?
– How many opportunities remain untapped because the focus was only on costs and investment?
At FinOptima, we therefore not only analyze sales processes, but we also help organizations to uncover their hidden sources of costs.
In consulting, training, coaching and in mystery shopping.
We make visible what others accept as “given”.
Because if you only see the price, you miss the true value of a decision.
TCO is more than a number. It is the sum of effect, consequence and side effect.
Those who only calculate in the short term pay the higher price in the long term.
That’s why a new way of thinking is needed: What is the true price of a decision?
For example, how do I quantify the time lost in the workflow? How are the opportunity costs of decisions that are not made? The customer churn due to friction because frustrated customers no longer feel heard? The demotivation and fluctuation because decisions miss reality?
Not everything can be quantified exactly, but almost everything can be made visible with the right perspective and attitude.
Because numbers don’t lie, but they often conceal the decisive thing.
“Unleash potential – celebrate success.”
