What are organisational costs?

'What are organisational costs?'by Tony de Bree

Morning.

many large corporates are since the beginning of Covid-19 in great financial trouble. One of the manin problems they face is that their organisational costs are much too high. But what areorganisational costsactually?

Organisational costs are the costs or expenses of creating a company  and running a company measured in money, time and energy. 

Many corporates are used to be able to charge out all their costs including organisational costs in terms of money, time and energy to their customers.

Managing, coordinating and collaborating internally and externally cost money, time and energy. 

There are actually two types of costs looking at it from a revenue model perspective:

Necessary costs and unnecessary costs. A great example of that last category is the possession during Covid-19 of physical assets like expensive office space in the centre of very expensive towns. Many corporates discovered that everybodey could actuaally work and collaborate very well working from home and using tools like Zoom, Skype and Teams.

Something many startups, scale-ups and other new companies using the virtual organisation as a basic organisational design, already discovered a long time ago. And that is why they have much lower organisational costs and that explains why they are much faster than large traditional organisations.

Contact me today.

If you have any question or request on how you can use ICT to lower your organisational costs using ICT, how to define the best corporate survival strategy for your company and how to redesign your corporate company using ICT fast, please do not hesitate to call me on Skype on tony.de.bree, on 0031634387806 or email me here.

Kind regards,
Tony de Bree

p.s.
Let’s connect on LinkedIn.

About the Author: tonydebree

Tony de Bree is a born survivor. He worked 26 years in global banking & finance. As turnaround manager and in corporate strategy & change, outsourcing, offshore banking & splitting up ABN Amro Bank globally. In 2001 he started as digital business owner selling digital products in 2001 next to his dayjob at ABN Amro Bank as 'plan b'. In 2011, he became independent business owner helping C-level, startups, scaleups & SMEs to survive and grow personally.

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