Productivity of The Cost

Wait... what?... did we mean to say The Cost of Productivity?

Well, urrm... no!

We are actually talking about the Productivity of the Cost!

Ok... so what's the difference?

Remember that clever story about special space pen vs using a simple pencil? Where one team spent thousands of dollars to create a pen that would work in space while other team simply chose to use pencils?

Although the story has dubious origins and may contain some spurious?claims, the point it makes is less about The Cost of Productivity (which was obviously less in the simple pencil than in the multi-fici-fic pen), but more about Productivity of the Cost (the team that chose pencil for writing quickly and then moved onto solutioning for other critical tasks related to space travel - was highly productive with its cost, that included resources such as dollars and time, as well as decisions about what these limited resources should be spent on...).

In fact, The Cost of Productivity has been used by forefathers of planning, in determining The Budget! For years together, scores of planners would create budget with following essential data points - projected Output, projected Productivity and projected Cost of Productivity.

Of course, there were a number of planners who would also instinctively try to get answer to the important but often missed question, "Whether the costs we budgeted were and will be really productive?" But, for decades, this remained just an instinctive impulse, till the Earth rotated itself to 1960s.

So what happened in 1960s?

A 27-year old accounting manager in Texas Instruments, Peter Pyhrr, came up with a revolutionary budgeting technique called Zero-based Budgeting. Under Zero-based Budgeting, each dollar requested for a coming year had to be justified, forcing planners / managers / bureaucrats to take a long, hard look at the Productivity of spending each and every dollar, old or new!

Zero-based Budgeting took the business and bureaucratic world by storm in 1970s and kept resonating with the leading Organizations.

And now, since 2020s, considering the recessionary times, this concept has come back with renewed vigor, and a renewed name, called as Zero-based Transformation!

In other words, this Zero-based Budgeting/Transformation is nothing but a way of maximizing Productivity of the Cost.

So, if Budgeting is about The Cost of Productivity, then, Zero-based Budgeting is about Productivity of the Cost!

We at Horizon4 Digital Solutions, firmly believe in Zero-based Budgeting/Transformation.

We are committed?to maximize "Productivity of the Cost" for Digital Engineering! This cost of Digital Engineering may be in dollars, effort-hours, schedule-weeks or even number of back-and-forths among and between business and engineering teams...

In these recessionary times, to survive and thrive, we wish that all of your Organization's Digital Engineering costs be most productive!

And, if your Organization is still concerned about Productivity of the Cost of Digital Engineering, then do contact us at [email protected]