Thursday, July 24, 2008

Keeping down administrative costs

As the internet developed further, businesses saw the opportunities therein to mobilize information, services, and sales to the virtual world. This movement helped to minimize previous administrative costs such as mail advertisement, tv, radio, etc. Online advertisement is a growing market with (probably) a long profit curve ahead of it. Another notable movement that is giving businesses an opportunity to reduce costs is the "green" or environmental wave.

CEOs should take notice to this and defer the information to their Head of HR and/or infrastructure/business analyst/accountant or take matters into their own hands with a public statement to the company (being "green" reflects good press and may increase sales, not to mention, it saves money in most cases). Some areas that benefit from revamping are staplers, paper, water bottles, paper cups (water cooler), and lighting. There are staplers which now use no staples, saving money and resources, by simply punching a hole in the stapled paper (must be paper) and folding the punched edge over. Recycled paper has been continuing its decline in price as it is more readily purchased by green consumers and can lower costs if your business is near a processing plant. Paper cups at the water cooler are generally a waste of both money and the environment (biodegradable cups are quite costly). What is suggested, is to do away with both paper cups and plastic bottles by encouraging your employees to buy Sigg bottles. These Swiss made metal bottles have been proven to leach no chemicals in water (unlike plastic bottles and other metal containers) and come with a long-life guarantee. These would cut down on paper cups and help the health of your employees. Obviously, a mug is just as good for office drinking, just not as easily portable as a bottle. Finally, if your company is building some edifice where people will be working, it is essential to have as much natural sunlight brought into all working spaces as possible. This not only reduces the cost of electricity during the daytime, but provides everyone with daylight the body needs and could help boost the immune system to reduce sick days. It is much less costly to have this designed by arranging it with your architect prior to construction.

Other long-term areas of consideration should include micro-power, gray water filtering, intensive recycling, on site compost, frame seals/door plans, the latest thermostat, electricity/water saving devices, and fresh air intake ventilation. Micro-power is the idea of using photovoltaics (solar panels), wind turbines, geothermal, or even concentrated sunlight to heat water to make steam to turn turbines to produce energy. If these or other long-term options are considered the initial cost will generally be slightly greater than conventional designs but in the future will definitely reduce administrative costs and perhaps even generate income if surplus energy is sold to the power grid. This surplus can be used in a variety of ways, including paying employees a higher wage, putting it into their pensions, investing in building maintenance, business diversification, etc. Gray water filtering/recycling is something truly being led by the Australians. If all water used in the building were recycled through a filtering process it would reduce the water bill considerably. Australian studies have shown that water recycling produces clean and safe drinking water. On site compost using any 'hot-composting' technology available produces a young soil full of nutrients that can be used for indoor plants and outdoor landscaping or gardening to give your office a more vibrant and welcoming atmosphere. Ensuring that windows and doors leading to the outside are properly sealed to keep in heat and moisture is essential to reduce administrative costs. What is the point of heating or cooling your office if all that energy seeps out of cracks or doors? The best option is to ensure your architect and builder guarantee a process of providing these or that you have a fitter come in and check all windows and doors for efficiency. A great technique for doors (used at the Antarctic Center in Christchurch, NZ) is for two doors to be used to outside access, except that once one set of doors has opened, they must close for the second to open, thus preventing a rush of energy being lost.

Everything else is fairly explanatory except for the water and energy saving devices which many people still seem not to know about. Water faucets can be fitted with a small ring that reduces water flow by increasing pressure and oxidation (same goes for shower heads). Many power bars or utilities offer a standby option cutter. Computers, tv's, printers, etc. even when turned off remotely still use power to remain in "standby" mode. However, some power bars or utilities offer to cut power for a full shut-down thus reducing this waste of money. Another option is to have power outlets with a manual shut down button for easy power cutting.

I employ all of these techniques (and more) and am saving lots on administrative costs. Hope this helps someone.

- Jean-Paul

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