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The Case for Limited Internet Access
While conducting a seminar for the Institute of Classical Architecture I was
reviewing the difference between competing for business in a commodity
market versus a qualifications market. In a commodity market there is a
perception by clients that all firms are created equal. At the end of the day
all that matters to them is what company can provide design services for the
lowest possible price. ABC Company can do it for a dollar and XYZ Company can
do it for 99 cents. Of course XYZ Company will be awarded the project. In
order to successfully compete in this market, a design firm must be organized to produce work quickly, efficiently and at a low cost.One of the attendees asked how I would organize a commodity firm to maximize efficiency, reduce costs and effectively compete. I rattled off some ideas such as high reuse of prior work, a flat organization structure, and inexpensive facilities and so on. I then mentioned something that I had not really thought of before - limiting Internet access. I suggested that Internet access, other than e-mail, not be provided at individual work stations. If Internet access is needed for research or to download business related files, then I would provide a computer or two in the middle of the office. The monitors and keyboard would be waist high, in plain view and no chair available for sitting. I made a conservative estimate that 30 minutes or more of productivity would be gained each day for every employee in the company. If you multiply ½ hour times the hourly billing rate times the number of employees, you can quickly see what this would mean to your bottom line. For a 10 person company, with an average billing rate of $100, 30 minutes of increased productivity could easily translate into $100,000 more of profit. For a 100 person firm it could translate into $1,000,000. With numbers like this, it is certainly worth considering. Apparently I am not the only one who has made this observation. While conducting a seminar on Ownership Transition and Valuations last week, one company shared their company policy on Internet access. The owner directed his IT department to conduct a study showing how much time was being spent on the Internet by their employees. The owner was so shocked at the amount of time being spent on the Internet that he knew something had to be done. His initial instinct was to immediately remove Internet access from individual work stations. However his managers were concerned about potential backlash. They developed a compromise that made Internet access available 1 hour in the morning and 1 hour late in the day. So far this policy seems to work well for him and the amount of time surfing the net has been dramatically reduced. What is your policy on Internet usage? Do you have a policy? Have you
considered what it really costs your firm in lost productivity? Maybe it's time to ask these questions - even if your afraid of the answer.
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