Quantifying the Financial Impact of Collaboration in the Workplace
Last year Deloitte was asked by Google Australia to quantify the value of greater workplace collaboration, and the results are pretty jaw-dropping. Deloitte came up with a “net value of collaboration” to the national Australian economy of $46 billion per year.
The figure was based on survey findings of 1000 Australian employees and managers conducted in June 2014 by Stancombe Research and Planning. Deloitte calculated as the time saving productivity benefits of collaboration, the quality improvement benefits of collaboration, minus the costs of collaboration, such as wasting time in meetings and/or being distracted by other colleagues in the workplace. The analysis also factored in the wages value of employees’ and managers’ time.
Of those surveyed, approximately 30% of respondents said they want to collaborate more. Deloitte estimates that if this optimal level of collaboration is reached, an additional $9.3 billion of collaboration value can be realized – bringing the total value of what it calls, “the collaboration economy” in Australia to $56 billion.
Net-net, Deloitte found faster-growing, profitable businesses had collaboration as a core part of their go-to-market strategy and company culture. It determined that companies that prioritize collaboration are five times more likely to experience a considerable increase in employment, twice as likely to be profitable, and twice as likely to outgrow competitors. These and more insights are highlighted in a report called “The Collaborative Economy – Unlocking the Power of the Workplace Crowd".
Of those surveyed, 36% said their organizations had become more collaborative over the last three years, citing the following key drivers for this change: progressive leadership and culture, workplace champions, and use of technology as an enabler to drive collaboration adoption.
Epicor views collaboration is a strategic core competency in today’s dynamic business climate. We know that enabling businesses to collaborate internally and externally to leverage the knowledge and experience of the people and systems connected across their supply and value networks is one of the keys to success. Technology should support people by improving their productivity, communication, and their ability to easily access the information they need from anywhere.
But while technology is vital to support collaboration, there must first be a strong cultural approach to collaboration as a mindset to ensure success and adoption of these technologies. Learn more about how your organization can benefit through greater collaboration. Visit our website at www.epicor.com/lac