TANGO Partners Perspective – September 2020
Cate Heaman, Principal/CEO
Executives of nonprofits face pressures from every direction: sourcing funds, finding and maintaining talent to run programs, keeping on top of technology, all while defining and strengthening their mission.
In addition, during this unprecedented time of disruption, pressure has increased ten-fold to identify immediate cost savings. Executives of nonprofits need to take a fresh approach to these problems to achieve and sustain success.
Drive higher operational performance by prioritizing your cost optimization efforts.
However, not all cost optimization initiatives yield the same benefits. In reviewing your cost optimization ideas early on, focus should be on FIVE KEY OBJECTIVES. The outcomes will provide a decision framework of your cost optimization initiative – level of benefit, cost, risk and viability.
Objective #1: Potential Financial Benefit
- How much are the savings if the initiative is implemented?
- How does the initiative affect cash flow?
Objective #2: Business Impact
- What impact will this initiative have on nonprofit operations?
- Will this adversely affect day-to-day activities?
Objective #3: Time Requirement
- Will cost savings be captured and realized within the next 12 months?
- How to measure soft savings with this initiative?
Objective #4: Degree of Technical Risk
- Will the initiative undermine the ability of our technology to deliver services?
- Will the initiative cause delays in operations impacting few or many components?
Objective #5: Investment Requirement
- Does the initiative require a large, upfront investment before savings can be realized?
- Is our nonprofit able to make an investment at all?
The effort to optimize your telecommunication systems can benefit nonprofits in many ways.
Optimization reduces costs and can improve efficiencies, as well as reducing errors or risk. When telecommunication systems perform to their full potential, and costs are justified, your nonprofit can maximize the ROI of its investment.
- Optimization of your telecommunication systems can provide a large financial benefit – potentially to significantly improve cash flow or will generate hard/soft savings
- An outside review of your telecommunications spend will have neither a positive nor a negative impact on your day-to-day operations. The initiative is performed with minimal time required by your nonprofit business leaders.
- The optimization initiative will have low to no impact on your current technology operations. Any changes will not undermine the ability of your systems to deliver technology.
- Finally, No upfront investment is required before savings is realized.
- Savings can be realized and implemented within 3-6 months.
Now is the time to GREEN LIGHT your Telecom Optimization Initiatives
101 Lindenwood Drive, Suite 225
Malvern, PA 19355