About Purpose is about your purpose.
Aim: Identify and articulate your purpose.
Arm: Shape yourself around your purpose.
Act: Achieve your purpose.
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Problem Solving Worksheet
Bob Ryan, About Purpose, Inc. ©2000
Here’s a useful worksheet for deciding how much a problem is worth. Work through the numbers to give you an estimate of what value of resources ought to go into solving the problem.
Assigning a dollar value to solving a problem
©Copyright, 2000, Bob Ryan, About Purpose, Inc.
Estimate the cost of not solving the problem, dealing with the situation or resolving the issue:
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Hard costs: (Estimate in actual dollars)
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o Lost business, or lost business opportunity, loss of market share
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o Service or material rework (include personnel, travel, parts replacement, lost production time, etc.)
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o Material waste
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o Interest or late fees on payables or loss of same on receivables
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o Personnel costs of lost or duplicated time
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o Inadequate or inappropriate financing and/or debt structure
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o Below-goal sales performance
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o High employee turnover
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Hard Costs Total…….............………..……..$________
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Soft costs: (Estimate in value loss to the company, & in dollars if possible)
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o Lack of focus or direction; inadequate planning
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o Mismatch of company culture to company goals
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o Dissatisfied customers, employees, or vendors
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o Interdepartmental or interpersonal conflict
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o Slow concept-to-market cycle
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o Lack of creativity and problem solving skills
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o Lack of exit strategy and/or succession plan for key personnel
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Soft Costs Total………………………..........$________
Total Cost of the Problem.…...…………………………......…..$________
Price of the Solution.…...………………………………………..$________
Now, consider if and when you can recoup the investment in the solution, what the down side is of not solving the problem, and make your decision.