A Better Metric for the Value of a Worker Training Program

Harvard Business

We need to adopt something similar to a “total cost of ownership” (TCO) analysis. Now common in industry, TCO considers both direct and indirect costs over time. Applying a form of TCO to workforce programs makes sense because, instead of concentrating on inputs (in the form of spending), this approach emphasizes outcomes (in the form of long-term results).

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Procurement's Best-Priced Deal May Stifle Innovation

Harvard Business Review

Procurement couldn't help but manage its selection criteria differently if it operationally lived with the knowledge that getting the best-priced deal was no longer good enough. In the same way that acquisitive organizations have become more savvy about TCO — Total Cost of Ownership — they should rethink TCP: the Total Cost of Procurement. The real-world drawback with this declaration of innovation interdependence is neither cultural nor operational.

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How I Learned the Hard Way That Aging Technology Is Expensive

Harvard Business Review

Then the family's CFO, my wife, who also happens to be a CPA, demanded to know their TCO. cost of improving the operating systems; unfortunately, the new OS could not be loaded from the internal CD drive and required an external DVD player, which cost $120. Companies love to stretch out their investments in existing technology as long as possible, a policy whose faulty logic I recently rediscovered in my role as CIO.

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