> My current organization has 8000 staff members, and I used to glance over the usage metrics of the dashboards my old team produced. I believe three dashboards were used, out of somewhere around 50 - 100. Of those being visited, it usually turned out they were being visited by members of our team checking to see if the data had refreshed for the day. I'd estimate the cost of maintaining our team was approximately $1…
Can anyone here look at " identify a change which improved employee efficiency by $125 annually " and think it isn't going to be complete bullshit? That's in the region of 50c/day. "I told employees to reuse paperclips which I predict will save the company $1M per year"[1] PR/marketing/self-promotion - surely nobody believes it?. And that saving 50 cents per day is supposed to come from a manager who can influence al…
The point isn't whether $1m is significant to an individual employee. It would make a massive difference to almost any employee on a personal level (except maybe for C level in massive companies), but in a company with 8000 employees, $1m is a rounding error. Even looking at the example you quoted for the average UK income (currently £33400), for 8000 employees that's £267m or $323m just in salaries. When you consider all the other costs of running a business on top of that like buildings, light, heating, expenses (generally accepted wisdom is that a salary is about 50% of the overall cost for each employee), then factor in the material costs for whatever the company is doing, that $1m really is insignificant in the grand scheme of things from the company's perspective.
Average US salaries are higher than the UK at around $59k, and tech salaries are obviously higher, and in the US even more disproportionately so, making this $1m saving even less significant to the company.
The middle section of your post "If, in the lifetime of the specialist team like the kernel team, a single person found something that persistently reduced TCO by 0.5%, that would pay for the team in perpetuity" seems to be arguing a different point. It's not about whether saving the company $1m a year is worth bothering with or not, it's whether paying for a team that might cost $500k per year and can produce $1m per year in savings and/or revenue is worthwhile. Obviously, it is worth keeping the team as the ROI on their work is 100%. However the decision on whether to create that team in the first place is harder to justify because there is probably a more lucrative opportunity for the company to find - if the company is currently making e.g. 7% profit doing what it's doing, it probably makes far more sense to expand production capacity to increase total revenue as that will be be more significant to the bottom line than a small project that saves $1m.