"Time saved" as a business value justification

I am curious about the business value justification using "time saved." For example, if I do a project that saved one hour per person, each gets paid $100 per hour and there are 5,000 employees in the organization, I have just saved the organization $500,000. Right?

How much of that money do I see in cash? None. You are not going to ask employees to return that money to the organization. That's because you can't!

The real saving is realized if the time saved is spent on doing something that has a tangible return higher than the money saved. Lets say the time is reinvested in revenue generating activity that earns or saves hard cash of say, $150 per employee, then we have saved $250,000. (The gain is $50 per hour per employee)

The above is an example of saving effort (doing more with the same or doing same with less). What if an output is available faster? Instead of taking 10 days, what if you got the output in, say, 6 days? What is the value of reduced cycle time? For example, if I get book quicker when buying online, but I can't or don't read it for another month, then what did I gain from the faster delivery? Sometimes its just gratification (a subjective measure).

Because these computations are complex and sometimes the value of initiatives such as the Special Olympics cannot be quantified in money terms. In yet other cases, programs and projects are undertaken to reduce anxieties of customers, stakeholders and executives. The value case is complex to compute, yet it exists. Just because its hard to find does not mean it does not exist.

All the following are valid business justifications:

• Avoiding a problem
• Getting rid of a problem
• Preventing a problem

Be in the moment, focus on what is considered 'value' and go with the flow. If you have a strong opinion, use your influencing and leadership skills. Know when to cut your losses and when to tactically withdraw in the face of insurmountable irrationality to your definition of a business justification.