What Are the Common Sources of Performance Overhead?
Several factors contribute to performance overhead in a business context:
- Technological Implementation: Adopting new technologies can introduce additional complexity and require extensive training and support. - Process Inefficiencies: Inefficient processes can lead to wasted time and resources, increasing operational costs. - Regulatory Compliance: Ensuring compliance with legal and regulatory requirements often involves additional administrative tasks and documentation. - Human Resources: Managing and training employees, along with addressing workforce-related issues, can add to performance overhead. - Supply Chain Management: Coordinating with suppliers, managing inventory, and logistics can introduce complexities and extra costs.