A racecar has four forces acting on it that affect its top speed. The engine provides thrust or forward momentum, overcoming weight. As air flows around the car, it generates lift (although not enough to cause it to become airborne.) Finally, the atmosphere creates drag, the opposing force created against an object as it forces its way through the air. Drag often imposes a top speed on a vehicle. For instance, a conventional ship cannot go much faster than approximately 40 knots because, at that speed, the drag becomes so powerful that an impractical amount of energy is required to overcome it.

This is not too different from administration in business. Every business requires some administration. However, too much administration introduces operational or business drag. Businesses have a tendency to become too comfortable with over-administration, and it’s often the consumer who suffers.

A prime example of this occurring literally would be the ballooning cost of post-secondary education. A significant portion of the increase in tuition is due to the cost of hiring more and more administrative personnel. The number of administrative support employees relative to teaching staff and students has surged. This has fueled the skyrocketing price of tuition, which has been increasing at twice the rate of inflation.

On a decision-making level, this usually manifests as being too slow to adapt to changing circumstances. Toys “R” Us was famously caught flat on its feet by the online retail revolution. Toys “R” Us saw it coming but was too saddled with debt and was too slow to provide its own online alternative. The Toys “R” Us website was unable to get up to speed in time to save the company’s business model.

Administrative drag can affect behavior in negative ways operationally as well, especially in the realm of policy. Good administration retains accountability but allows for initiative on the part of lower-level employees. However, overregulation can suffocate business operations, limiting the problem-solving options of lower and middle management. Moreover, feedback from the lower levels of the business struggles to penetrate up to key decision-makers, often leaving executives in the dark about crucial issues on the ground.

Administrative drag can even ruin your work culture. Too many “chefs in the kitchen” can cause inter-departmental wars to break out as administrators become protective of their territories. Justifying their existence becomes a top priority, leading to a “compliance for the sake of compliance” attitude and institutional schizophrenia.

There’s another approach to dealing with your company’s administrative burden. Automate what you can and outsource the rest. CRMs such as Salesforce can remove the need for many of the menial day-to-day tasks. A dashboard can provide a 360-degree overview of your business, allowing you to gather feedback in real-time and unfiltered. Finally, roles such as IT can be outsourced, reducing HR and onboarding costs. To learn more about Administrative Drag, reach out for a free consultation at pfreeman@condotty.com to learn how Condotty can reduce your administrative burden.