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Two of Your Ops Staff Are Copy-Pasting Full-Time. Here's the Cost.

Manual admin does not only cost salary. It costs cash cycle, error rates and the capacity you were about to hire for — which makes automation a revenue-per-employee play, not a cost-cutting one.

Fabien DarollesFabien DarollesOperations Expert

Three costs, not one

Five operations staff spending 40% of their time re-keying between systems is two full-time equivalents, or about €160k a year of pure transfer work before you count errors.

Then the cash cycle. Days sales outstanding of 62 against a possible 35, on €12M of revenue, ties up €890k of working capital. At an 8% cost of capital that is €71k a year — and it is precisely the working capital you were planning to borrow to fund growth.

What is now routinely achievable

Proposal and quote assembly from four hours to twenty-five minutes. Monthly client reporting from days to a scheduled job. First-draft support responses. Invoice generation and dunning. CRM enrichment.

Sequence matters more than tooling: delete steps, then simplify, then automate. Automating a broken process locks it in and makes it more expensive to change later. Typical payback on a well-chosen process automation is three to seven months; anything longer than twelve is a technology project rather than a business one.

Frame it as capacity, not redundancy

Owners position automation internally as headcount reduction, which makes it politically radioactive and stalls it. Frame it as capacity: the same team, 40% more clients, no hiring round.

And most "we need a new system" conversations are really "we have never written down how this process works" — which is why the last system did not fix it either. The second-order effect is that revenue per employee rises, and that raises your multiple. The automation pays twice.

What to do Monday

For one week, have every operations person log their work in thirty-minute blocks. Rank tasks by total hours. The top three repeated tasks are your automation backlog.

Fabien Darolles
Written byFabien DarollesOperations Expert

Has run organisations above €100 million in revenue with teams exceeding 10,000 people.

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Q&A

Questions we get asked

What does manual admin actually cost?

More than salary. Five operations staff at 40% re-keying is two FTEs, around €160k a year — plus working capital: 62 days sales outstanding against 35, on €12M, ties up €890k.

What is a reasonable payback period for automation?

Three to seven months for a well-chosen process. Anything longer than twelve months is a technology project rather than a business one.

Should automation be presented as headcount reduction?

No. Framed that way it becomes politically radioactive and stalls. Frame it as capacity — the same team handling 40% more clients with no hiring round.

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