Good | Cheap | Fast

How many of us like to have something Good, Cheap and Fast? The truth is I want to have it myself too, but the reality is often not the case. There are bound to have consequences in demanding to meet all of them.

In most circumstances, to achieve 2 of the criteria, we must sacrifice one and decide what we can forgo. However, if we look deeper into certain situations, that might not even be the case. So let’s take a quick look at some of the situations.

Good & Cheap but Not Fast

Singaporeans like to travel around for food, and most don’t mind waiting in the queue. For a plate of Char Kway Tiao (Fried Flat Noodle) from a famous hawker store, one can queue for at least 30 minutes. The taste of the dish is superb and cost around USD3.00 per plate. It is Good, Cheap but you need to wait for your food. However, if the owner decided to hire another assistance or increase production speed, you might need to pay a higher price for the same food.

The question is, are you willing to pay more for it?

Cheap & Fast but Not Good

I have tried engaging someone for software development work. It was cheap, and the development team promised a fast turnaround; I decided to try it. Unfortunately, the outcome is terrible, and the developing team argued that they have met all the requirements stated.

What we are developing is a mobile communication app. However, while the functions are there, it is not stable, and the connectivity breaks consistently. The developing team does not understand that a communication app cannot function properly without a consistent connection.

Yes. It is Cheap & Fast and meets the scope, but if you are the customer, will you accept work of this quality? I am a Project Manager (PM), and I have delivered this within Scope, Schedule, and Cost. However, a PM must not solely defend against those. The eventual outcome of the project is customer’s satisfaction. If the project delivers all the requirements but failed in satisfying the customer, the project failed.

The question is, can you accept anything that’s not Good?

Good & Fast but Not Cheap

There was an important document that I need to send to my boss in Korea to sign. I need to return this document to the customer, signed by my boss, within a week.

For this task that’s time-critical, we use the service of DHL, which is very reputable and so far never failed me. They can deliver the document by the next working day, signed by my boss, and the paper will be on its way back to Singapore that evening.

The service was not Cheap but Good & Fast, and most importantly, reliable. This document affects the execution of a project that we are running with a major client, and the project spans multiple countries in the APAC.

We need to weigh the importance and mustn’t be penny wise pound foolish.

Long Term Value

Let’s imagine a scenario to take this Good + Cheap + Fast motion further. This story was shared with me by a friend, which is very relevant in this article.

Company A has offices in different places around the world, including a factory in Singapore. The Singapore factory manufactured specialised components for heavy industry, and the typical lead time is around 10 weeks upon customer’s order. Meaning that customer can only have their purchase 10 weeks after they made the order. So far, there isn’t any quality issue, and the customer’s feedback was positive on the products.

The management of Company A wants to maximise their profit and decided to shift the production away from Singapore. They have relocated this factory to a Middle East country, paying a much lower cost for labour and factory space. On the paper, it was huge savings (Good & Cheap) for the management, and the figure looks much nicer.

However, at the ground level, things started to happen. Customers feedbacked about the long lead time, and it takes 3 times longer now for the customer to get what they want. Making things worse, the customers face a quality issue after using the product, which directly impacts their operation. As a result, company A might lose its reputation in the industry, and the customers are likely to switch to a more reliable supplier.

Overcoming the Temptation

It is perfectly normal to seek more significant revenue and lower operational costs to maximise one’s profits. However, we need to see beyond the tangible value and focus on the intangible value.

Cost-cutting measures must not have a detrimental effect that it affects the company’s creditability and reputation. We can have a creative approach in either levelling up the perceived value or streamlining the process to trim processes that do not contribute to the intended outcome.

A business relationship is also dependent on each other, even when one is a vendor and another a customer. Imagine if you are constantly pressing your vendor for price and demanding their quality and speed. There will come a day where the business will not be viable for them. Yes, you may find another replacement for a commodity product, but what if that’s a strategic component, regardless of software or hardware. The impact on your business could be huge, and there could be opportunity costs when you are working on a replacement.

Overcome the temptation to look at short term gain, instead focus on the long term course. Fight to win the war and not just the battle.