Drucker: Do Not Cut Back on Expenditures for Success in Hard Times
From Management Challenges for the 21st Century:
The most common, but also the most damaging, practice is to cut back on expenditures for success, especially in poor times, so as to maintain expenditures for ongoing operations, and especially expenditures to maintain the past.
The argument is always: “This product, service or technology is a success anyhow; it doesn’t need to have more money put into it.”
But the right argument is: “This is a success, and therefore should be supported to the maximum possible.” And it should be supported especially in bad times when the competition is likely to cut spending and therefore likely to create an opening.
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About Matt Perman
Follower of Christ. Husband of one, father of three. Former director of strategy at Desiring God. This blog exists to help equip Christians in good works, because that's what productivity is really about.
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Last year, when giving was way down (I work at a non-profit)and we had people laid-off, my boss hired a new person for a key position. Our whole ministry immediately improved. It was gutsy and worked.
Nice.