Our reader poll today asks: How often is your organization “penny-wise and pound foolish?”
- All the time. We save a little money here but at the expense of important things like quality 42.55%
- Sometimes. We’ll pinch pennies on less important things but generally spend on important stuff 47.51%
- Never. We always look at the broader implications of spend decisions and make good choices 9.94%
Save now, pay later. A striking portion of respondents (43%) say your organizations focus more on savings than on the longer-term implications of saving a few bucks in the near term. This is usually a costly strategy. What does a lack of quality cost? What does rework cost? While budget and cost pressures are always prevalent, you need to understand the implications of being cheap and how it can cost you more money in the long run. If you’re the person trying to get money to spend, present the cost of skimping on quality as part of your business case. If you can show the negative impact of that short-term savings, you might be able to influence your approving authority to spend in a more thoughtful way.
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These results were originally a SmartPulse poll in SmartBrief on Leadership which tracks feedback from more than 240,000 business leaders. Get smarter on leadership and sign up for the SmartBrief on Leadership e-newsletter.