Strategic Advisory Tip: The 7 Essential Questions to Ask Before Spending Even a Penny
We are in the green age, the age of sustainability. A core principle of sustainability is the avoidance of waste. This covers many facets of the organization, but one, of course, is in spending. Conservative spending, in addition being a key practice of sustainability is a key practice of survival. Cash is an organization’s oxygen, its lifeblood. When it runs out, your organization is dead.
In our strategic advisory work, I recommend a policy, indeed a culture, that asks every team member to run through this analysis with every potential expenditure:
In considering this expenditure…
- Is it necessary?
- Can I delay it?
- Have I shopped around?
- Is there a way I can repurpose an asset we already own?
- Have I avoided waste?
- Is there a way to leverage it?
- Have I solicited input from team members?
…understanding that we will not materially compromise our commitment to our customers or to speed, efficiency and excellence.