Strategic Advisory Tip: The 7 Essential Questions to Ask Before Spending Even a Penny

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Strategic Advisory Tip: The 7 Essential Questions to Ask Before Spending Even a Penny

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.

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