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Permanent Reminder of a Temporary Feeling

Okay, I stole that from Mr. Buffett, like I do many of my good lines.

However, it is appropriate as the dreaded budget season nears and once again the business model most people use is cut costs (heads) figure it out later. This is not a business model, it is a single period band aid.

The reality of the new global economy is just that, global. You can hide from it, hope it goes away or even listen to politicians who claim to care but have no intention of doing a thing. Not a good strategic decision in the free market economy my Friedmanites.

You must consider all new venues to bring better, faster and cheaper product to your clients or they will find it someplace else my friends. Do you think your competitors are content? Not doing much of anything? Wrong!

A good example is to surf the web for software, where you can find ERP with big time functionality for $95 bucks a month. Do you think SAP isn’t reacting to that, or doesn’t have a palatial research center in Bangalore?

It can be technology, capital equipment, new products and better ways to get things done. The available talent on the world stage is large, and sure it may also cost less, but when productivity and cost per unit continues to drop long after you offshore your budget will notice the difference in the form of EBITDA margin where it counts.

Changing you business model will live through the five year budget, not just 2011. Do you want to be a budget hero in your organization or be told to cut a couple and deal with it?

Please come by and see us at NAPEO to learn how. It isn’t for everyone, but the good news is we are already there and have done this several times, so our advice will be based on experience and honesty not “sure we can do that”.

Safe travels and watch those bulls.

 

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