Credit people, debit people 12:38 on Friday
There are two kinds of people in any corporation:
- Those who make money for the corporation
- Those who spend the corporation’s money
Credit people and debit people.
Some people who might be in those categories are:
- Sales people who close deals that bring in money, managers who improve efficiency to make more money, creatives whose ideas are worth more than the time they spend
- Human resources, R&D, analytics, IT support, and according to the book Markkinoinnin musta kirja, marketing
Etc. I could probably continue the list if it wasn’t half past midnight while I’m writing this.
The point being, when the corporation hits a rough spot, where do the managers go to create savings? Well, the obvious choice is to cut the people who only spend money and not make it. Markets behaving unexpectedly? Let’s get rid of our analytics specialists! Utilization low? Let’s outsource IT support! New products not doing as well as expected? Cut the R&D budget!
Silly. Yet that happens. Reactive, not proactive.