We need Quality Growth - Let's start with Frugality
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As a change management professional, I have been more than necessary in projects that focus on cost cutting. And I have to say, these projects are mostly frustrating, destroying value, and won't contribute to the long-term success of any company.
What is the alternative approach? Focus on maximising value creation with the assets we have! Which helps organisations to focus back on quality growth. |
It is great to have a growth mindset and I fundamentally subscribe that the 'sky is the limit'; we should seek to deliver the best we can, unleashing our potential! At the same time, we also should acknowledge that resources are limited. And this goes beyond financial resources; the resources of our planet are limited; and our people resources are not here to be exploited. We need to protect these resources and enable them to create maximum value. This change will establish a platform of substantial growth and long-term business success.
Frugality - the careful use of material resources - fits very well into this picture. Practising frugality will lead to self-sufficient and sustainable operations. With this, teams create an increased sense of accomplishment, confidence, and security. Something that excessive spending and consumption rarely provides.
How can we go about this? I recently came across this article outlining frugal skills for individuals; here is my adoption for teams that want to give their best. And I want to start with a few very simple principles: no laziness, no short-cuts, reduce convenience, no disposability. Focus on Quality.
Frugality - the careful use of material resources - fits very well into this picture. Practising frugality will lead to self-sufficient and sustainable operations. With this, teams create an increased sense of accomplishment, confidence, and security. Something that excessive spending and consumption rarely provides.
How can we go about this? I recently came across this article outlining frugal skills for individuals; here is my adoption for teams that want to give their best. And I want to start with a few very simple principles: no laziness, no short-cuts, reduce convenience, no disposability. Focus on Quality.
- Understand your top revenue and cost contributors; the revenue is related to the value you create and the cost contributors to the resources - a great start to focus on maximising value and quality
- Review what your existing resources (i.e. people) can do; there might be hidden talents within your workforce; a potential to unleash
- Source locally and items that bring long-term value - procure raw material, machinery and people with a matching quality
- Source from the source; very rarely do agents contribute real value
- Focus on repair and repairability; recycling is actually overrated; try to fix what is broken; focus on buying products and machines that can be repaired
- Review your energy efficiency; that goes beyond electricity
- Switch to low carbon transport; something that will pay off big time in the near future
- Whenever possible, buy non-virgin source material; this is the first step to a circular economy and will significantly reduce your cost
- Direct your investments into long-term, win-win opportunities; the short-term buck will only drain your energy (and increase your risk)
- Finally, and maybe most importantly, minimise any waste! This can go from reusable food packaging, to window insulation, to avoiding useless meetings...
A long list intended as an inspiration to switch from short-term results to long-term success; from opportunistic cost cutting to quality and value creation. And finally, to establish a work environment that unleashes potential and hence sustainable growth.
Where will you start to be frugal?
Source:
15 Frugal Life Skills to Master in 2023, New Trade U
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