We need Quality Growth - Let's start with Frugality

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.

• 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?
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Source: ​
15 Frugal Life Skills to Master in 2023, New Trade U