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December 27, 2008

Cheap = Stupid

Frugality is wise. If you are going to maximize revenues then you need to be frugal, and I have posted a lot on this. But don't be cheap.

Consultancies, more than any other industry, needs to have good people. Your people are your brand - period. And when you are cheap, instead of frugal, then you cut the profits out of the hide of your talented workers.

You make them stay in cut price hotels for the long periods they stay away from their families...

You make them fly economy for 18 hour flights that they have to take every month...

And you work them to death instead of hiring additional resources... the resources you actually quoted!

This isn't smart. It might seem smart, but it isn't. You are cheap because you under-quoted, meaning your products, services or sales people can't compete; or you are cheap because you are greedy.

And those who can leave you - will leave you. But they won't leave their clients, our clients know it's all about talent. Thats what they pay for anyway, remember?