Spend five minutes a week worrying
about money, no more.
One chief executive (who had better be nameless) told me, “Money is
boring. I leave it to the accountants to sort out. I spend all my time with
my employees and my customers. That’s where I do the biz and that’s
how I get the buzz!”
Regrettably, money has become an obsession in many companies,
especially with regard to cost cutting. As we all know money (let alone cost
cutting) does not bring happiness in an organization. What does is a growing
number of satisfied customers served by motivated and high-performing
people. Revenue, profit, and shareholder value are the important by-
products. This is the critical “money mindset” for doing the biz.
In developing this mindset it is important to differentiate between
“bad” costs and “good” costs. Bad costs lead to inefficiency, poor
service, and low quality, and therefore should be eliminated.
Good costs, in contrast, bring value to the business in terms of
efficiency, customer satisfaction, quality, and morale. This in turns leads
to revenue generation. Sadly, too many organizations fail to differentiate
between the two and thus cut back on good costs to the detriment of
the customer and the business.
For example, there is an international five-
star hotel chain where staff used to provide
a complimentary bottle of mineral water by
the guest’s bedside. Now they don’t.
Management has cut down on the toiletries
too—there are no longer bottles of
hair conditioner in the bathroom. Nor
do they put chocolates on the pillow.
In the lounge they used to put paper
coasters under the cocktail glasses as they
served the drinks, but they have stopped doing
this. They also used to put a vase and flowers on each table; no longer.
The furniture has begun to look tatty and needs refurbishing, but has
not been renewed. Customers notice all these little details and slowly