“If I need something for my people, I just buy it. It’s helping my business, so what’s the big deal?”
Truth is, it may not be a big deal. But, as you can imagine, if it happens constantly, it could be a serious sign of haphazard spending, costing the company more than it should.
If a leader uses an unstructured and reactive approach to spending, it might be sending a subliminal message to the employees that there’s no need to care for company property/resources.
A little money spent here and there can really add up and have a major impact on a company’s profitability.
I always suggest that a company start tracking their spending and on a regular basis, share with the team how much money is being spent in key areas. This opens an opportunity to show how that money could be going elsewhere, such as into a bonus pool.
When it comes to your reactions to finance issues, sometimes the seemingly little issues that appear to be “nibbles,” can really be taking a big bite out of your profits.
Stephen
Recent Comments