It’s tempting, in a yo-yo economic climate, to slash costs and investment across the board. But don’t! Instead, get selective, get lean. Discretionary spending is negotiable. Brand building, innovation and product development are not.
That’s what business advisor and speaker Ram Charan says in his Fortune magazine article “Managing Your Business in a Downturn.” Charan tells us that we must “keep building” even during financial downturns.
“When the top line looks shaky and the bottom line worse, the temptation is to go after discretionary spending. Fine—but do not consider product development, innovation and brand building optional. Sacrificing your future for a slightly more comfortable present is not worth it. If you keep building, you can come back strong,” he explains.
Invest in innovation. Charan’s article appeared four years ago. So, what has changed? Not that much, really. The economy is still suspect. The stock market continues its ups and downs, only now we have the added concerns over the situation in Greece and an Iran that threatens to become a nuclear power.