My boss has an incredible ability to know the cost of everything. Like Dustin Hoffman’s Rain Man assessing a spillage of toothpicks cast upon the floor, he has a sixth sense when it comes to the ability to walk around the office and begrudge the cost of everything, from wages to washing up liquid.
I hear it’s not uncommon and is known in MBA parlance as being ‘tight as a gnat’s chuff’.
I’m aware there’s a recession going on, don’t get me wrong, but I’m also aware of the need to balance cost with something far more important – value.
The problem is, there are many people who are so clearly linear in their thinking that they are unable to see the bigger issue.
Consider this scenario: An employee asks for a pay rise because their part of the business is out-performing all others. However, you have put in place a pay freeze across the whole business. He’s requesting just £2,500, as much as recognition of his excellent work as anything.
However, in line with policy you say no.
There are those people who would look at that scenario and saying ‘good call’, seeing just the two options: pay the money and lose £2,500 or don’t pay and maintain the status quo. The same logic fits with pulling back perks and bonuses, reducing spend on social budgets, travel or client entertainment.
But it’s a pretty stupid boss who loses good staff or lets unrest impact clients or customers for the sake of £2,500.
Then there are those people who would look at that situation and ask: what happens if that person leaves? What happens if they aren’t motivated In their role? Who are their circle of friends? What influence do they have over staff culture and client or customer loyalty? The same goes with those other examples of expenditure.
Before showing off their ability to add up and spot which numbers are bigger than others - which actually a five-year-old could do - our bosses could all do with improving their understanding of value.
