I had a long conversation with a friend yesterday about cost cutting versus investment.
He was saying that you can get immediate financial benefits by removing costs. However this means that you’re reducing the feed and therefore not looking at the growth of a business.
Thinking of it in simple terms, if you didn’t feed a flower it would die eventually. Of course it could survive for sometime but the other flowers around the under one would get bigger, start to look better, stronger, more visually appealing through colour perhaps.
The same translates for any organisation, that if you do not invest in the basic requirements to differentiate, enhance perception, gain market share, and increase sales, then the future could look bleak.