I strongly believe that a company does not need to spoil resources to have a strong brand or be competitive Yet, we keep seeing companies spending and spoiling more than they can afford. Working for cost sensible companies gave me an insightful position on this matter, but never inhibited me of focusing on quality or brand image. Therefore, I still believe that if a company wants to face successfully the challenges ahead, it needs Leadership not vanity, and a culture of cost sensibility and frugality, instead of one based on waste .
Cost sensible does not mean less quality or weak brands, it means instead a sensible management of expenses. A company does not need to have expensive offices, latest state of the art fleet, or exquisite furniture to run a business successfully! It needs instead an informed and well trained team willing to be creative and innovative without a millionaire budget, and always committed to be lean and customer-oriented. More important, it needs a leader who uses the companies assets wisely and productively.
A cost-sensible and frugal culture can work as a way of freeing up resources to invest in new capabilities and gain stronger competitive advantages. Obviously, for this to happen the company must re-invest the freed-up resources in crucial areas such as innovation, creativity, uniqueness, talent management, R&D or other that can add uniqueness and factors of differentiation.
I strongly advocate that a cost-sensible and frugal culture as a competitive advantage factor and a brand saviour.