Thursday, April 19, 2012

Since when is a small house an inappropriate analogy

Multi-billion dollar companies in this market obviously need to be very conscious about their spending, their investments, their budgets. People get upset when banking executives for example get million dollar bonuses, while entire divisions get laid off. Companies should indeed pay due diligence what they are assigning money to.

But when deciding that, they should have apt and fitting arguments to do so. The next time I hear a budget owner (in a multi-billion dollar company remember) complain about a 150K budget, and drawing a parallel to the cost of a small house or a fairly expensive sports car, that person will catch a shit storm of angry home/car owners. Obviously 150.000 dollars in any shape or form is real money, but its weight is several orders of magnitude different for a single consumer, than for a DJ exchange listed Fortune 500 company.

150K for such a company is not the same as 150K for you and me personally. So don't dare compare the two by looking at a commodity at that price. 150K for such a company is chump change. It's navel lint. A company's creative bookkeeping can probably already net you that amount. I have to work VERY HARD to get to that kind of money. Don't insult my time and effort by making decisions based on analogies that simply don't hold a candle.

People ask companies to be careful with money, which is all well and good. They should also be careful with respecting that money, and not simply write it off with an inappropriate analogy.

Monday, April 16, 2012

Humbled

Just for some perspective, everybody should browse through Scale of the Universe 2 at least once.

If you don't come out of that experience humbled, you don't have your head screwed on correctly.