Profits and the crisis

In particular during the current economic crisis many companies tend to cut down costs to preserve their profitability. In such moments areas are under fire, „which do not add immediate value to our bottom line“.

Here some examples:

  • Cancellation of xMas parties, and fringe benefits to employees
  • Stopping online corporate blogs and participation in communities
  • Making ‚“free“ products/services chargable
  • Cutting down social projects, or community support, etc

I assume that many of you know more examples of your controller’s creativity.

However the question remains: How much saving and profit orientation makes sense – or are there situations in which we shoot in our own knees, when cutting costs?

As I was was reading the examples in Dan’s article → THE SIGNIFICANT OBJECTS PROJECT, I thought „yes“, there are such situations. Some of these abovementi0ned investments add a story. And this story is what has a value.

BTW: The article is another reason, why we should look into the behavioral economics area, when designing products.

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