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Impulse buying of anything should be out and stricken from our thinking. But, it continues to cling and we oftentimes in executing our leadership responsibilities latch on to this tendency because it makes us feel good...at least on a short term basis!
For example, we engage employees or executives because they have most of the qualities that we are looking for and the price is right! Shortly after, the revolving door moves swiftly and the individual(s) exits resulting in no return on our short-lived effort.
Another example could be investing in software to boost the capability of existing computer systems, only to find out subsequently in a month that a new generation of the same product will be released for less cost with a better warranty. The Bottom Line is that shopping for value takes time, research to check the facts, the expenditure of up front dollars and cents and more.
Over many years, I have taken a pause and asked myself a few questions to support responsive purchasing of anything. See below for a few thoughts that may be useful to you:
1. Do you really need the item
(tangible or intangible) that is to be purchased?
2. What will change, be different or require adjustments
once the item is purchased?
3. Is there any exposure from purchasing the item?
4. Does the price of the item align with your budget
and what are the costs of maintenance?
5. What will the perceptions of others be once the item is purchased?
6. How does the item fit with your short and long term goals?
7. What are the consequences of passing by the item to be purchased?
8. How can you leverage the purchase
to boost the value of another one?
Always on the front burner of my thinking about
Shopping for Value
are at least two Warren Buffet quotes:
"Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks."
"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."
Shopping for Value
is key to keeping a competitive edge that is shaped by internal and external forces in your landscape. Connect with Marilyn at 804.782.1938 or consulting@mhwest.com to help keep current with approaches and strategies.
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