There are many management rules, but most of them are locked behind bars. It is very risky to whisper about management rules; it is even more hazardously to be open about management rules. This rule however is harmless, yet effective. It is so simple, that most people forget to use it. To perceive the strength of it you only have to think about some of the latest issues, either private or business, you have been dealing with regarding spending money on different presents or small investments. You had for example 100 dollars to spend. Your budget. Then you went shopping and you started buying. Just before closing hour you saw this remarkable present. In fact you were looking for it for some longer time, but you had forgotten about it. And then you remembered that you had spend 95% of you budget. And this particular item needed a lot more than the five percent that was left in your pocket. So now you will say, We can borrow! No you cannot. And this is not because of the already huge deficit problems and a possible breakdown of the dollar if this continues. No. You cannot borrow, because in business and this is the budget-rule - thats the name - it is about using all different kind of resources. Not only money. You can maybe borrow money, but you cannot borrow time. At the end of the project, your time is just gone. You should have thought about this when you were preparing for your choices. When preparing the strategic plans. One choice will often exclude many others. You have only one budget and with that you have to defend your choices. Thats all there is. 2006 Hans Bool |
