o.k. shortish non-technical tweet thread this morning on capital Vs operational financial expenditure, because I only just learned a new way to think about it yesterday and it blew my mind. Maybe it's obvious to more, but it wasn't to me!
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Whereas with operational expenses: the organization can optimize costs on their own time, as and when the people or resources to do it are available. Wait for the quiet quarter, or whatever, do a "find some cost-savings" exercise, and make it stick as much as you can.
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This is *structurally* much better way of doing business. Simple example: You can train people how to look for cost savings on an ongoing basis; not just hope you have the person who was around the last time we bid for a big contract, etc ...
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I got all of this from a conversation with a CFO. Like I said, probably simple and obvious to many, but it wasn't to me. I never "got" that level to the whole thing, I thought it was just about budgetary math. But it makes total sense. End-of-thread!
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End of conversation
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