Budgets suspended with unknown future
Categories: Financial Strategy
"When we look at the near future, the next decade for example, it is sometimes sort of a blank wall and I think that’s where a lot of businesses find themselves at the moment. They don’t really know what the future is like. So the evidence of this is they’re holding back on budgets. There’s more money in the world of work now than there’s been for a long time, companies sitting on piles of cash and their balance sheets looking pretty good. But they’re not spending it because they have a sort of mentality to say, “Well let’s see what’s going to happen.” And they’re doing that because they don’t know what’s going to happen. The old ways of looking at the future, the old ways of setting strategies, which is essentially take 80% of what we’re doing already, try and improve on it to give me a 10% return on my annual investment of energy, and then we’ll all be okay Well that’s out the window, we live in a world where the old rules are no longer applicable."