The first budget cuts: innovation and market research

When confidence erodes in the company financials, what are the easiest costs to cut?

Usually innovation and market research.

The problem people have with both is a lack of short term results.

Sure it felt good to make the numbers more palatable today, but it hides a future reckoning.

Companies that refuse to stay close to customers and don’t work on different things to create value are stubbornly protecting the status quo. It’s also called complacency.

Perhaps instead of cutting budgets, we should be changing methods instead.