When Tactics Become Strategy
In EPC firms, profit is made on the margin between the charged rate and the paid rate. Overhead and idle time are dirty words. When tough times come and a tightening of the belt is necessary, the first to go is training and career development, along with salary freezes and delayed promotions.
These short-term tactics can produce satisfactory short-term solutions, but what happens when the crunch is prolonged?
Does lack of reinvestment contribute to long-term deterioration of project quality? Quantitatively speaking, this is hard to measure or to prove, even though there is some evidence that investing in “human capital,” leads to increased productivity and innovation.
What do you think?