This seems irresponsible and unwise when you have substantial fixed costs, all necessary for core activities, and not much in the way of back-up resources. I can see it feasibly leading to a bunch of problems, including (a) the incentive to save up financial resources rather than put them to use toward high-EV activities and (b) difficulty hiring staff smart enough to realize that the resources from which their salaries are paid out will be highly variable month-to-month.
Well again, it depends on what the organization’s preferences are. How important is it to keep the doors open if the organization is not really accomplishing what it set out to do?
This seems irresponsible and unwise when you have substantial fixed costs, all necessary for core activities, and not much in the way of back-up resources. I can see it feasibly leading to a bunch of problems, including (a) the incentive to save up financial resources rather than put them to use toward high-EV activities and (b) difficulty hiring staff smart enough to realize that the resources from which their salaries are paid out will be highly variable month-to-month.
Well again, it depends on what the organization’s preferences are. How important is it to keep the doors open if the organization is not really accomplishing what it set out to do?