If a little is good, then a bunch must be better, until it isn’t. I was having a conversation on the train the other day on the way home from work. I was sitting with an acquaintance that I ride with from time to time and we were both complaining about the week we were having. And we started to realize that we were both frustrated by a similar problem – but seen from a different view.
My friend told a story about how he had to travel on business and how he had found a hotel closer to his client’s offices so he wouldn’t need cab service. The problem was that the hotel was not part of his company’s preferred vendor list, and it was $10 more expensive than the hotel 30 minutes away that was preferred. His experience from previous trips showed that he spent $45 on cab fair, so the net savings would have still been $35. So far, so good. However, since the hotel was not a preferred vendor, his expense needed management approval. So he went to his manager, and yada, yada, yada – the CFO of his business unit had to sign the form before he could get his expenses approved, even with a $35 savings. My guess is that that the cost of all the management attention on this expense cost his company something close to $250. So much for the $35 savings – his little deviation from policy cost $215.Continue Reading