Wednesday, July 19, 2017

Cost Centre

Google turned the advertising world on its head partly because it stopped adverts being a cost. If you are confident that $1 out leads to $1 in, you are happy to spend Eleventy Two Million Dollars. If you don't know that, each cent spent hurts. In a money driven world, there is a massive incentive to shift attention towards things you can count. If you can count it, you can control it. Part of why I like the idea of separating the engine is that you never want to be a Cost Centre. Spending a dividend is different from being paid a salary. A salary treats labour as an input. A cost. A dividend means you are an owner. A big driver of 'internal capitalism' is to drive down costs. For a person who sees what they are paid as a measure of their value, this is never going to be a fun place to be. Rather build an engine.


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