Hey HR: Don’t Throw Good Money After Bad

[Photo credit: Stephen Rees]

On my way to work at iFractal World Headquarters I walk past a construction project on 17th Street in Philadelphia that makes me shake my head. It’s been in the works for over a year now, and they’re finally above ground level. For six months, all they had was a giant pit that was dug 30 feet into the ground. Guess what they’re building? A luxury apartment building. And when I say “luxury” I mean apartments that *start* at $3 million. Every time I walk past there I want to scream: FILL IN THAT HOLE. STOP WHAT YOU’RE DOING. MOVE ON TO SOMETHING THAT WILL MAKE YOU MONEY.

We’ve all been victims of throwing good money after bad in our HR endeavors. When we have a good idea we want to see it through. Damn the torpedoes, full speed ahead. That’s a bad approach in the good times; it’s a disaster now.

If you’re building a building that has no chance of making money, knock it down. If you’re putting on training that lost its relevance, pitch it out. If your pay plans and performance management encouraged the kind of behavior that got us where we are, toss them aside. Don’t stick to what you know just because it’s on a project plan. And while you’re at it, deep six your project plans too. They’re half the reason that people get tunnel vision — they have to check off all the boxes on their plan. (I’m not saying “Don’t plan.” I’m saying, step back every once in a while and critically examine why you’re doing what you’re doing.)

Throwing good money after bad is what got us here. It sure isn’t what’s going to get us out. Spend every HR dollar like it’s your own and you won’t go wrong.

Posted on December 3, 2008 by Frank Roche 
Filed Under Economy

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