Our economy’s last two major growth eras – the Clinton prosperity of the 1990s and the current expansion – followed the same pattern. Rather than investing in human resources, business people invested in technology that yielded unprecedented growth in productivity. So, while the economy was surging ahead, employment growth lagged. Finally, when the envelope of…

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Every investment has its own risk and reward profile. While this cautionary statement usually refers to investments between different businesses and asset allocations, it also holds for executives making budgetary decisions within their own business. Investments in production capability verses sales and marketing productivity have very different risk profiles. The high uncertainty and variability of…

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Is there an optimal level of expenditures in sales and marketing? A simple mathematical model of a business reveals that there is and what effects where it is. Assumptions In making any mathematical model, assumptions must be made regarding the business. Some assumptions are made to improve the simplicity of the model and others are…

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