Pennywise and pound foolish

Pennywise and pound foolish

One definition of the phrase "pennywise and pound foolish" is to "describe something that is done to save a small amount of money now but that will cost a large amount of money in the future."

I think of this a lot when working with my clients, especially when they are making decisions about technology. (And if I'm being blunt, I see it most among those in the finance area.)

The "price to entry" for a lot of technology can be (perceived as) very high, especially if the organization has been spending little to no money on technology for a long time. I've had more than a few clients who, having not paid much of anything for technology for years, have sticker shock when they find out how much a modern AMS is going to cost them.

But often what they're not taking into account is the incredibly high indirect costs of spending so little on technology. For example, I once had a client tell me that she had staff actually resign from their jobs because, as the staffer put it "our poor technology makes it almost impossible to do my job."

So when you're investing in technology, you really need to think of it as an investment, not just an expense. The money you think you're saving now will likely have to be spent later, and quite possibly even more.

Wes's Wednesday Wisdom Archives

Motion vs. Action

February 14, 2019

In James Clear’s book Atomic Habits (I recommend it!), he discusses the concept of motion vs. action. […]

Are You Answering Your Calls?

February 7, 2019

I’ve written about this before, but apparently I have to keep repeating it. If you’ve […]

Who do you trust?

January 31, 2019

Who Do You Trust I was reading an article recently about Warren Buffet’s “rules” for […]

Set benchmarks to measure progress

January 24, 2019

It’s impossible to measure progress if you don’t know your starting point. This sounds axiomatic, […]

You’ll make incorrect decisions. Acknowledge them and fix it.

January 17, 2019

A client of mine recently wrote the following to me: “It’s so hard to set […]

"Experience is unobservable to everyone except the person who it happens to."

January 10, 2019

In Dan Gilbert’s book Stumbling on Happiness, he writes: “Experience is unobservable to everyone except […]

Know Your Audience Before You Speak

December 20, 2018

This one may seem obvious, but when you’re speaking to anyone, whether it’s one person, […]

"Behavior is a function of the person in their environment."

December 13, 2018

Lewin’s equation says “behavior is a function of the person in their environment.” (He was […]

Signal-to-noise ratio

December 5, 2018

Signal-to-noise ratio Signal-to-noise ratio, formally used, applies to electricity and engineering, and refers to how […]

Consultants bring perspective

November 28, 2018

Consultants bring perspective At a recent speaking engagement, I was asked what I think is […]

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top