UK supermarket chain Tesco announced it intends to create 20,ooo new job over the next two years through “significant investment in customer service, refreshing existing stores and opening new ones”.
That word – investment – is the key to business growth. Not whining about the internet stealing jobs or begging the government to bail out failed industries and their managements.
Investment is more than just buying a shiny new machine, it’s also research, development, training and educating a business’ management, staff, suppliers and customers.
Too many businesses and governments are locked into the the 1980s mindset that investments, along with things like customer service, are a cost that that has to be driven down.
Driving down costs was profitable for many managers through the 1990s and early 2000s, in fact we could argue this was one of the big drivers of corporate profits and productivity through that period.
While some of those costs were undoubtedly unnecessary and deserved, it’s now clear that many governments and businesses ran down investment as well.
Today we’re seeing the results of that; crumbling infrastructure, skills shortages and businesses that can’t compete in a changing global economy.
What we invest in our businesses – be it time or money is essential to its long term success. Only the biggest companies in the most protected industries can survive for a while without investment.