value for money: compounding fractions
Publicly funded organisations may treat funding cuts of a small fraction each year as a small trim to the budget—one that can be met by leaving vacancies unfilled, or deferring maintenance. But those incremental cuts compound over time. Although short-term tactics may save money initially, they create long-term structural risks that can undermine an organisation’s core mission and put it on an unsustainable trajectory. In this video, we explore how the long-term effects of incremental cuts can change the nature of an organisation in unintended ways, and a better way of responding that sustains a resilient, purposeful organisation.