Strategic Expenditures (StratEx)

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John Gross

Strategic Expenditures (StratEx)

A useful recommendation by Robert Kaplan and David Norton is to create a new expenditure category to protect strategic investment projects and assets from slash-and-burn cost cutting exercises during the economic downturn: "Strategic Expenditures" or "StratEx". In this way, long-term strategic initiatives or programs can be protected when operational inefficiencies have to be rooted out.
Source: HBR December 2008, p.28

  David G Wilson


In the modern world of economic downturn and business speak such a simple (dare I say common sense!?) solution could be a means of managing that particular and very real risk.


StratEx Additional Expenditure Category

Thank you John for sharing this indeed practical tip from Kaplan and Norton. This idea will be useful for current as well as future cost cutting periods.

  Sekar Vedaraman

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