Strategic Expenditures (StratEx)




Strategic Risk Management
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John Gross, USA

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
 

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David G Wilson, Scotland
 

StratEx

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.

 
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Mario, Italy
 

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.

 
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Sekar Vedaraman, India
 

Limitation of Strategic Risk Management

We can avoid, control, mitigate, eliminate, or overcome the risks which we can foresee. But when an ... Sign up

   

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