Frugality as a driver of growth - Part 2

It’s time to sort, make choices, and stop unprofitable businesses or tasks we still do ourselves because we’re experts—freeing up resources for new strategic projects. A little nod to my past as a trader: this is what we call “taking your loss or gain,” depending on the case, in order to quickly move on to a new idea with more potential! Doubling down, as SoftBank is currently doing with WeWork, is extremely risky.

Individually, we can save energy by doing “less but better,” meaning focusing on the essentials and applying stricter criteria to regain control of our decisions. According to David Meyer, a psychology professor at the University of Michigan, multitasking can cost us up to 40% of our productivity.

Regarding budgets, beware of thinking that “doing less” means across-the-board price reductions, particularly for your production or services. Today, consumers buy less in volume but choose higher quality for food and are willing to pay for it. I see the same trend in training, with demand for smaller, shorter, yet highly qualitative sessions.

Another area where companies can significantly save time, money, and gain efficiency is structuring and delegating repetitive, time-consuming tasks. Freed from much of the logistics and organization of their activity, leaders can focus on sales and delivery. I have implemented this approach myself and am very satisfied with it. The first step was to “process-ize” as much of my activity as possible and outsource parts of it, both regionally and internationally. In the end, I gained peace of mind and productivity, with better execution of administrative tasks and more effective calendar management—a true win-win.

But for all these management innovations to work, top management and leadership must set the example, or risk misinterpretation among employees… A case in point: François de Rugy and his lavish dinners at the Assembly’s expense—legal, but hardly exemplary!

What solutions for the company?

If selective sorting and energy savings are already part of your home habits, you can bring these practices to the office: limit printing to move toward a paperless environment, replace disposable cups with personalized reusable mugs, manage heating, turn off lights when offices are empty, and opt for organic coffee pods or organic tea—better for both people and the planet. I’m appalled that companies claiming to champion organic products or environmental commitment still serve non-organic coffee or tea in non-recyclable plastic cups!

The circular economy is a great way to reduce costs while giving meaning to employees’ work. According to ADEME, it is “an economic system of exchange and production that, at all stages of a product’s lifecycle (goods and services), aims to increase resource efficiency and reduce environmental impact while promoting individual well-being.”

Circular economy shows that giving meaning and reducing costs often go hand-in-hand and always rely, at least in part, on behavior change. Prioritizing trains over planes, reducing travel in favor of video conferencing, are simple steps leaders can take to set an example. Unfortunately, they are not always well received, as the HR director of a French multinational recently shared with me! Of course, you don’t have to sail to the U.S. like Greta Thunberg, but you can easily halve your travel while improving work-life balance.

The “less for better” approach is spreading in companies because all businesses face fixed-cost structures that escalate quickly if left unchecked. Just as leaders regularly review expenses, they must also question how they allocate their own resources: “What am I doing that doesn’t create value?” From experience, I encourage you to reduce the number of slides in presentations, limit the number of meetings or attendees, and cut back on travel. You’ll find life easier while doing good for the planet!

In light of what you’ve read, what is your #1 priority to implement your own form of frugality in daily activities, and what benefits do you expect?

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