Budget Workshop Open Thread 2

Last night the Engineering budget was scrutinized. There were some good questions, I learned a thing or two, and there was much less shouting at the TV. However, I observed a fundamental error in thinking and that is the tying of salaries to permit revenues. This is one reason we got into such a mess in the first place, by trying to match up fixed costs to variable revenues. Sure, there’s a relationship but it can’t be as direct as saying we will hire as many people as will match the current revenue level, because then we have to cut ruthlessly when revenues are down–and as you can see we are quite terrible at it. There’s a better way. Continue reading Budget Workshop Open Thread 2