Are you paying high 'Dumb Taxes'? Charlie Brindell, the CEO of TCR, was quoted recently by MFE as saying “If you try to build an organization as opportunities are emerging, you will inevitably stumble, you are going to spend a lot of money and pay a big ‘dumb tax’ if you don’t have people who know and understand these markets.”
Charlie Brindell obviously wants to tout TCR’s expertise in core markets,potential efficiencies, breadth, and organizational structure. However, his general notion of a “dumb tax” in reference to efforts that do not take advantage of the leverage of institutional knowledge, experience and learning curves is something everyone should think about in broader terms. Dumb taxes are prevalent in the industry – some can be abated and others are difficult to avoid. While, circumstances sometimes dictate organizations venture 'outside the box', some have gone so far outside they have lost sight of the box and forgotten what their competitive advantage is/was. While determing your strategic direction, don't forget about the 'Dumb Tax' (or where your box is).
