1. Running out of cash often implies changing direction because the plan that lead to the current state did not meet the timeline. Changing direction means that

1. Running out of cash often implies changing direction because the plan that lead to the current state did not meet the timeline. Changing direction means that the some current job roles don't align with the future. 2. Even if the course remains the same, the organization can embody past decisions that are no longer relevant. For example, roles addressing earlier problems that are now sufficiently solved (with sufficiency in part determined by cash on hand). 3. Even if the course remains the same, a cash crunch can force hard decisions that were delayed by ample cash on hand. For example cutting objectively excess staff might have been avoided for its effect on moral. Running out of cash makes negative effects on moral a given. Consider the effects on moral. Cutting salaries keeps all the negative effect on moral in the workplace. Cutting staff sends some of the negative moral effect out the door and there are fewer people to convince to stay.