Cost of "Not Improving"
Sometime ago, General Electric (GE) was dropped for the first time from the Dow Jones Index in over 110 years. Also. GE happened to be the last original member of the group when Dow Jones started. If one looks at the The Dow Jones Index of 1999, one would find that about half of the companies there have been replaced with others in just last 20 years.
What it shows is that in today's rapidly changing business environment, an organization has to continuous keep on adapting itself to survive & be relevant in the marketplace. In spite of this, many organizations function at a very slow pace & in a very rigid manner not realizing that it can prove very costly in the long run. Delay in taking decisions, losing opportunities, waste in operational processes, wrong selection of people etc are the symptoms of the work culture of such organizations.
Such kind of working may be alright when things are alright but can be disastrous in case of any adverse conditions. This "Cost of Not Improving" in an organization's functioning, culture & mindset can threaten the very survival of the organization & also can make the organization severely suffer in the following ways:
- Slow decision making due to multiple layers of decision making or due to a "person specific approach" rather than a "process specific approach" could result in costly delays in taking critical business decisions
- Not taking timely actions, thus encouraging a "bureaucratic culture" in the organization which encourages just pushing files from one desk to another, rather than approving them quickly
- People at important positions are appointed or selected based more on "personal preferences" or "personal connections" rather than their abilities, qualifications or experience
- Cost escalations due to delay in decision making
- Taking temporary short-term measures for long term problems
- Doing patchwork solutions where deep surgery is required
- Taking action only after a problem becomes a crisis
- Not keeping up with the competitors product offerings & decisions even if its affecting your own business, branding & market share
- Giving low priority to preventive measures to address problems
- Not taking suitable action to maintain your competitive edge in the market
- Lost opportunities due to lack of timely decisions & action
- Endlessly waiting for information
- Very less or lack of interaction with vendors severely undermining their own capabilities & advantages.