The "Run to Fail" Mentality: A Parable of Neglected Human Capital in Modern Business

I was out for breakfast this morning with my partner. He's an electrician who now manages a large customer service department for a commercial electrical firm. He was telling me a story about a company he was dealing with that was operating using a "run to fail" maintenance strategy. I asked for clarity as I hadn't heard this term before in my career coaching or real estate world.

He went on to explain that in the world of machinery and engineering, the concept of "run to fail" is a strategy where an organization decides to continue operating a piece of equipment until it inevitably breaks down. Instead of preventative maintenance or investment in upgrades, the machinery is run until it can no longer function, at which point reactive measures are taken to address the problem. While this approach may seem cost-effective in the short term, it often leads to increased downtime, higher repair costs, and a cascade of unforeseen issues.

This got me thinking about the world of work and how this "run to fail" strategy isn't confined to the realm of mechanics; it has found its way into the fabric of modern business practices. Many corporations, knowingly or unknowingly, adopt a similar approach when it comes to managing their most valuable asset: their human capital.

I asked my partner to explain a little further as I was starting to make some connections between the breakdown of machinery critical for running a business and the burnout we see in the workforce today. He went on to explain that "run to fail" is always an emergency waiting to happen. Things don't break on a planned schedule. Air conditioners break when the temperature is the hottest when the equipment has to work the hardest and you need it most. I started drawing parallels as I thought back to my days as a landlord, not wanting to replace an appliance until it konked out and I ended up with a much bigger mess. A flood in the kitchen because of a dishwasher that broke or a furnace replacement in minus 20 when everyone needed a furnace and prices were inflated.

He then went on to tell me the story of a small custom cabinet business that operated a CNC (Computer Numerical Control) Machine to create these custom-designed cabinets. The new owner of this business was told by the previous owner that at the end of each day, the machinery needed to be cleaned so that dust wouldn't get in and ruin a gear. He got busy and instead of following these guidelines, he ran the equipment with occasional cleaning for the next year until the equipment failed. He had to order a part from Europe for the machine which ended up taking 2 months to arrive. His business had to close for 2 months, he lost employees, there was lost income for the business and he also lost an important customer and some of his valuable reputation.

In today's fast-paced and competitive business landscape, companies are often focused on short-term gains and immediate results. This often translates into neglecting investments in their workforce—whether it be in training, career development, or employee well-being. Instead of nurturing and empowering their employees, businesses may opt to "run to fail," pushing their workforce to the brink until burnout, dissatisfaction, or turnover becomes inevitable.

The consequences of this neglect are manifold. Just as a neglected piece of machinery eventually breaks down, overworked and undervalued employees can suffer from decreased productivity, disengagement, and ultimately, attrition. When employees feel undervalued and unsupported, they are less likely to innovate, collaborate, or contribute their best efforts to the organization. Moreover, the constant cycle of emergencies and reactive measures further exacerbates the strain on both the business and its employees.

While implementing alternative preventative strategies may require reallocating resources and accepting slower growth in the short term or, in the case of cabinet maker, spending a little time at the end of every day "cleaning the machine" the benefits are significant in the long run. A workforce that feels valued, supported, and empowered is more resilient, innovative, and committed to driving organizational success. This also means that the business is better able to create a culture of trust, transparency, and open communication that is essential in mitigating the cycle of stress and burnout. By prioritizing human capital investment, businesses can break free from the "run to fail" mentality and build a sustainable foundation for growth and prosperity in the long run.

This also requires a shift in organizational philosophy—one that prioritizes long-term sustainability over short-term gains. This begins with recognizing the intrinsic value of human capital and investing in strategies that foster employee growth, development, and well-being. By providing opportunities for training, mentorship, and career advancement, businesses can empower their employees to reach their full potential and contribute meaningfully to the organization.

In the end, I asked him why a business would choose to operate on a "run to fail" mentality if they knew the consequences. His response was "laziness, shortsightedness, ignorance or the simple idea that people never think it's going to happen to them. They think they are making or saving money, but in the end, they end up losing money, people, productivity or all of the above".

This serves as a poignant analogy for the detrimental effects of neglecting human capital in modern business. By recognizing the importance of investing in their workforce and prioritizing long-term sustainability over short-term gains, organizations can break free from the cycle of crisis management and cultivate a culture of resilience, innovation, and success. After all, just as well-maintained machinery is essential for optimal performance, a thriving and empowered workforce is the cornerstone of a prosperous business that is in it for years to come.

I would love to hear your thoughts in the comments and to know how you think we can all do better for our workforce and find better solutions than "run to fail".