Your company is doing well, making money. It does so in spite of some known, but ignored, issues. No one really feels pain at present, do they? There is no “burning platform.”
|Sometime in the future, you instinctively know, one or more issues will become a noticeable pain. Continuing to ignore an issue no longer works (I call it “taking mental Tylenol”).
Once the “mental Tylenol” effect wears off, people will start to pay attention. It could take a year or more.
Finally, management will take action to recover. They will call it a step to improve performance. But, is it? I don’t think so.
|Customer complaints rise|
|Orders ship later|
|Invoicing errors delay DSO|
|Quality is declining|
|Processes cannot scale|
|Staff attrition rises|
Let’s take a look at this scenario: Today your company is performing at a certain level (profitability, sales volume, net promoter score, etc.).
|Let’s index that and say we are at||100|
|The problem we ignore for a year drags us down 15% to||85|
|Your management team says they can improve by 20% next year, which brings us to||102|
In my books, that’s NOT an improvement, it’s only a recovery (102 v 100). But, what if we decided not to wait, to get started now?
|We’re at the same starting point as above||100|
|We implement the same improvement plan (20%), which takes us to||120|
|And a year later that continuing improvement gets us to an index of||144|
What did waiting cost you?
By doing nothing until things get worse,
- You’ve incurred further declines in performance (85 v 100)
- You’ve got less ROI to address the issue (and the effort and cost to remediate is likely higher)
- You’ve likely hurt your customers more
- You’re managing by reaction instead of by anticipation.
Isn’t that 42 point difference after 2 years attractive? Even half of it?
For more information on how BT Partners Advisory Services can help you act now, please contact me @ LGreen@BTPartners.com.