The Danger of Inaction: 5 Characteristics of a Business on the Brink of Disaster

Change is rarely easy and many businesses know well how difficult and expensive cultural shifts and innovation can be. But while change may be costly and hard, it is important for businesses to reflect on their approach and culture and ask, “Can we afford to do nothing and maintain the status quo?”

The “do nothing” approach and status quo can prevent an organization from seeing the bigger picture and can even negatively impact key functions and processes. With these considerations in mind, there are some common, toxic characteristics typical of the “do nothing” approach that you should be aware of and strive to avoid within your organization. In this post, we’ll explore five toxic attributes that can cost your business time, money and focus.

1. Prioritizing Cost Cutting over Investing in Results

Fiscal responsibility is a key attribute of any healthy business. But uncontrolled cost cutting and reductions at the expense of performance and results will negatively impact the company. At a certain point, cost cutting can actually stifle innovation and creativity among employees as they become reluctant to offer new ideas and approaches that may incur added costs and require more resources.

2. Unrealistic Expectations and Organizational Fatigue

When an employer demands too much of his or her employees, it doesn’t take long for the team to become disenfranchised, bitter and resentful. Over-worked employees are often stretched too thin due to inadequate staffing, which can be a result of the aforementioned overly-aggressive cost cutting efforts. Eliminating staff and shifting their workload to employees who are already at capacity will negatively impact employee satisfaction, productivity and retention.

3. Always Looking for a Scapegoat

Any organization in which leaders are regularly looking for a scapegoat, or someone to blame for issues, certainly cannot afford to “do nothing” as this is a telltale sign of an issue. Unfortunately, the act of designating a scapegoat in times of turmoil is not uncommon, as it provides an quick solution and offers the false assurance that the root cause of the problem has been addressed.

The hunt for a scapegoat often occurs in connection with financial analysis, such as loss reporting, or following an accident or incident. Beyond the obvious negative cultural impacts of an environment in which employees fear they will be blamed for issues within the company, the practice of passing blame and identifying scapegoats can also result in severe risk aversion, which can be detrimental to a company.

While scapegoat thinking may offer a sense of resolution, it is sure to be fleeting as pinning problems on a scapegoat is often masking larger, more systemic issues that will inevitably resurface and could even compound over time.

4. Blissful Ignorance

In some companies, the primary barrier to progress is not a “do nothing” approach, but rather management that is ignorant to the fact that opportunities for improvement exist and that the organization could be performing better and functioning more efficiently.

In these instances, an intervention is needed. These difficult conversations are typically either met with receptivity and change or continued indifference or anger.

5. Unwillingness to Accept Risk

A severely risk-averse environment can be lethal to innovation and progress, as employees are reluctant to ask questions, think outside the box or pursue any initiatives that carry some degree of risk, and naturally, the possibility of failure. In these environments, the status quo is typically the law of the land.

The bottom line

While bad habits may be hard to break, they are not impossible to break and it’s never too late to start working on bettering your organizational processes and culture. As you assess your company, this list of characteristics offers a great starting point and reference in evaluating both your processes and those of your managers.

Top-performing organizations are continually focused on process improvement and innovation. If you’ve been content with the way your facility is operating and feel like things are just “humming along,” it’s possible you’ve been complacent and overlooking some opportunities to optimize performance and create a culture that both you and your team can be proud of. So, take a step back and consider how your organization can strive to be better.

‍