May 3, 2009

The Risks of Doing Nothing

The risk that companies face often come, not from activities originating from decisions that the company made, but very, very much often, from decisions made by others. 

They are out to get you.  Every one of of your competitors is out to get your customers.  Every single day they are plotting to change the world so it becomes more favourable to them (and less favourable to you, but that is a secondary purpose).

Failing to monitor, perceive, and anticipate the changes exposes your company to risks. Doing nothing against the changes means your risks are increasing.

For a simplistic example, imagine a company that did not adjust its salaries to keep pace with industry salaries. If its competitors pay much better, key people will tend to move to the competitors.  If its competitors pay less, they would be in a better position to offer better value to customers, exposing your company to a loss of customers.

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