“Good judgement is the result of experience and experience the result of bad judgement.” ― Mark Twain
“It’s good to learn from your mistakes. It’s better to learn from other people’s mistakes.” — Warren Buffett
- Allowing the boom to create a false sense of security, masking the underlying problems.
- Not building resilience – the business is not designed to withstand bad times.
- Not utilising the boom time to prepare. The bust is too late.
- Not having an early warning system.
- Not having multiple levers to pull beyond cost cutting.
1. Allowing the boom to create a false sense of security, masking the underlying problems
2. Not building resilience – not designing the company to withstand bad times
- We tend to hire anyone with the right qualifications because we have vacancies to fill, paying little attention to cultural fit. There’s little time or considerations given to onboarding and training. This doesn’t do much for our desired company culture!
- Business processes get overly complex, less effective and definitely less efficient.
- We have money we can invest into technology and since software has become all about SAAS, we jump onto yet another new platform and soon we’re almost inextricably committed for the long term.
3. Not having an early warning system
4. Not utilising the boom time to prepare. The bust is too late
5. Not having multiple levers to pull beyond cost cutting
- Allow the boom to create a false sense of security, masking underlying problems.
- Build resilience and design the company to withstand bad times.
- Utilise the boom time to prepare for the inevitable bust.
- Implement an early warning system to anticipate and respond to downturns.
- Invest in holistic business improvements during prosperous times.
- Avoid relying solely on cost-cutting measures and invest in more effective options.
- Focus on leadership, culture, processes, and technologies in line with your mission and strategic intent.
- Foster a deep understanding of the operation and utilise constraint analysis and value driver/cost driver tree structure to drive laser-focused actions.