Friday, 6 December 2013

Failing to act, acting to fail


 
Very few companies implode like a supernova. In the vast majority of cases the distress signals are visible for some time before the flame out.

There are many tell-tale signs such as consistent abuse of payment terms, erratic ordering patterns and lack of response to emails or calls. These are early warning signals.

When faced with mounting problems it is highly likely that the solutions will of necessity be painful. However, radical and decisive surgery is often the only way to ensure a patient’s survival.

Unfortunately many companies adopt the Mr Micawber attitude that “something will turn up”.

In the overwhelming majority of such cases the only people likely to turn up are the administrators/liquidators.

Be it merely inertia or fear of addressing the problem issues the outcome will inevitably remain the same.

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