The cost of denial

As a result of ignoring obvious problems the management and shareholders of troubled organisations subsequently end up asking “why did that go wrong?”

It is simple, a large number of companies fail to address problem issues early enough to avoid an oncoming crisis.

The signs of a troubled business are all too apparent – these include lack of controls, lack of strategic vision, a demotivated workforce and obsolete or valueless stocks etc.

Instead of grasping these nettles, the preferred option in many instances is to engage in a totally pointless exercise such as a rebranding exercise or the launch of another product range destined to fail for the above reasons.

At the time it seems a rather painless way to deal with problem issues but for the most part it only buys a limited reprieve before the harsh realities come into play.