Category Archives: Improvement

This Is How to Respond to These 6 Signs of Corporate Inertia

This Is How to Respond to These 6 Signs of Corporate Inertia
Facebooktwitterpinterest

One of the biggest issues that modern business leaders face is inertia. In the context of business, this means that companies resist change unless someone directly pushes for modernization. More so than ever before, inertia can cause a formerly successful company to crumple.

Modern markets change very quickly. As a result, companies need to adapt to new business environments and shifting customer expectations if they want to stay relevant. Otherwise, another organization will swoop in to fill the hole and steal the market.

Business leaders need to learn how to recognize inertia so that they can be the outside force necessary to effect change. Some of these signs include:

1. Satisfaction with the status quo.

Companies can fall into an inertia trap when they become too satisfied with the status quo. When everything seems to be going right, organizations can take time to celebrate, but then the task transitions into looking ahead. This is the time to invest in innovative ideas and industry-redefining ideas.

While not all of these ideas will pan out, they put companies in a strategic position to respond to sudden changes in the market and help them avoid being blindsided. Market demand will certainly change. Companies need to have enough side projects going on to pivot.

A great example of satisfaction with the status quo is Blockbuster. The company continued to open physical locations instead of responding to game-changing ideas like Redbox and Netflix.

business leader

2. Paralysis of market analysis.

Many business leaders recognize that there is such a thing as strategic inertia. Sometimes, it makes sense to avoid change for a period of time while preparing for the future. However, this break must be brief.

Too often, companies become paralyzed by their investment in market analysis. It is pertinent to research and engage in discussion before moving forward with new ideas. However, it is very easy to invest too much time in this process.

Overthinking can prove just as devastating for a company as underthinking. Waiting too long to make a move means wasting both time and money, not to mention the opportunity to bring something truly innovative to the market. Excellent business leaders know when to move past analysis to the action phase.

3. Adherence to tradition.

Tradition does have a certain role to play in companies. However, business leaders need to think critically whenever they hear that something is being done in a certain way only because that is how it has always been done. Tradition means respecting and honoring the past, not adhering to it blindly.

Leaders need to identify when traditions are a detriment and push for change to make processes more efficient and more effective. The heart of today’s most successful companies is innovation, not tradition. Business leaders who embrace tradition blindly put their organizations at serious risk.

4. Lack of communication.

The culture of many organizations prevents individuals from speaking up when they have ideas or questions about how things are being done. This silence is actually a sign of inertia. Employees are the people who ultimately push companies toward innovation.

Companies benefit when many different perspectives come forward. No one single person will have the ultimate answer to a question. The ability to crowdsource potential solutions is what makes companies so strong.

Business leaders need to keep the doors of communication open with employees and invite feedback and suggestions from anyone who has something of value to contribute. While not all comments will lead to change, individuals may be surprised at the source of the most innovative ideas.

stress

5. Organizational tunnel vision.

Most business leaders will recognize that tunnel vision leads to inertia. Too often, companies embrace an idea of what their employees or target customers look like and become blinded to other possibilities. When this happens, diversity in the workplace becomes stifled and important opportunities for business expansion will be missed.

Leaders need to keep an open mind, especially when it comes to recruiting and sales. Often, hiring people with new perspectives leads to new market opportunities that were never before considered, as well as products that appeal to a larger number of people. Whenever it becomes apparent that an organization has tunnel vision, leaders need to ask how they can shake things up and bring in new viewpoints.

6. Investing in failing projects.

The best business leaders know when to cut their losses. Too often, companies continue to throw money at a problem hoping to save it long after it has passed the point of salvage. Letting go of a project that has consumed a lot of resources can be difficult. However, investing more into it will only make the eventual failure that much more damaging.

Companies need to keep looking at the long term instead of focusing only on the present. When leaders do this, they will more easily see when a project needs to be abandoned instead of getting wrapped up in efforts to save it. Continuing to put money into failing projects will jeopardize the trust between leaders, employees, and investors. This could put the entire company at risk.

6 Strategies for Dealing with Victim Mentalities in Employees

6 Strategies for Dealing with Victim Mentalities in Employees

Among the most toxic employees that business leaders can encounter are those with a victim mentality. For the most part, you can quickly identify these individuals, as they generally blame other people for their own failures and shortcomings rather than accept responsibility. You may find that, as a leader, you are often the target of… Continue Reading

6 Qualities of Compassionate Leaders

6 Qualities of Compassionate Leaders

The concepts of empathy and compassion have gained a lot of traction in the business world in recent years. Many people have begun to acknowledge why these traits are important for effective leadership, yet they still do not frequently make the lists of the most important qualities that business leaders need to develop. However, some… Continue Reading

5 Best Tips to Help Business Leaders Effectively Address Their Mistakes

5 Best Tips to Help Business Leaders Effectively Address Their Mistakes

Everyone makes mistakes, even the best business leaders—but what separates the bad from the good in terms of leadership is how one deals with these mistakes. Though we know failure plays a role in the process of learning, this knowledge does not make it any easier to handle a misstep effectively and with dignity. Admitting… Continue Reading

This Is How Relaxation Can Help You to Become a Better Business Leader

This Is How Relaxation Can Help You to Become a Better Business Leader

Business leaders often don’t fit relaxation into their schedules as a means of driving productivity. Unfortunately, a failure to rest can lead to reduced productivity. A lack of rest, researchers have found, significantly impacts performance. On the other hand, when people take time out for themselves, they return to the task at hand refreshed and… Continue Reading

6 of the Best Tips for People Transitioning into a Business Leadership Role

6 of the Best Tips for People Transitioning into a Business Leadership Role

Assuming a leadership position for the first time often proves both exciting and nerve-wracking.  Because undertaking new responsibilities involves a lot of hard work, leaders must develop a unique toolset while also working diligently to forge relationships with employees in the first few weeks after starting. To succeed as a leader, you need to secure… Continue Reading

6 of the Worst and Most Toxic Traits that Business Leaders Can Have

6 of the Worst and Most Toxic Traits that Business Leaders Can Have

Poor leadership comes with serious ramifications for a business. The slumps in morale that result from poor leadership can curb productivity and ultimately increase turnover, which wastes time and resources. Furthermore, poor leadership can create a reputation in the business world that makes it difficult to recruit talented employees. While it’s important to understand which… Continue Reading

Should Business Leaders Focus on Results Or People?

Should Business Leaders Focus on Results Or People?

A lot of debate surrounding what constitutes a good business leader continues to exist, and one of the issues that has caused the most heated conversations is whether executives should focus primarily on their employees or on results. However, simply asking this question assumes that leaders need to focus on one or the other rather… Continue Reading