Think about compound interest, the next time you ignore problems at work. Investor Warren Buffett praises the virtues of compound interest with investments. But the principles of accumulation and time can also apply to problems.
These are issues, where you know something isn’t right, but you don’t act on it. Inaction is a choice but one that comes with consequences. Think of a hole in a roof that grows larger over time.
Sometimes action is not possible. But often we try to ignore the problem, hoping it will go away or fix itself. This rarely happens. Ignored problems tend to grow.
Even if you can’t act on the issue, you should acknowledge it and have a plan for when you can. Consider these challenges and how you can address them:
Equipment
Maybe you need a new copier or a better customer relationship management system (CRM). Can you track what is being lost from your current setup?
When you have a problem like a poorly performing copier or a CRM that requires a lot of manual input, it can be easy to accept the status quo. You get used to clearing paper jams or spending five steps on something that should just require one.
If you can track the loss in productivity, it can help you better make your case for improvement. Something isn’t just shown to be bad, it’s shown to be costing the business money.
It’s very possible the people who could approve a change have no idea about the problem you’re facing. Use information to make your case.
People
Are underperforming employees held accountable? Does the fear of firing the person and upsetting him or her create a tolerance of a poor performance?
But like compound interest, the organizational impact of a low performer will grow. Other employees will have to pick up the slack or correct work. Some may start to wonder how hard they should have to work, if mediocrity is embraced by leadership.
An underperforming employee should either be reassigned to a better fit, given an achievable roadmap for improvement, or dismissed.
Doing nothing is like living in a bad marriage, where both partners may be suffering. Consider what things would be like if a more competent employee was in the position.
Training
Has your business fallen behind on knowledge and skills? These things can be improved through training but sometimes a leader doesn’t know where to start. As a result, nothing happens and your team falls further behind the pack.
Often your employees know what they need to improve but won’t volunteer this information unless they’re asked. Talk to your team about what skills they need to perform their jobs at a higher level.
Have them come up with two options, high and low cost solutions. High cost could involve attending a conference or bringing in a trainer. Low cost options could see people being able to have weekly time set aside to review online resources.
The goal is define paths to improvement and have an investment level attached to each one.
The employees take on an active role in self-improvement.
Final Thought
In all of these scenarios, you’re focused on building compound interest on good things, instead of negative issues.
Does your next meeting need something special?
