Losses that nobody talks about
Clarity in communication is crucial for any organisation, as a concrete example illustrates:
A long-planned meeting, a train journey organised and the necessary preparations made by one party. But the evening before the meeting, the following email arrives: “I’m too wiped out today to make a good preparation for tomorrow. I would actually like to ask you to postpone. Should we still meet tomorrow or would postponing be okay?” Although the option “meet anyway” was selected, the cancellation came 20 minutes before the start of the business trip with the statement “I anyway tried to cancel yesterday in a friendly manner.”
This type of communication and the shifting of responsibility to others or external factors cost time, money and nerves. Indecision is the modern form of freeze in stressful situations. Even if the reason for this is not malignant, but in this case results from a need for harmony, a lack of courage or overwork, it is extremely risky to dismiss such incidents as minor matters.
Why ignorance costs companies dearly
Such incidents add up in organisations. Friction losses in communication and collaboration cost organisations a lot of time, money and nerves. Studies show that this costs up to 19% of company costs and 50% of managers’ time, as well as reduces employee engagement levels (see sources).
In many companies you often hear “I don’t have a problem”, but at the same time there are complaints and accusations about disagreements between employees. In addition, the risk of frictional losses remains hidden in many organisations, like an iceberg beneath the surface. Because costs that are not recorded seem invisible. However, blind spots in the area of human capital and corporate culture weaken organisational resilience and loading capacity. Unnecessary and exhausting continuous loops lead to delays and additional costs in projects. Which organisation can afford such inefficiencies?
Doing nothing means economic damage
What happens in companies that look the other way? A lack of resilience in the workforce, deficits in factual communication and inefficiencies in interaction and collaboration result in costs: loss of time, project delays, frustration, declining employee engagement, increased sickness rates, staff turnover and stress.
Following the motto:
Looking ahead brings managers and companies forward
Management and executives who take responsibility and take sand in the gears seriously reap numerous benefits: The team experiences relief, goals are achieved more efficiently, job satisfaction increases and the capacity for creativity & innovation is enhanced. However, you also need the courage to face up to the issue.
The steps to solving complex problems
Complex problems require more than just superficial solutions. Although the challenges are complex and involve people and framework conditions, it is worth taking the following steps:
- Confront the problem and name it clearly
- Analyse and uncover blind spots
- Developing starting points for success
- Actively tackle the challenges and promote the emotional strength of the workforce
- Enjoy resilience, collaboration and the associated competitive advantages
Efficient support for progress with UP’N’CHANGE
The UP’N’CHANGE Impact-Enabler combines personal support with digital evaluation to solve these problems. With the expertise of psychology, business and systemics, the management team receives facts about what is happening in the company.
The evaluation creates clarity for the workforce as to why certain situations occur and how specific behaviour can be changed in order to work more effectively. The use of tried-and-tested tools and the presentation of hard facts to management strengthens the organisation’s resilience and paves the way for greater success.
What to wait for? Tackle the iceberg of hidden costs!
P.S.: Are there any topics that are currently bothering the management and that you would like us to shed light on with our expertise? Please send us a short message.
Author’s profile
Dr. Gabriele Lang is Managing Director of UP’N’CHANGE GmbH, a solution provider for digital learning and development products. The founder of one of Austria’s most influential consulting start-ups (EU Startup News, 2024), develops digital and hybrid solutions with her team to support people and organisations in their development and make them fit for the future. The pioneer, with a doctorate in psychology sees digital formats as a sustainable way to strengthen social and emotional skills and thus increase resilience, collaboration and creativity.
