Murphy’s Law states that “Anything that can go wrong will go wrong.” What this law did not say is that if we make a wrong start not only things will go wrong but their harm will produce a butterfly effect. One example is making the wrong decisions at the wrong time such as cost reduction.
Cost Reduction
Many companies decide to cut costs to increase their profits and enhance efficiency. This is the immediate effect and the first-cost-minded thinking. To make a wise decision balancing immediate effects versus medium-term effects is essential.
Some harms may not appear immediately but suddenly start to compound. Laying off is one way of reducing costs. It does but what happens afterward? The remaining employees are filled with anxiety and believe they are the target of the next layoffs. Anxiety of employees leads to a decrease in their productivity. Decreased productivity leads to compiling more work on employees. Loading employees with more work leads to stressing them. Stressed employees burn out and their productivity goes down so the quality of products may not be of the required quality. Lower quality and deferred delivery of products anger customers who may seek another supplier.
Legal issues initiate- more piling of costs. Churning customers causes losses that may offset the initial cost savings. So, profits go down and again back to more laying offs
You noticed the feedback effect where the cause became the effect and in turn, the effect became the cause, and so on.
I shared recently a post on “What to Do with Low Performers?” The story is about a boy who was second among three brothers. He felt sandwiched between them and that gave him the impetus to try to be first to draw attention.
My friend Dennis Pitocco wrote a comment in which you can easily see how a benefit can lead to a greater one and so on. I reproduce the comment as it is to keep its depth and integrity.
“Excellent insights here, my friend Ali Anani, PhD Highlighting an employee’s strengths and areas of expertise, rather than focusing solely on weaknesses, can lead to numerous benefits in the workplace. This approach tends to increase motivation and engagement, boost job satisfaction and morale, and improve team dynamics as each member’s unique talents are recognized. It also allows for more efficient task allocation based on individual strengths and can create opportunities for mentoring or leadership roles in areas of excellence. While addressing weaknesses remains important for personal and professional growth, a strengths-based approach often yields better overall results and fosters a more positive work environment. Managers can still provide constructive feedback on areas for improvement, but within a context that primarily emphasizes and leverages the employee’s strengths, ultimately leading to a more productive and harmonious workplace.”
Start with the right step to reach your goal.
