is the most
– by Hans Lee
Being the first officer of a plane experiencing dual engine failure is always going to be daunting and nerving experience. It must be worse when you know that you are still a subordinate to the captains orders. Knowing that the initial impact will determine whether you survive or not makes critical every effort to ease the severity of the impact.
I pose that scenario to begin my reflection on the science of an undoing of a company. I have often prayed to be exposed to failure at a grand scale and I think I am about to see it go down like the twin towers. After all, the best lessons are the ones learned through experience. I hope that the insight gained through this experience will give me exceptional foresight in the management of my future company.
So where do I begin?
Firstly, always remember that a garden must bear fruits before you can start eating from it, but if you want more from it, you must be wiling to take some of that product to the market to sell it for money. That money can either be reinvested into growing the garden or exploring other money growth opportunities. The K50 earned from the market sales should be reinvested for the future, sacrificing today’s rewards.
The basic principle is that, before something can look after you, you must look after it.
Asset rich – Cash poor brings creditors knocking at the door.
Whether you are working for yourself or working for someone else, remember that operations get harder when there is limited cash moving through the veins of the company. A company can feel and look like it is rich i.e. have a lot of property, plant and equipment, but if they aren’t making money, or the company doesn’t have cash reserves, they are in a very risky position. Imagine what would happen if you only had K5,000.00 in the operating account and the credit accounts due (your debtors) were chasing after K10,000.00 payment immediately.
Lack of vision is lack of direction
It is easy to follow blindly especially when the leader thinks what they are doing is for the best. They risk everything including killing the company to carry out a flawed plan.
Be mindful of someone you are following who has not thought out and explained a plan properly. When they cannot see where they are going, they will always get lost. When you join organisations, ask them what their plans are for the short, medium and long term, even if you do not know whether you will be there for the long haul or not, it is encouraged that you find out where the company is going and whether you could fit the carrying out of that vision.
Never get too comfortable, all can be taken away
One thing I am terrified about is being comfortable, or the though of it. I have always believed, and will always believe, that comfort breeds complacency. For me it is a fate that precedes death. Think of all the people who are forced to retire, if they chose to kick back and relax, it is the beginning of their demise to the box, but for those who remain active, for them are rewards of a life fulfilled.
Comfort can often blind us to the temporary nature of life’s pleasures like friendships and social activities but when you realise that you are not entitled to those things anyway, it makes you work harder. It can all be taken away at the shortcoming in cash flows and court notices.
Know when you are in trouble and let go
Very few people are able to admit when they are wrong or are about to fail. The saying too big to fail doesn’t apply equally across the board. Sometimes we need to stop and reassess if we are too comfortable or whether the people around us are changing or not changing.
Too few too know how to break out of the mould they have built for themselves. Knowing when you are wrong and asking for help from those around you who are smarter then you is the first step in fixing a problem.
That is about from me so far.