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4 Avoidable Mistakes That Cost Businesses Time And Money

In our day and age, it pays to eliminate organizational inefficiencies. What with foreign competition, and a huge market of global consumers, a successful business knows how to innovate in order to succeed. Following are four key mistakes that the best companies avoid.

1. No Courage

Warren Buffett once observed, Be fearful when others are greedy and greedy when others are fearful.” Something that Google, Apple, Microsoft, Berkshire Hathaway and Tesla Motors all have in common is each of these companies was started by a CEO who dared to be different. The company that succeeds has a goal that many think is impossible. When you set a tough goal, your company becomes greater than the competition.

Employees are inspired each day when they come to work, “Let’s make the first flying saucer,” rather than tired and bored. A good CEO challenges his employees, and encourages them to speak up when they have good ideas. Bad CEO’s are cowards who control with a rod of fear, setting pathetic and meaningless targets that are entirely based on money (usually for their own personal benefit package).

2. No Synergism (Working Together)

This word was expounded on by Stephen Covey in his very popular book the 7 Habits of Highly Effective People. Covey emphasizes, “Live out of your imagination, not your history.” Often times, a company sets goals based on the past, and it misses out on new opportunities. Having the humility to receive input from every member of the organization often leads to advances and successes that are otherwise not possible.

3. No Pluralism

Although we wish it was not true, racism and cultural bias is still a huge issue for most US companies. During a test conducted by the National Bureau of Economic Research, social scientists found that job seeking phone call messages with an African American sounding name had to be sent in 15 times before getting a callback from an employer. A white sounding name only had to do 10 times to get an employment callback. Having a better resume did not help black people nearly as much as it did white people. This racism that is still prevalent in the United States needs to be ended. When employers discriminate based on their own personal opinions, they are locking out quality talent from benefiting their company progress.

4. No Organizational Psychology

Ignorance of the science of psychology causes a lot of headache for HR managers. Promotion is often based on time with the company, and not the suitability of the person for a particular position. If the accountant is placed in the role of CEO, he will lack the vision and courage to carry the company forward. Careful study of the human personality types can seriously help put people where they are cognitively best suited.

Having an updated security awareness training guide should also be a part of your HR program for employees. Make sure that you and your organization guard company secrets from competitors. Open information exchange between trusted employees is good, but if you let your trade secrets leak, you may lose potential market advantages.

As an overview, the top companies in the industry are brave, their employees work together, they are culturally diverse, and they implement organizational psychology methods. If you and your company do these things, you will see a large market impact. Competitive advantages are always helpful, and this tips should put you on top.

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