A single point of failure, SPoF, in your business can literally devastate your business overnight yet many business leaders spend little or no time at all protecting their business against these risks!
In 1995, a rogue trader brought down Barings Bank through fraudulent, unauthorized, speculative trading. The bank, which had been established in 1762, had a single point of failure and did not have controls in place to protect itself. It’s SPoF destroyed it!
Similarly, uncontrolled trading of oil futures has crippled more than one oil company in recent years. Other businesses have been bankrupted due to manufacturing shutdowns caused by natural disasters, social uprisings, political unrest, wars, etc.
“The goal, then, is to uncouple fear and failure – to create an environment in which making mistakes doesn’t strike terror into your employees’ hearts.” Ed Catmull
Organizations that value growth and success encourage their employees to innovate, try new things and stretch the boundaries of the business. These organizations embrace failure because they realize without failure an organization cannot grow and reach new levels of success. They also know that if an organization is not growing then it is stagnating . . . and stagnating businesses fail.
My son and a few of his friends started a landscape and lawn care company this summer. They built a website, flyers, posters and brochures. They knocked on doors, distributed flyers and sold their services to as many people as they could. Once they landed enough customers, they went and rented an aerator and power rake and worked their tails off. At the end of the first day they had lost $15! Talk about a disappointing failure!