These are the steps that too many companies follow. Whether the company is large like AIG and staff becomes the buffer or the company is small and the approach is simple avoidance the results are the same.
Isolation, like denial, is a warm and fuzzy place. Unlike denial isolation is not the first step towards better thoughts and ideas. It can be a permanent stop. Worst of all the folks who become isolated are often jeered behind their backs and sometimes on the front page of The New York Times. Favorability ratings of Condolleezza Rice dropped after she was discovered buying shoes in Manhattan while people in New Orleans were standing on the roofs of their houses waving at helicopters during Hurricane Katrina. Napoleon Bonaparte isolated himself within his army and probably never realized that Waterloo would become synonymous for a final crushing defeat. Unabomber Ted Kaczynski was completely alone in his Montana cabin where he plotted against the government.
Isolation leads to arrogance. Arrogance is the outward manifestation of overblown pride and excessive self-worth. It is another of those traits that is usually accepted only by those who have to. A perfect example is Leona Helmsley who required her household staff to line up outside in full uniform to welcome her back regardless of the time of day. Arrogance is flying your private jets for a day to Washington at a cost greater than the annual poverty rate of a family of four and then asking for a bailout of failed management policies. Arrogance is knowing your product offering is so necessary that you won't spend the money to better train the customer service staff because who cares?
Arrogance breeds stupidity. Stupidity denotes an incapability or unwillingness to properly consider relevant information. This is the best definition of stupidity ever for businesses. Relevant information must always include financial statements. Refusing to look at them doesn't make them less intimidating. It must always include analyzing the value of the product or offering on a regular basis. There are people who are LP connoisseurs who only use turntables to listen to music. Not many but maybe it's you. Just because you know everyone in America dedicated to record players is it worth turning your hobby into a business? If you refused to associate with people who listened to CD players and ipods and then felt puffed up over your connections you might just be dumb enough. Finally, relevant information must always include the economic environment. If you use receivables as a back up to your credit line then you need to make sure your customers have done what they need to do to make sales and order more. Or, like one of Lear's plants, you'll have to close for an entire month instead of the normal two period over the holidays and pray to the might automotive gods that it's enough.
No business owner wakes up in the morning and says "I think I'll lead my company to failure today." Unfortunately stupidity generally has nowhere to go but failure. It may take three months or three years or three decades. It can happen so quickly that you never saw it coming or it can feel like the slow march of death. Either way it's not what you planned even if you became isolated, arrogant and stupid. Your customers may mourn your business failure. They may be furious because they tried to tell you but you wouldn't listen. They may be glad as the new owner or competitor learns from your mistakes and offers a much better service or product.
Pay attention to your surroundings. Make sure they include naysayers as well as supporters. You get to make all the decisions anyway. You'll want to hear every point of view because after isolation the chances of failure become exponentially larger.
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