The luxury ocean liner Titanic was thought to be unsinkable. In a time of hubris, where the belief that nature could be conquered and anything was possible, the Titanic went to the bottom of the North Atlantic ocean on her fabled maiden voyage.
When a business experiences success in the marketplace, often that same sense of invincibility sets into the thinking of management. One victory in the industry, followed quickly by another, should be a warning sign that over confidence might overtake better judgement. Often, entrepreneurs and executive managers alike will begin to believe in their own powers of accomplishment. Listening to other voices of reason disappears. Instead the words of syncophants and cronies are all that reaches the decision makers' ears.
On RMS Titanic, Captain Smith ignored warnings of icebergs ahead. Overconfident in his own abilities, and the alleged supreme engineering of the ship, the Captain and bridge officers sailed straight into impending danger. As a cost cutting measure, Titanic owner Bruce Ismay of the White Star Line had fitted the ship with too few lifeboats for the amount of passengers. He too was certain that the liner could not meet a watery end. That moment arrived at 2:20 am April 15, 1912. The result was the loss of over one thousand lives.
Similar decisions are made in many overconfident businesses today. Instead of keeping an eye on business and economic icebergs, the decision makers sail straight toward them. When the company faces the inevitable rough waters as a result, and like Captain Smith, they often don't know what happened. Everything was going so well.
It's important for any business owner or manager to keep a sharp lookout for potential business problems. They may be cashflow related, staffing and personnel problems, sales and marketing related, or the result of some natural or manmade disaster. Careful planning for all possibilities, both beneficial or dangerous, is essential. When potentially damaging news is heard, it should be heeded and not ignored.
Don't go the way of The RMS Titanic because you failed to listen to warnings of the icebergs ahead.
Your company, its employees, and your investors deserve to stay afloat.
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