Weak signals, strong stakes: knowing how to anticipate to avoid the worstBy Jean-François Pinson, Associate Director at Grant Alexander – Executive Interim

Bankruptcies, restructurings, industrial site closures: uncertainty leaves room for concern at the beginning of this year. Let’s be honest: a significant portion of the observed defaults are not related to a sudden and unexpected turnaround in the economy. Many result from choices, or non-choices, of leaders or managers. Errare humanum est.

But how many of these mistakes with painful consequences could have been avoided?

The importance of weak signals
Detecting weak signals is one of the heaviest responsibilities of a business leader. Despite their name, these signals are actually not weak: they are early indicators of worrying trends and problems to come. Certainly, they are often subtle, diffuse, non-quantifiable. But taking them into account can allow anticipating and preventing significant difficulties and even, for some, fatal ones.

Weak signals should neither be underestimated nor hidden. While they rarely appear alone, their crystallization represents a major risk. If not addressed, they end up multiplying within the company, interconnecting, and leading to the worst. However, as such, they reveal no failure, and often no serious fault. They should be considered calmly but with total lucidity. They constitute an opportunity for change. In other words, one can and must consider a weak signal as a chance to adjust, gain in productivity and profitability, benefit from a new competitive advantage … in short, to do differently and better. Not only to avoid disaster and ensure the continuity of the organization, but also to consolidate the company’s growth and reach a new stage in its development.

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Read the full article on the Cadre & Dirigeant Magazine website.