Most business fads do have at least some inherent value — that's why so many organizations adopt them. But as we saw last time, their inherent value can degrade as the fad itself gathers adopters. In this part of our exploration, we turn our attention to the hidden costs associated with adopting ideas or methods that have acquired — or that eventually do acquire — fad status.
- Costs can be internal
- When estimating the costs of adopting an idea or method, we tend to focus on cash outlays, but many costs of adoption can be internal. Costs can appear as lost production, lost sales, compromised quality, confusion, political strife, degraded morale, employee cynicism, and much more, most of it difficult to measure. Examples of the sources of these losses include time spent training and learning, employees recognizing the fad potential of the new method, and disruption of interpersonal relationships.
- Since adopting a new idea or method can be expensive in both measurable and nonmeasurable costs, be very certain that it isn't a fad. Fads usually just aren't worth adopting.
- Costs can lag adoption
- Many of the costs of adopting fads, espSome fads are stickyecially the nonmeasurable costs, appear not in advance of or during the adoption effort, but much later. For instance, companies that downsized aggressively in the 1990s lost access to many of their experienced employees and much of their organizational memory, from both the downsizing and the voluntary turnover it inevitably stimulates.
- Adopting a fad can leave a lasting legacy of recurring cost that can hobble the organization for years.
- Investments in fads can be volatile
- The investments we make when adopting fads are different in character from investments we make when buying equipment, or creating new products, or outfitting new space. Some investments in fads are volatile because we have little ability to protect them.
- Fads that involve personal training are more likely than most to carry with them volatile costs. For instance, when we purchase a computer, we have the ability to keep it in our possession. But when we train an employee to use the Myers-Briggs model, and spend real money to determine that employee's Myers-Briggs type, that investment evaporates when the employee leaves the company.
- Some fads are sticky
- One of the defining features of fads is that they eventually pass on. After adopting a fad, we adopt something else, undoing the work we did when we adopted it. But some fads, once adopted, are very difficult to leave behind. They stick.
- Methods and ideas that require changes to policies and procedures are often stickiest, because changing policies and procedures is difficult by design. Especially sticky are fads involving human resources procedures. When adopting them we rarely consider the costs of letting go.
Is your organization embroiled in Change? Are you managing a change effort that faces rampant cynicism, passive non-cooperation, or maybe even outright revolt? Read 101 Tips for Managing Change to learn how to survive, how to plan and how to execute change efforts to inspire real, passionate support. Order Now!
Your comments are welcome
Would you like to see your comments posted here? rbrendPtoGuFOkTSMQOzxner@ChacEgGqaylUnkmwIkkwoCanyon.comSend me your comments by email, or by Web form.About Point Lookout
Thank you for reading this article. I hope you enjoyed it and found it useful, and that you'll consider recommending it to a friend.
This article in its entirety was written by a human being. No machine intelligence was involved in any way.
Point Lookout is a free weekly email newsletter. Browse the archive of past issues. Subscribe for free.
Support Point Lookout by joining the Friends of Point Lookout, as an individual or as an organization.
Do you face a complex interpersonal situation? Send it in, anonymously if you like, and I'll give you my two cents.
Related articles
More articles on Personal, Team, and Organizational Effectiveness:
- Time Management in a Hurry
- Many of us own books on time management. Here are five tips on time management for those of us who don't
have time to read the time management books we've already bought.
- Working Journals
- Keeping a journal about your work can change how you work. You can record why you did what you did,
and why you didn't do what you didn't. You can record what you saw and what you only thought you saw.
And when you read the older entries, you can see patterns you might never have noticed any other way.
- Using the Parking Lot
- In meetings, keeping a list we call the "parking lot" is a fairly standard practice. As the
discussion unfolds, we "park" there any items that arise that aren't on the agenda, but which
we believe could be important someday soon. Here are some tips for making your parking lot process more
effective.
- Finding Work in Tough Times: Strategy
- If you're out of work and discouraged — or getting there — you're in great company.
Better than ever before. Getting back to work starts with getting to work on finding work. Here's a
collection of strategies for the job of finding work.
- Holding Back: II
- Members of high-performing teams rarely hold back effort. But truly high performance is rare in teams.
Here is Part II of our exploration of mechanisms that account for team members' holding back effort
they could contribute.
See also Personal, Team, and Organizational Effectiveness and Workplace Politics for more related articles.
Forthcoming issues of Point Lookout
- Coming May 15: Should I Write or Should I Call?
- After we recognize the need to contact a colleague or colleagues to work out a way to move forward, we next must decide how to make contact. Phone? Videoconference? Text message? There are some simple criteria that can help with such decisions. Available here and by RSS on May 15.
- And on May 22: Rescheduling Collaborative Work
- Rescheduling is what we do when the schedule we have now is so desperately unachievable that we must let go of it because when we look at it we can no longer decide whether to laugh or cry. The fear is that the new schedule might come to the same end. Available here and by RSS on May 22.
Coaching services
I offer email and telephone coaching at both corporate and individual rates. Contact Rick for details at rbrendPtoGuFOkTSMQOzxner@ChacEgGqaylUnkmwIkkwoCanyon.com or (650) 787-6475, or toll-free in the continental US at (866) 378-5470.
Get the ebook!
Past issues of Point Lookout are available in six ebooks:
- Get 2001-2 in Geese Don't Land on Twigs (PDF, )
- Get 2003-4 in Why Dogs Wag (PDF, )
- Get 2005-6 in Loopy Things We Do (PDF, )
- Get 2007-8 in Things We Believe That Maybe Aren't So True (PDF, )
- Get 2009-10 in The Questions Not Asked (PDF, )
- Get all of the first twelve years (2001-2012) in The Collected Issues of Point Lookout (PDF, )
Are you a writer, editor or publisher on deadline? Are you looking for an article that will get people talking and get compliments flying your way? You can have 500-1000 words in your inbox in one hour. License any article from this Web site. More info
Follow Rick
Recommend this issue to a friend
Send an email message to a friend
rbrendPtoGuFOkTSMQOzxner@ChacEgGqaylUnkmwIkkwoCanyon.comSend a message to Rick
A Tip A Day feed
Point Lookout weekly feed