The cost of saying nothing - the invisible business risk

Making decisions can be daunting, especially in times of uncertainty. But what many companies overlook - and what no key performance indicators in annual reports capture - is the cost of making no decisions at all.

When the economy shakes, business leaders tend to pull the handbrake. Investments are postponed, recruitment is paused and strategic initiatives are shelved. The reasoning is simple: we wait until we know more. The problem? In a world that never stands still, inaction can prove to be one of the most costly strategies of all.

The same is true when it comes to building thought leadership. History shows that companies that continue to invest in marketing and communications during recessions often emerge as winners when the market turns around. Providing new insights and perspectives that help customers understand how they should think and act is even more important in bad times. 

Those who choose to wait and be silent risk losing market share, falling behind in innovation and losing relevance. But as there is no line in the profit and loss account for the ‘cost of doing or saying nothing’, this is a risk that is often overlooked.

It is easy to avoid risks in difficult times. But the biggest risks are often those that don't show up in the financial statements. Decisiveness is a competitive advantage, and in a world fueled by rapid technology development and AI, it becomes even more important.

So the next time someone suggests ‘we wait and see’, ask the question: What is the cost to us of doing nothing?

Johan Wetterqvist, Founding Partner of Spotlight Communications (www.spotlightcom.se)