Vicious Circle or Virtuous Circle?

According to Wikipedia’s entry about vicious circles, they “have feedback loops in which each iteration of the cycle reinforces the first… These cycles will continue in the direction of their momentum until an exogenous factor intervenes and stops the cycle.” I have found that many companies are so preoccupied with putting out fires that they are unable to be proactive which leads to more fires to put out. They do not have the time, budget, or energy to focus on moving toward higher levels performance and profits. Often times it is the company that most needs to focus on strategic planning and development that puts it on the “back burner for now.”

On the contrary, companies with a firm commitment to development tend to find themselves in virtuous circles. By focusing on what is possible instead of the latest crisis, they expand their opportunities exponentially.

When I see a company floundering in a vicious circle like this, I want so much to be the “exogenous factor” that ”intervenes and stops the cycle.” Sadly, there is not usually an openness in such companies to receiving counsel. It is as though the company is unable to see the cycle. It usually takes more drastic “exogenous factors” such as firing a CEO or laying of employees to break the cycle. These actions can cost more than simply taking the time to step back, take a look at what’s happening, get clarity about what needs to happen, and create a deeper plan of attack.