If you’re promoting, the multiplier effect is considered to be your friend. If you’re defending, the multiplier effect tends to be your enemy. And in problem solving, the multiplier effect could be your enemy, or your friend.
As I speak with individuals and present to groups about the numerous challenges of encountering a silent problem in their organizations, the multiplier effect is integral to the discussion. In essence, a $50,000 problem could easily be a $100,000 or a $1,000,000 problem if one is not careful. Such is one of the greastest risks with Silent Problems (problems that are avoided, neglected or going unnoticed). Because by the time one gets around to solving the problem, the multiplier effect is already in play. For instance:
- The loss of a key employee escalates to 5-employees.
- A customer that leaves for cause, quickly escalates to the loss of 10 customers.
- A key initiative announces a delay at the last minute, which in turn creates a cascading effect across the organization.
- A problem that was avoided has a financial impact much greater than originally anticipated.
- Worker productivity declines in one department due to a silent problem in place, and then spreads across the organization.
It is the role of leadership to set the pace, direction and focus of the organization. However when a silent problem is present, unintended consequences tend to emerge. Initially these may be a small distraction, however over time, they can become significant and real - at times mulitplying like rabbits.
Bottom Line: The multiplier effect and silent problems have a kindred relationship, which is almost always negative. It’s important to take into consideration the potential of a problem when allocating resources and building the solution to solving it.
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