‘Ostrich syndrome’ pushes ME enterprises into crisis

ALKESH SHARMA / Emirates Business

Organisations in the Middle East should shun ‘ostrich syndrome’ and accept the harsh realities of market to emerge as business leaders in the long-run. Nearly 35 percent of the enterprises, in the Middle East region, suffer irreparable damages as they
fail to anticipate the impeding harms well in time.
“Crisis will never stop, they will keep happening but we cannot turn blind to them through imbibing an ostrich syndrome. This is one of the most dangerous traits that could fetch huge loss to businesses. It involves certain deceptions like ‘this crisis
cannot happen to me’ or ‘it cannot go that bad’ or ‘nobody will ever
notice this’. This approach is really hazardous for any business,”
said Khalid Bahabri, Head
of Operational Excellence, NCB
Capital.
He added, “In fact enterprises should foresee the looming crisis conditions and take appropriate precautionary measures in advance. It’s all about speed and reacting quickly. Foremost action could involve reacting decisively on the online media,” pointed out Bahabri, who is an expert in operational excellence and business continuity.
Industry pundits opine that dealing efficiently with predicaments during their initial stages could save enough capital that will go waste in the
damage-control measures during the later stages.
Oman Yakub, an agile coach, told Emirates Business, “There are many examples in the corporate sector where companies deny or simply refuse to admit something fishy that is otherwise clearly noticeable. In this era of cutting-edge competition, enterprises cannot afford this approach. They cannot behave as if the head of top management is buried in the sand like an ostrich.”
“Data compiled by my firm shows that nearly 20 percent of the start-ups hang their boots within the first two years of operations because of their inability to accept the market reality and to draft strategies to tackle future emergencies,” stated Yakub, who is based in Jeddah and was in Abu
Dhabi recently to attend a forum on business continuity and crisis management.
Experts say that the companies could divide any crisis into three stages — pre-crisis, during-crisis
and post crisis — and find an emphatic solution for the situation,
instead of ignoring and running away from it.