Ripple Of Loss

When an incident of loss occur many people just look at the incident itself and do not consider that a loss incident is like dropping a stone in a pond.

Like the stone, the loss incident will cause a ripple through an organisation that if not stopped will escalate the loss. If the full effects of the ripple are not identified and included in the overall evaluation it is likely that the corrective actions based on the incident itself will fail.

One of the most common incidents of loss occurs at meetings where a comment creates a distraction that stops the focus on the meetings topic. Loss is immediately generated as the participants are no longer working.

If this loss is not corrected immediately a ripple of loss will be created as the meeting participants will discuss the incident with other colleagues outside of the meeting, stopping their focus on work, creating more loss.

The ripple of loss can spread through an organisation creating more distraction to work focus and thus loss, sometimes in human terms. This type of loss can be easily calculated as it is a multiple of the time lost to regain work focus by the hourly rates.

Though behaviours are a source of great loss in an organisation the associated loss is rarely calculated or the behaviours identified as the loss source, so the corrective actions implemented to prevent a recurrence will often fail.