The Caution Trap

The Caution Trap

Kormac Insights

May 19, 2023

The Caution Trap
KPMG Advises "Avoid Excessive Caution"

Research has corroborated Teddy Roosevelt’s adage, “In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.” From Harvard Business Review to academic journals, business studies confirm that swift decision-making maximizes growth and profit potential.

This is a timely notion amid continued market and geopolitical volatility. KPMG’s recent manufacturing report, “On the Edge of an Upturn,” offers four Key Considerations:
1) Avoid excessive caution
2) Understand the true drivers of future performance
3) Be realistic about synergies
4) Divest businesses to fund growth ambitions

Profound uncertainty may be the “new normal,” but it need not be paralyzing. Uncertainty offers unique opportunities to cultivate organizational resilience and embrace new possibilities. Conversely, excessive caution stifles innovation, hinders agility, and obscures promising investment opportunities.

Leaders who pursue a balanced approach to risk can leverage uncertain times to transform their organizations and thrive in the years to come. When uncertainty starts to feel uncomfortable, we at Kormac remind ourselves of its many gifts.