This week a major waterline burst in a pipe under Sunset Blvd., a major artery in West Los Angeles, dumping millions of gallons of water onto the UCLA campus. Go Bruins! Oof!. Pauley Pavilion, the historic site of so many national basketball championships, just refurbished 2 years ago, was completely underwater. The wooden floor was destroyed. 400 cars in a parking structure were totaled in the flooding. Who is going to pay for all that? What a big infrastructure problem.
In Los Angeles, the City Council has not permitted a rate increase for many years despite repeated requests from the Department of Water and Power. It makes the City Council Members very popular. The current replacement schedule is every 300 years whether they need it or not. Typical, yes! And, don’t we in business do the same thing? We look for short term profits when we know we are risking a total break-down of systems that will have disastrous consequences. We take the risk.
Our infrastructure is not just the obvious IT system and its never-ending demands for upgrades and better security. What about preparing the next generation of leaders to replace your aging management team? Sorry, that probably means you, too. What about your customer relations management system – how you reach out to, retain and service your customers. What about replacement of your aging products or services with new innovative ones? Are you investing in the Research & Development needed for your company to be a leader in the next decade and beyond?
And, of course, I have to ask about the obvious-what about your equipment, your buildings your trucks, and your office environment? Do you have a regular replacement plan?
Please take some time to assess your risk with your management team. Pick the top 3 risks and address them before the end of the year…..be honest. If someone on your management team (maybe you) is at the biggest risk of breaking down, retiring, or leaving for a competitor, why wait until it happens and deal with it then? It’s going to be a lot like that wooden floor in Pauley Pavilion.