Calculating the True Cost of Deadlock
In the world of governance and leadership, figures and calculations never lie. However, when sentiment and rhetoric override basic arithmetic, the consequences are felt far beyond the boardroom.
The 2022 Sibanye-Stillwater strike serves as a sobering example. After two months on strike, Category 4 workers had lost over R33,000 in wages, and Category 8 workers over R41,000. These losses exceeded the cumulative value of the wage increase offered over the first two years of the period.
When we stop doing the math, we stop practicing accountability.
1. The Ripple Effect of Unchecked Sentiment
A failure to calculate the “count” in accounting has a cascading impact on the national balance sheet:
- The Individual: Workers lose more in the short-term than they can recoup in the mid-term.
- The State: SARS loses millions in tax revenue.
- The Economy: Local businesses suffer, and foreign investors shy away from labor-intensive industries, fueling unemployment.
The ordinary citizen often stops making calculations, allowing politicians or unionists to determine behavior based on statements that may not be technically reliable.
2. Reclaiming the “Account” in Accountability
Accountability is not just a regulatory requirement; it is a technical discipline. It requires us to use simple, objective techniques to verify the reality behind the stories we are told.
To restore stability to our organizations and our country, we must:
- Verify the Data: Scrutinize the figures presented by any stakeholder.
- Account for Decisions: Use the “count” to measure the real-world impact of strategic choices.
- Demand Technical Truth: Move past “stories” and return to the immutable logic of financial performance.
Altimax: Your Specialist Partner in Performance
At Altimax, our Strategic Support division is dedicated to helping executives and boards put the “count” back into their decision-making. We provide the specialist clarity needed to ensure that your governance structures are built on truth, not sentiment.
We help you simplify the complexity of performance through:
- Performance Information & Reporting: Developing systems that ensure your “accounting results” are accurate and actionable.
- Risk Management: Calculating the true cost of strategic deadlocks and operational failures before they occur.
- Governance Facilitation: Providing boards with the technical tools to hold management and stakeholders accountable to the numbers.
Is your strategy based on stories or calculations? Book a Strategic Support Consultation or Consult our Performance Specialists to ensure your organization is truly accountable.
