Jonathan Sharp, ceo from Britannic explains on how the fear failing is impacting SME businesses and potentially stunting growth and innovation.
The fear of failing haunts us all and in business, failures come with high stakes such as financial losses, reputational damage and job security. Preventing people from embarking on new projects or adopting new technologies, as they believe it’s safer to stick with the familiar even if they are prohibiting opportunities to innovate and remain competitive.
Better the devil you know
Many leaders in SME’s recognise the need for new technologies yet hesitate to make the leap. What’s holding them back? The fear of failure, not getting approval for investments, disrupting existing workflows, and the potential for failure that could tarnish the company’s reputation and limit career progression.
According to research by McKinsey & Company, fear of career impact is 3.6 times more prevalent among employees at organisations that are not considered top innovators compared to those that are. This fear leads to hesitation in investing in new technology projects, as potential career risks outweigh perceived benefits of innovation.
From FOMO to FOF
During COVID-19 pandemic, SMEs rushed to implement new technologies like Zoom and Microsoft Teams to work remotely. This was driven by “Fear of Missing Out” (FOMO). These decisions were often made hastily, without strategic planning, or integrating with existing systems.
The recent explosion in AI brought a new wave of fear, “Fear of Failing” (FOF). Despite the transformative potential it, many companies are hesitant to adopt it as it might replace jobs, fail to integrate smoothly into their existing operations, and not be embraced by the workforce.
Take the leap
Technology is the lifeblood of SMEs touching all departments. Without technological advancement, an SME risks falling behind its competitors. In a saturated and rapidly changing tech marketplace selecting the right technology can be a daunting task.
McKinsey’s research indicates that employees at leading innovative companies are 11 times more likely to report that their organisations encourage risk-taking and experimentation with new ideas. By working with a consultative partner, SMEs can mitigate risks associated with technology adoption, ensuring that investments are aligned with strategic goals and are supported by robust implementation plans.
Solution providers reducing the fear
A consultative partner can help reduce the fear of failure by guiding businesses through a well-defined success program. Understanding the company’s culture, unique needs, existing tech investments, addressing pain points and setting clear objectives.
Test, test, and test
Developing a proof of concept, or pilot significantly reduces the risk of failure. Enabling employees to engage with the new technology, provide feedback, and feel empowered in the adoption process. McKinsey notes that organisations with a strong innovation culture are five times more likely to encourage experimentation, leading to successful outcomes.
Safety in numbers
AI can analyse data quickly, providing insights that highlight issues, reveal patterns, and identify opportunities. Leveraging these insights allows SMEs to make informed decisions based on facts, reducing the fear of failure. By partnering with experts to explore the hidden insights in customer interactions, SME companies can drive growth and transformation with confidence.
Plan to succeed
The adage “If you fail to plan, you plan to fail” rings true, especially in technology adoption. Setting clear success criteria from the outset reduces the risk of failure. A well-structured plan enables businesses to make informed decisions, knowing they are on the right path to achieving clear and measurable results.
Change in culture and management
Creating a transparent and innovative culture is essential for fostering technological adoption. Encouraging employees to share ideas and take risks without fear of criticism is crucial, moving from a fixed mindset to a growth mindset, where failure is seen as a learning opportunity rather than a setback.
Taste of success
Instead of fearing AI, SMEs should embrace its potential. With the guidance of a trusted consultative partner, companies can navigate the complexities of AI with confidence, leveraging data insights to make intelligent, fact-based decisions. Remember, technology adoption is an evolutionary process, and as Winston Churchill said, “Success is not final, failure is not fatal: it is the courage to continue that counts.”
