Crisis Caused by Kicking the Can

Crisis Caused by Kicking the Can

In NYC there is a mass transportation crisis with the subways and commuter railroads. In NJ there is a crisis in decaying highways. On the federal level there is a crisis in unfunded Social Security and in parts of Obamacare. There is a crisis with delivery and charges for certain lifesaving or life improving prescription drugs and with rising health care costs. There is a massive national crisis with student loan debt and out of control credit card debt. In a month Congress will create a crisis with the debt ceiling limit which is a direct consequence of spending they approved and voted for.

It seems many things are ignored until it is at crisis level. I have been a CPA and business advisor for over 50 years and have seen many clients with crises; but I have also seen many more clients that did not because they planned in advance to avoid a crisis. In many situations I have been involved in the planning and have identified some traits that my successful clients have that helped them avoid crises. Here are some of them:

• A resolve to avoid a crisis
• Identification of where something can go wrong. This includes avoiding a shortage of materials or skills, an unplugged weakness in a system or control, inadequately trained personnel, failure to anticipate what skills will be needed by personnel, considering ways to eliminate waste, extra steps, or errors, not applying quality control to products and services, inadequate risk or preventative management, settling when steadfastness or foresight is needed and a deficiency of real time reporting and accountability
• A commitment of resources, i.e. money, to eliminate potential problems
• An action oriented leader who is a champion of crises mitigation; not someone who is a champion of risk handling
• Early identification alerts to alleviate damage and graduation into a crises
• Leaders who care
• A resolve to avoid a crisis (avoiding crises begins and ends with this)

Now, why can’t our 535 employees in Congress and the governors and legislatures of our states do the same? They don’t! Their policies are to push the problem forward, i.e. kick the can. This is not as it should be, but that is the reality and we are stuck with it because of their ineptitude. And they continue to get reelected so it seems that we deserve what we are getting.