Tendency to Let Standard Slip

A growth and underinvestment with a drifting standard structure is simply an elaborated growth and underinvestment structure where the growth inhibitor induces a decline of the standard over time. The real nasty thing about this structure is that the growth inhibitor influence sets up a reinforcing loop which even further promotes a drifting of the standard over time.

Strategy

As with the Growth and Underinvestment structure knowing ahead of time is the best option. In this instance it is critical that you realize that if you allow the standard to slip you’ll have to allow it to slip even further. Nail it down and work on capacity development post haste.