The first example addresses contingency planning. A lot of business leaders have clear-cut contingency plans for worst-case scenarios. They know, for example, just what they would do to save the company if it were about to go bankrupt.
Well, if the best move is so obvious, why not just do it now instead of waiting to go bankrupt? In a lot of cases, figuring out how to make the move prior to reaching a true crisis is a lot better for the organization than waiting for rock bottom. And if things go well, there will be many more resources available to execute the plan than there would be if the company was running out of money.
The second example applies to firms who employ 'at-will'. Sometimes, an employee will get a new job offer and announce his or her intention of leaving a company. If the employee is a star, there will be a temptation to present a counter-offer and convince this person to stay. Deciding whether to do so is a decision that largely comes down to the individual in question and the organization’s ability to quickly fill vacated positions.
However, if a counter-offer is made, it comes with the likelihood of leaks. The employee has probably told a number of people in the organization about the new job; suddenly, things have returned to normal. Even if the employee keeps quiet, others will probably guess what happened and understand the best way to get an off-cycle raise is to generate an offer from a rival firm. As Horowitz himself points out, when a company publicly responds to squeaky wheels, it should prepare to start using a lot more grease...
