A default in business is when you don’t make the decision that you know you need to make.
You know a certain executive is in the wrong position and is hurting the organization, but you leave him or her there because you don’t want to deal with the situation. That’s a default. You have a long-term customer who is sucking the energy out of your organization for a minimal profit and you know you should cut ties with that customer, but you don’t do anything about it. That’s a default.
If you decide that not taking action right now is the best decision and you don’t do anything, then that’s not a default. Not taking action is oftentimes the best decision. However, defeating yourself because you weren’t willing to make the decision that you knew was right is being defeated by default.
Part of being a business leader is having the courage to do what you know is the right thing to do.