Posts Tagged ‘arrogance’

Five mistakes companies make leading to their demise

how the mighty fallOver the holidays, one of the books I read was “How the mighty fall” by Jim Collins.  One of my clients lent me his copy as a must read and I am glad that he did. In fact, I think this ought to be in the reading list of every manager and leader and in every company’s library!

The book is based on his extensive research resulting in a five-stage framework of how companies decline.   As someone who has also studied how companies become great, the author declares that, “assembling a data-driven framework of decline proved harder than constructing a data-driven framework of ascent.”

His model consists of five stages, which proceed in sequence.  Please note the shortened summary below is pretty much verbatim from this excellent, highly recommended, easy to read book.


Great enterprises can become insulated by success; accumulated momentum can carry an enterprise forward, for a while, even if its leaders make poor decisions or lose discipline. Stage 1 kicks in when people become arrogant, regarding success virtually as an entitlement, and they lose sight of the true underlying factors that created success in the first place.

When the rhetoric of success (“We’re successful because we do these specific things”) replaces penetrating understanding and insight (‘We’re successful because we understand why we do these specific things and under what conditions they would no longer work”), decline will very likely follow. (more…)

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