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The “standard” causes of failure do not explain why smart executives fail
- “The executives were stupid.”
- “The executives could not have known what was coming.”
- Etc.
- “The executives were stupid.”
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New ventures often fail spectacularly
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Do not lose sight of what counts in any business venture
- Strategy
- Capability
- Customers
- Competitive advantage
- Strategy
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Innovation and change can cause failure
- Many companies choose not to cope with the change. They simply ignore it.
- Executives must motivate awareness and facilitate action within their companies in response to change
- Many companies choose not to cope with the change. They simply ignore it.
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Mergers and Acquisitions can cause failure
- The search for synergy and the quest for integration are key areas where failure can take place
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Challenges in companies related to mergers
- Hubris (pride)
- Integration
- Cultural roadblocks
- Hubris (pride)
- The search for synergy and the quest for integration are key areas where failure can take place
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Strategy Gone Bad: Doing the wrong things can cause failure
- Why strategists misread competition and select irrational strategies
- Beware of people blinded by hubris and/or desperation
- Why strategists misread competition and select irrational strategies
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The Causes of Failure
- Brilliantly fulfilling the wrong vision
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Delusions of a dream company – how executives avoid facing reality
- Does your company systematically exclude any information that could contradict its reigning picture of reality
- Does your company systematically exclude any information that could contradict its reigning picture of reality
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Tracking down the lost signals
- Why businesses don’t act on vital information
- Why businesses don’t act on vital information
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Seven habits of spectacularly unsuccessful people – the personal qualities of leaders who preside over major business failures
- They see themselves and their companies as dominating their environments
- They identify so completely with the company that there is no clear boundary between their personal interests and their corporation’s interests
- They think that they have all the answers
- They ruthlessly eliminate anyone who isn’t 100% behind them
- They are consummate company spokespersons, obsessed with the company image
- They underestimate major obstacles
- They stubbornly rely on what worked for them in the past
- They see themselves and their companies as dominating their environments
- Brilliantly fulfilling the wrong vision
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Learn from Mistakes
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Predict the future – look for the early warning signs
- Unnecessary complexity
- Speeding out of control
- The distracted CEO heavily involved in activities outside the company
- Excessive hype about the company and especially about the CEO
- A question of character (ethics and defensiveness)
- Unnecessary complexity
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Living and surviving in a world of mistakes
- Step up to learning and open mindedness
- Listen to people; learn from people
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Share worst practices, not just best practices
- Why did something fail and how can we learn from this failure?
- Why did something fail and how can we learn from this failure?
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Spread the news
- Active communication within the company and with stakeholders
- Active communication within the company and with stakeholders
- Step up to learning and open mindedness
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David M. Shedd - Move Your Company Forward 