On The Way Down

Posted on May 31, 2010 by Ronald T. Brown, Ph.D.

We have all observed companies who experienced high levels of success, only to be followed by an extended time of decline, or even failure.  Examples include IBM, General Motors, K-mart, United Airlines, the United Nations, Michael Jackson, and businesses and churches in your own city or town.

In assessing

premier organizations start to experience decline or failure – the following themes stand out:

• Products or services are priced higher relative to the competition, yet do not offer a significant level of added value.

• Innovative and aggressive competition is not acknowledged, nor respected.

• There is a low sense of urgency. The organization has become reactive, verses proactive in its posture.

• The quality of service is declining or faltering – and excuses are being made as to why this is happening – allowing the trend to continue.

• There is a high level of staff (or member) turnover and/or disengaged staff – and organizational leaders are ignoring the underlying reasons for this trend.

• (Related to the point above…) The organization keeps, and even protects, marginally competent staff, managers, and leaders. The organization takes the easier road of keeping a marginally competent person, verses making needed changes regarding the level of competency.

• There is a history of poor recoveries with customers when inadequate service has been provided.

• The leaders in the organization are are primarily focused on

internal

factors – on internal processes, operations, staff, measurements, and policies.

• The organization is slower and slower to innovate.  Innovation only occurs when it is forced upon them.

Finally

, the death of an organization is imminent when its leaders lack an understanding (or remain in denial) regarding why these factors are occurring.  Instead, they make excuses and transfer the blame for the decline to something outside their control. 

Which issues mentioned above is your organization prone toward?  What are you doing about it?