It's an all too common scenario: A great company breaks from the pack; the analysts are in love, the smiling CEO appears on the cover of Business Week and Fortune, the stock explodes. Employees, stockholders, vendors, and customers are happy. Two years later, the company is in flames, the pension plan is bleeding, the CEO is under attack or even indictment - and the stock is worthless.
We're suffering an epidemic of leadership failure. How can this vicious cycle be broken? How do you know if your company is vulnerable? How can investors and managers reduce the likelihood of being disappointed by a company's performance?
One astonishing finding must be mentioned: Businesses that have nothing in common turn out to fail for exactly the same reasons. Even the excuses that failed managers offer turn out to be the same.
Most of the companies fail during four major business passages: creating new ventures, dealing with innovation and change, managing mergers and acquisitions, and addressing new competitive pressures. These are multifaceted events that involve some degree of corporate transformation, and are very complex. Instead of bringing out the hidden strengths of a business, each of these challenges tends to bring out the hidden weaknesses.
We discovered that precipitous business failures are caused by four destructive patterns of behaviour that set in, without anyone noticing them, well before a business goes under. These four syndromes involve:
Long before there are obvious danger signs, several of these syndromes can take hold of executivebehaviour. While the business might appear outwardly healthy, the inner mechanisms are breaking down. Examining these interrelated behaviour patterns, one at a time, makes it chillingly clear how each one can set a business up for collapse. Together they provide a framework on how to think about business failer.
By studying the great corporate mistakes made by executives struggling with the key challenges of new venture creation, innovation and change, mergers and acquisitions, and competitive rivalry, we gain insight not just about what not to do, but about what you should do. By the destructive syndromes behind failure-executive mind-set failures,delusional attitudes, communication systems breakdowns, and unsuccessful leadership habits - you learn not just what not to do, but what you should do. And by studying early warning signs and how to diagnose and prevent business mistakes, you learn not just what not to do, but what you should do.
That is why International Business Development Alliance monitors many companies
in the Global Collection of International Business Development. By trying to solve the problem of how smart executives fail you will learn how smart executives can succeed. To get more information about the Global Collection of International Business Development [email protected].