35 Reasons-WHY ORGANISATIONS FAIL

We live in a world where the rate of change with respect to time is very high. There are a lot of companies who have failed to sail over this rate of change. To name a few would include companies like Kodak, Blackberry and Kingfisher airlines. The reasons that helped companies to succeed in the past may not be the ones that would lead them to success in the future. This is because the companies are going through an era and environment where the turbulence index is very high.

Well let’s have a look at why companies fail in a VUCA world.

1. Companies do not have a short term vision.
2. Companies have a fixed mindset and believe in the old methodologies.
3. Companies are having wrong assumptions and predictions.
4. Companies do not learn from minor failures.
5. Companies do not recognize what does not work in present.
6. Companies do not learn new models.
7. Does not encourage innovation
8. Does not make quick good decisions.
9. Does not have the ability to bounce back from setbacks.
10. Does not have the courage to take risks.
11. Utilization of obsolete systems.
12. Setting in of complacency.
13. No reflection and introspection
14. Arrogance of leaders of the company
15. Missing out on the earlier warnings
16. Inability to attract the right people for the right job.
17. Not inducing a collaborative culture.
18. Not sharing a common vision.
19. Inability to develop the internal capabilities within an organization.
20. Setback in managing the resources of the organization.
21. Failure in building up a learning culture.
22. Poor competitor intelligence.
23. Mergers and Acquisitions without homework.
24. Inability to read the mindset of employees.
25. Board members do not involve and do not turn up.
26. Companies lack professional management.
27. Ego centric founders with less adaptability
28. Very fast expansions using debt.
29. Diversification into unfamiliar areas.
30. Inability to read the changing perceptions of the customer.
31. Very poor corporate governance.
32. Having too much extroverts as leaders of a company.
33. Company’s inability to address its blind spots.
34. CEOs with lack of attitude, competence and experience.
35. Autocratic culture of functioning.

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