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.