Why companies fail

The problem today is not an inability to take change action but an inability to take appropriate action, organization leaders seek solutions in the wrong place. 

The biggest challenge to most of the successful companies happen when they face big changes in their environment, they often fail to respond effectively.

Why companies fail

Unfortunately some ultimately manage to recover usually after painful losses but many don’t.

Strategic frames turn into acceleration blockers

Strategic frames are the sets of assumptions manages make about the business world; they help managers answer complex strategic problems by giving them a framework to begin with. Strategic frames can be very beneficial in allowing managers to find solutions to difficult tasks, but they can also hinder. When managers find the same frames working over and over they begin to believe that those frames are the solutions, the only things that matter. However, when an environment changes, the strategic frames need to change also. Many mangers have problems identifying this because they have used the same ones successfully for so long.

Processes become dangerous routines

Companies often find it hard to change processes that have worked for many years, but sometimes that is the one thing that is really needed. Sticking with the same business processes within a changing environment is like digging your self into a hole or getting stuck in a rut on the road to continued success. Long used processes become comfortable and routine, but routine is not good for innovations because it keeps companies from looking for a better solution.

Relationships become chains

Relationships always have been and will be an important part of a successful business, but sometimes these relationships can run too deep creating inflexibility for the company.

Values lose power and become dogmas

Values are the inspirations of businesses. They let the customers know what the company is all about and unify the employees of the company.

These values start out as pure and great things for a company, but as the company grows and matures these values can move from being a positive thing to rigid rules that bind the company.

Many companies suffer from active inertia because they are stuck in the past. These companies can see that problems are on the way and s into action. The mistake these companies make is that not enough thought is put into the actions taken

Published by Raffaele Felaco

I am an enthusiastic leader with strong background in direct and indirect sales with an exten- sive experience in both retail and wholesale business. I have been fortunate to have worked alongside teams in structured environments both in Italy and abroad over the last 20 years, en- abling me to develop strong leadership skills, a natural approach in effective communication, the ability of positively influencing others and master complex business negotiations.

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