Business failure is like a cancer. The process moves in stages until there’s no turning back for the Organization and its People. And just like cancer, no entrepreneur or leader wants to hear that their Organization is dying. However, if detected early, there’s a good chance of curing the ‘disease’ and save the entity from demise.

 In this Five-part Article Series, we will aim to analyze five core warning signals for a failing Organization, and we hope that at the end, we will be able to motivate some leaders to effectively take the necessary actions and avert the looming crisis. Like they say, ‘A stitch in time saves nine’.

Today, we will delve into Warning Signal #1: Excessive Pride or Arrogance created out of Success.

 In his wonderfully written book, ‘How the Mighty Fall’, Jim Collins correctly recognizes that warning signal one (He refers to it as stage 1) normally kicks in when Organizations and leaders become arrogant, regarding the success they have attained. They start perceiving it virtually as an entitlement, and they lose sight of the true underlying factors that created this success in the first place.

Well, you see, success can be a double-edged sword: While it is a desirable outcome for any individual, team, or Organization, it also has the potential to lead the Organization and all its people right into the trenches.

There are endless examples of Organizations on the local, regional and global scenes that have fallen victims to this invisible disease. And we are not only talking about SMEs, but even the large and well-established entities. Think about these: Property Masters, Zzimwe Construction Limited, Motorola, Kodak, Blackberry, and Hillsong Churches.

The Illusion of invincibility

 When individuals or Organizations experience prolonged periods of success, they often develop an inflated sense of self-confidence. Past achievements and victories create a dangerous illusion of invincibility, leading them to believe that they are infallible and immune to failure. They become complacent, failing to recognize the lurking threats and challenges that lie ahead.

 At this point, individuals and organizations sometimes become susceptible to:

·       Arrogance: They will tend to perceive themselves as superior to others.

·       Entitlement: They start believing that they deserve continued success without putting in the necessary effort or adapting to changing circumstances.

·       Neglecting Learning: By thinking that they possess all the answers, they neglect the critical function of learning and personal growth.

How to proactively manage Success

 To break free from this hubris trap born of success, as Jim Collins calls it, individuals and organizations must recognize the signs of excessive pride and take proactive measures to mitigate its effect. Here are some strategies to consider:

·       Cultivate Humility: Embrace the mindset of a life-long learner. Recognize that success is not a permanent state but a result of ongoing efforts and adaptability. Stay curious, seek diverse perspectives, and be open to feedback and positive criticism.

·       Encourage Dissent: Surround yourself with a team that challenges your thinking and brings diverse viewpoints to the table. Foster an environment where constructive criticism is welcomed and encouraged.

·       Stay Focused on Core Values: Ground yourself in a set of enduring core values that guide decision-making. Let these values serve a s a moral compass to navigate through success and adversity.

·       Only Invest in new arenas where you can attain distinctive capability, better than your competitors.

By practicing these strategies [and others deemed practical], Organizations of different sizes and nature, may avoid one of the greatest invisible warning signals of corporate failure – “Excessive Pride or Arrogance created out of Success”.

To be continued…