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How the Mighty Fall:
The 05 Stages of a Company
          Failure
Introduction
• Every institution, no matter
  how great, is vulnerable to
  decline.
• Anyone can fall, and most
  eventually do.
• But decline, it turns out, is
  largely self-inflicted, and
  the path to recovery lies
  largely within our own
  hands.
Introduction
• We are not imprisoned by
  our circumstances, our
  history, or even our
  staggering defeats along
  the way. As long as we
  never get entirely knocked
  out of the game, hope
  always remains.
• The mighty can fall, but
  they can often rise again.
Hubris Born of Success
• Great enterprises can
  become insulated by
  success.
• Stage 1 kicks in when
  people become arrogant,
  regarding success and they
  lose sight of the true
  underlying factors that
  created success in the first
  place.
Hubris Born of Success
• The best leaders never
  presume they've reached
  ultimate understanding of
  all the factors that brought
  them success.
• For one thing, they retain a
  somewhat irrational fear
  that perhaps their success
  stems in large part from
  fortuitous circumstance.
Undisciplined
               Pursuit of More
• When an organization grows
  beyond its ability to fill its key
  seats with the right people, it
  has set itself up for a fall.
• Some companies willing to
  increase, try to make
  undisciplined leaps into areas
  where they cannot be great or
  growing faster than they can
  achieve with excellence.
Denial of Risk and Peril
• Sometimes companies can
  face warnings situations, but
  some leaders can suggest
  that such troubles or
  difficulties are "temporary" or
  "cyclic" or "not that bad“.
• In Stage 3, leaders discount
  negative data and amplify
  positive data. They prefer to
  blame setbacks rather than
  accept responsibility.
Grasping for Salvation
• When we find ourselves in
  trouble our survival instinct
  and fear can prompt reacted.
  Instead of being calm we run
  the risk of exactly doing the
  opposite.
• Common "saviors" include a
  charismatic visionary leader,
  a radical transformation, a
  dramatic cultural revolution or
  any number of other silver-
  bullet solutions.
Grasping for Salvation
• It is necessary in hard
  times to be calm, clear-
  headed, and focused
  approach. If you want to
  reverse decline, be
  rigorous about what not
  to do.
• Initial results from taking
  dramatic action may
  appear positive, but they
  do not last.
Capitulation to Irrelevance
                or Death
• Accumulated setbacks and
  expensive false starts erode
  financial strength and
  individual spirit to such an
  extent that leaders abandon
  all hope of building a great
  future. In some cases the
  company's leader just sells
  out; and in the most extreme
  cases the enterprise simply
  dies outright.
Conclusion
• The point of the struggle is
  not just to survive, but to build
  an enterprise that makes
  such a distinctive impact on
  the world it touches.
• To accomplish this requires
  leaders who retain faith that
  they can find a way to prevail
  in pursuit of a cause larger
  than mere survival.
Lico Reis Consultoria
      & Línguas

 Prof. Roberto Lico Reis

        www.licoreis.com
     licoreis@licoreis.com
 E-books: www.migre.me/oQ5
 Linkedin: www.migre.me/1d9r
        Twitter: Licoreis      ∴

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How Mighty Fall

  • 1. How the Mighty Fall: The 05 Stages of a Company Failure
  • 2. Introduction • Every institution, no matter how great, is vulnerable to decline. • Anyone can fall, and most eventually do. • But decline, it turns out, is largely self-inflicted, and the path to recovery lies largely within our own hands.
  • 3. Introduction • We are not imprisoned by our circumstances, our history, or even our staggering defeats along the way. As long as we never get entirely knocked out of the game, hope always remains. • The mighty can fall, but they can often rise again.
  • 4. Hubris Born of Success • Great enterprises can become insulated by success. • Stage 1 kicks in when people become arrogant, regarding success and they lose sight of the true underlying factors that created success in the first place.
  • 5. Hubris Born of Success • The best leaders never presume they've reached ultimate understanding of all the factors that brought them success. • For one thing, they retain a somewhat irrational fear that perhaps their success stems in large part from fortuitous circumstance.
  • 6. Undisciplined Pursuit of More • When an organization grows beyond its ability to fill its key seats with the right people, it has set itself up for a fall. • Some companies willing to increase, try to make undisciplined leaps into areas where they cannot be great or growing faster than they can achieve with excellence.
  • 7. Denial of Risk and Peril • Sometimes companies can face warnings situations, but some leaders can suggest that such troubles or difficulties are "temporary" or "cyclic" or "not that bad“. • In Stage 3, leaders discount negative data and amplify positive data. They prefer to blame setbacks rather than accept responsibility.
  • 8. Grasping for Salvation • When we find ourselves in trouble our survival instinct and fear can prompt reacted. Instead of being calm we run the risk of exactly doing the opposite. • Common "saviors" include a charismatic visionary leader, a radical transformation, a dramatic cultural revolution or any number of other silver- bullet solutions.
  • 9. Grasping for Salvation • It is necessary in hard times to be calm, clear- headed, and focused approach. If you want to reverse decline, be rigorous about what not to do. • Initial results from taking dramatic action may appear positive, but they do not last.
  • 10. Capitulation to Irrelevance or Death • Accumulated setbacks and expensive false starts erode financial strength and individual spirit to such an extent that leaders abandon all hope of building a great future. In some cases the company's leader just sells out; and in the most extreme cases the enterprise simply dies outright.
  • 11. Conclusion • The point of the struggle is not just to survive, but to build an enterprise that makes such a distinctive impact on the world it touches. • To accomplish this requires leaders who retain faith that they can find a way to prevail in pursuit of a cause larger than mere survival.
  • 12. Lico Reis Consultoria & Línguas Prof. Roberto Lico Reis www.licoreis.com licoreis@licoreis.com E-books: www.migre.me/oQ5 Linkedin: www.migre.me/1d9r Twitter: Licoreis ∴