This document summarizes research on the causes of managerial failure in rapidly changing organizations. The top causes identified include ineffective communication skills, poor interpersonal skills, person-job mismatch, and failing to meet performance expectations. Additional frequent causes are an inability to break old habits, lack of delegation, lack of trustworthiness, inability to develop cooperation or teams, and poor planning. The research found that the single most important factor for keeping a job was excellent performance. However, most managers lack the expertise to adapt to rapid changes involving complex conditions since they are used to more stable environments. Developing social competencies like communication, relationships, feedback, and empowerment as well as personality traits such as positive attitude and risk-taking can help

1. CAUSES AND CONSEQUENCES OF
MANAGERIAL FAILURE IN
RAPIDLY CHANGING
ORGANIZATIONS
By –
Kevin Joseph
MBA (Energy Trading)

2. Managerial Life in 21st
Century
 Rapid market restructuring
 Rapid change
 Frequent Internal reorganizations
 Flattening of the world has made it easier for
the companies around the globe to compete
against each other.

3.  Change exposes weakness in managers
 But can also create leadership opportunities
for a few
 A research study was conducted among 2000
managers in 2001 and 5000 managers in
1999.
 Single most important factor to keep one’s
job was getting results/excellent
performance.

4.  Majority of managers do not have expertise to
cope up with rapid change involving complex
condition.
 They are well versed in old ways of thinking and
solving problems.
 They are successful in more stable environment .
 Fail due to inability to adapt to rapid changing
environment.

5.  Hence it becomes very important to study
and understand the reasons why managers
fail.
 So as to help reinforce the managers and
indirectly the organization to cope up with
this rapid change.

6. Finkelstein’s Research
Five major causes of Failure of a CEO
 Choosing to ignore change
 Pursuing wrong vision
 Being too closely connected to company
 Exhibiting executing arrogance
 Relying on past formulas for success

7. Reason for all this rapid changes
Main driving force - The need to protect or improve the
organization’s current competitive position in the market.
This includes –










Infusing new technologies
Process redesign
Mergers
Consolidations
Acquisitions
Reengineering activities
Organizational restructuring
Reconfiguring supply chains
Major work redeployment
Development activities

8. After Extensive Research
 Top 15 Primary causes for managerial failure -

9. 90
80
70
60
50
40
30
20
10
0
Ineffective
Poor interpersonal
Communication
skills
skill
person job
mismatch
Fail in
performance
expectation
Failing to break
old habits

10. 60
50
40
30
20
10
0
Lack of Delegation Lack of personal Unable to develop
integrity and
cooperation/
trustworthiness
teamwork
Unable to
lead/motivate
others
Poor planning
practices

11. 45
40
35
30
25
20
15
10
5
0
Failure to monitor Failing to remove
actual performance
performance
and provide
barriers/roadblocks
feedback
Ego, Attitude and
Indifference
problems
Failing to
select, promote and
develop talanted
people
Lack or misuse of
critical resources

12. Competencies necessary to survive
First set (Social in nature):







Effective communication
Relationship building
Clarifying expectation
Providing effective feedback
Empowerment
Team leadership
Motivating others

13. Second set (Personality based):
 Positive Attitude
 Integrity
 Character
 Commitment
 Risk taking
 Looking for new and better ways to do things
 Openness to change and adaptation

14.  Thee characteristics take quite a while to
develop.
 Therefore study them as early as possible and
start implementing as early as you can.

15. THANK YOU