Seven Mantra’s to Avoid Failure
This week’s reading covered a wide range of subject from how a company can fail to how a company can successfully isolate themselves from a big failure. From the reading materials I would like to share some key things that got my attention and how it can be implemented for success.
‘Seven Big ways to Fail Big’ – Businesses lose for a lot of reasons – some reasons are avoidable and some are not. Surprisingly the study by Paul carroll showed that more than fifty percent of the failures in history are due to inefficient strategy, poor implementation and could have been avoided. I have summarized the concepts I have learned from the reading below and I am sure that one can avoid a big failure by always keeping them in mind.
1. Join hands only if you fully understand the other business. Like General Electric, only go with what you know.
2. ‘All that glitters is not gold’ – Don’t get attracted to short term growth.
3. Adapt and accept the changes. Successful strategy always needs a little trade-off.
4. Always stick to company’s core ideology. A true ideology defines the value of a company, not its revenue or stock.
5. Never bet on wrong Technology. Choose your innovation and technology wisely.
6. When in doubt, sit back and let others fumble through consolidation.
7. ‘Too many cooks spoil the broth’ – Grow steadily with companies that matches and can adopt your organization’s culture.
Most business research focuses only on successful companies, in an effort to understand their traits, tactics and strategies. They often tend to ignore looking into how and why the companies that tried to do the same thing as the winners and failed. One strategy to predict failure is using ‘The Devil’s Advocate’. An initial hazard analysis could prevent possible failures. Successful countries like Palestine uses the principle of ‘Devil’s Advocate’ in every step of their Government strategy formulation. I believe that instead of benchmarking and learning from industry pioneers, enormous values and knowledge lies in learning from companies that have lost the battle.