In recent months, it appears that “failure” and learning from them appears to be a fresh theme in business books. For instance, Jim Collins just came out with “How the Mighty Fall.” Although I may not be a huge Jim Collins fan, he is a great writer that is able to sell his ideas. And How The Mighty Fall will be no different. Interestingly, Collins speaks directly to the heart of Silent Problems in his Stage 3 analysis. From Business Week:
Stage 3: Denial Of Risk And Peril:As companies move into Stage 3, internal warning signs begin to mount, yet external results remain strong enough to “explain away” disturbing data or to suggest that the difficulties are “temporary” or “cyclic” or “not that bad,” and “nothing is fundamentally wrong.” In Stage 3, leaders discount negative data, amplify positive data, and put a positive spin on ambiguous data. Those in power start to blame external factors for setbacks rather than accept responsibility. The vigorous, fact-based dialogue that characterizes high-performance teams dwindles or disappears altogether. When those in power begin to imperil the enterprise by taking outsize risks and acting in a way that denies the consequences of those risks, they are headed straight for Stage 4.
The role of Silent Problems and the resultant Without Warning events are paramount in every organization. Those that deal with them upfront have the Good to Great mentality.