Comic illustrator Gary Larson published a cartoon several years ago that showed 3 dinosaurs hiding in a corner smoking cigarettes with the caption, “The real reason dinosaurs became extinct.” As we exit 2009 and head into 2010, I’m certain that numerous conversations in restaurants, boardrooms and private residences will delve into “The real reason why corporation XYZ failed.” The list of reasons will be numerous, including:
- China
- The banking crisis
- Industry contraction
- Obsolesence
- The wrong people in the seats
- Poor strategic plan
- Technology
- Fate - it was eventually going to happen
The list could go on and on. The reasons numerous and varied. They’re all right, and they’re all possibly wrong. I’m convinced that in many situations, “The Real Reason” will be different from what is believed. To the contrary, many companies will fail because of the silent problems inside their organizations. For instance:
- What problems were being avoided for years, and eventually surfaced with a bang?
- What problems weren’t being noticed, simply because the organization had adapted to the situaion? Yet in the long run, compromise could only last so long.
- What problems were being neglected, simply because a good scenario for solving them couldn’t be found?
What I’m presenting here is simple. Over time, silent problems choke the very life and effectiveness of the organziation into submission. YES, silent problems are nasty if left unnoticed and/or unsolved.
New Years Resolution Suggestion: I encourage every organization to conduct a silent problem audit inside their organization and then take steps to solve them.
Earlier in the week, I wrote about how Toyota’s sales had been declining due to lapses in quality, reputation and design. Today, the LA Times in an article titled
The “Too Big To Fail” debate has been rampant for well over a year now as institutions like GM, CitiGroup, AIG,Chrysler and numerous others have essentially failed, only to be rescued by the US Government. Lack of leadership. Ineffective risk management. Rogue teams with few controls. Bloated cost structures. These are a few of the reasons why they failed. But what isn’t being offered up as a reason is this:
Yesterday, I viewed Sony as a brand name that was worth the price. Today, I wonder if Sony is wasting away in a place called Sonyville, a small imaginary island in the South Pacific. It’s a land filled of yesterday’s achievements and devoid of today’s reality. It’s a land with tall buildings, smart people and smart titles. It’s a land that took decades to build and just maybe, it’s a land with many similarities to GMville.
Famous Canadian philosopher Marshall McLuhan once wrote, “We look at the present through a rearview mirror; we walk backwards into our future.”