Every organization that is experiencing success one day can find itself floundering the next. The following are the top 10 ways it can happen. You have heard it said, “You cannot manage what you do not acknowledge.” By understanding these ten derailers, we can more effectively prevent our organizations from going off the tracks.
1. Success that feeds arrogance which results in a sense of invincibility
In his book How the Mighty Fall, author Jim Collins said it best: “Every institution is vulnerable, no matter how great. No matter how much you’ve achieved, no matter how far you’ve gone, no matter how much power you’ve garnered, you are vulnerable to decline. There is no law of nature that the most powerful will inevitably remain on top. Anyone can fall and most eventually do.”
2. A team that does not have the right balance of leaders and managers
Managers
Hold a shorter-term view
Centered on a department
Emphasize policies and procedures
Focus on revenue allocation
Think tactically
Leaders
Hold a longer-term view
Centered on the whole organization
Emphasize innovation and change
Focus on revenue generation
Think systems
3. “A” level staff and board turning into “B” level staff and board
Marshall Goldsmith said it this way: “What got you here won’t get you there.” The talent that is required at one size of an organization will seldom suffice as the organization grows. And, when an organization grows faster than the capabilities of its leaders, problems are not far behind. The two greatest determining factors of success will be your competence and your ability to see and lead systems.
4. Erosion of team trust and synergy
Creating and maintaining long-term team health is no easy task. You can easily see and feel erosion in a team culture, but to measure trust and synergy in a team, look for the following:
Frequent conversation with a higher ratio of positive over negative interactions
Agreed-upon expectations and priorities
Members who have a high level of competency
A consistent environment of psychological safety
An atmosphere of fun
An abundance of flexibility and forgiveness
5. Running on the “bigger and better” leadership treadmill
When success has been experienced, some leaders are driven to do whatever it takes to become even bigger, better, and more well-known. The next growth fad. The next “must attend” seminar. The next leadership book that you must read. But remember to answer the “why” question before the “what.” Mechanical treadmills can be life-giving for your heart, but leadership treadmills can be deadly for your spirit.
6. Insufficient capacity for stress
Stress has been demonized. Stress is normal, and it can even be beneficial. But when it becomes unhealthy, it is usually a symptom rather than the problem. There are only two ways to deal with stress – reduce the load or increase your capacity. But remember, a team member’s stress is often from other sources beyond work, yet work will often be blamed. Talking about stress with a skilled advisor can actually decrease your stress, which is something all of us can benefit from.
7. Avoidance of candor
Pastor and author Jon Ortberg wisely notes the following about situations where candor is avoided: “When it is withheld, teams deteriorate, performances fail, families break apart, and companies go bankrupt. The lack of appropriate, effective confrontation is fatal to communities, and it can be lethal to individual men and women.”
8. Lack of grit
Enduring organizations have gritty leaders. What is a gritty leader? Someone who has…
Passion. Gritty leaders manifest a passion for what they do.
Work. Gritty leaders work harder than those around them.
Delayed Gratification. Gritty leaders sacrifice short-term gratification.
Focus. Gritty leaders zero in on what they want to accomplish.
Perseverance. Gritty leaders don’t easily quit.
9. Formalization that increases bureaucracy and decreases nimbleness
As organizations grow, bureaucracy commonly creeps in, resulting in decreased nimbleness and deadening effects. Common signs of bureaucracy include:
Oversaturation of policies and rules
Growing number of decisions that get bogged down
Decreased risk-taking for fear of getting in trouble
Policies and procedures taking precedence over solving problems
Staff and members increasingly seeing the organization as inflexible
10. Focusing more on what is being lost rather than on what is being gained
As organizations grow, there are gains, but there are also losses. We would be kidding ourselves to think otherwise. Below are some of the most common losses we hear from clients as well as some of the greatest gains.
Gains
More people being served
Attracting greater talent
Greater sense of excitement
New opportunities for the staff
Losses
Less input on some decisions
Farther distance from the top leader(s)
Reporting to new people
Knowing less of what is going on
Derailment often happens ever so slowly. Other times, faster than you thought possible. Leadership is responsible to keep the organization from derailing. How well is your organization doing at staying on the tracks?
Contact us to learn how our experienced consultants can assist you in planning for the future growth of your organization!
Jay Desko is the CEO of The Center Consulting Group and brings experience in the areas of organizational assessment, leadership coaching, decision-making, and strategic questioning. Jay’s degrees include an M.Ed. in Instructional Systems Design from Pennsylvania State University and a Ph.D. in Organizational Behavior and Leadership from The Union Institute.
