the Eagle Has Landed

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The 5 Stages of Decline

FIVE STAGES OF DECLINE: STAGE 1: HUBRIS BORN OF SUCCESS Great enterprises can become insulated by success; accumulated momentum can carry an enterprise forward for a while, even if its leaders make poor decisions or lose discipline. Stage 1 kicks in when people become arrogant, regarding success virtually as an entitlement, and they lose sight of the true underlying factors that created success in the first place.

STAGE 2: UNDISCIPLINED PURSUIT OF MORE Hubris from Stage 1 ("We're so great, we can do anything!") leads right to Stage 2, the Undisciplined Pursuit of More—more scale, more growth, more acclaim, more of whatever those in power see as "success." Companies in Stage 2 stray from the disciplined creativity that led them to greatness in the first place, making undisciplined leaps into areas where they cannot be great or growing faster than they can achieve with excellence—or both.

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.

STAGE 4: GRASPING FOR SALVATION The cumulative peril and/or risks gone bad of Stage 3 assert themselves, throwing the enterprise into a sharp decline visible to all. The critical question is: How does its leadership respond?

STAGE 5: CAPITULATION TO IRRELEVANCE OR DEATH The longer a company remains in Stage 4, repeatedly grasping for silver bullets, the more likely it will spiral downward. To read more on this go to the source.

To read more on this google the five stage of decline!

 

This page was last Updated Monday June 15, 2015 12:47 PM