Thursday, November 12, 2009

Organizational Slippage


My boss recently gave me an article on how organizations end up in a slippage mode. This article was really focused on churches, however, I sense the same thing can apply to most organizations. So, here's the highlights of this article from Gordan McDonald entitled: How A Mighty Church Falls.


McDonald quotes Jim Collins in this article and identifies five stages in the process of organization slippage.

Stage One: Hubris Born of Success
  • Hubris is defined as arrogant conceit or as Collins puts it "an excessive pride"
  • This is a state of over-confidence in ourselves, our systems, and our successes
  • This often makes leaders blind to weaknesses within an organization
  • Reality: in this state there is a tendency to understate the problem and overstate your ability to accomplish
Stage Two: Undisciplined Pursuit of More
  • It is about getting larger and larger, more and more expansive, even if it costs the organization its soul
  • Overreaching stems from a temptation to think that if we're good at what we're doing, we can do anything else just as successfully
  • Sometimes this can mean migrating toward "more" and away from "wisdom"
Stage Three: Denial of Risk and Peril
  • Leaders and organizations ignore or minimize critical information or refuse to listen to things they do not want to hear
  • Collins is concerned for organizations who base their decisions on the basis of inadequate or mismanaged information
  • The most valuable information came through trusted, wise people who were empowered to systematically engage the community in conversation and with questions designed ahead of time
Stage Four: Grasping for Salvation
  • Lurching for a "silver bullet"
  • Betting big on an unproven product
  • Hiring promise-making consultants or seeking a new hero-type leader who can ride in on a white horse and singlehandedly save the day
  • A sense of desperation for a breakthrough victory
Stage Five: Capitulation to Irrelevance or Death
  • At what point did it start down the slope of organizational death?
  • Who missed the hidden signs?
  • Who ignored the core convictions?
  • Who misinterpreted the information?