Top Secrets Why Most Organization Fail

We can identify certain familiar reasons why Organizations fail to achieve a competitive advantage and end up losing out to their competitors.

Failing to recognize competitive threats

This reason is the exact opposite of failure to make use of the organizations strengths. Quite often organizations decide to pursue status quo and ends up bringing no new product or service or even no innovation in its existing product or service line leading to lack of customer satisfaction, decline in profits and finally being declared a failure.

Failing to take advantage of strengths and opportunities

This is in reality failing to hold on to proven successful strategies or core competencies. Sometimes a change in leadership leads to change in strategy, where just for the sake of glory and high profits, organizations forget their core competence and opt for strategies and tactic which cause their downfall.

Too much emphasis on short-term financial performance

Quite often, cost cutting, profit maximizing at the cost of social responsibility or employee motivation is a failed strategy pursued by organizations, which just hastens their status to oblivion.

Neglecting operations strategy

This is definitely the most important reason of failure; organizations often end up employing nonproductive techniques which lead to inconsistent and failed operations. Absence of an Operations Strategy leads to 

Neglecting investments in capital and human resources

A total disregard to use the best resource. Capital and human resources in the long run make or break an organization.

Too much emphasis in product and service design and not enough on improvement

Differentiation in terms of service and product, American companies in 1980s did that they never introduced incremental refinements rather went for big changes and thus lost to Japanese competitors.

Failing to establish good internal communications

Matrix organizations or hierarchy or such a strong structure that often the structure does not allow communication.

Failing to consider customer wants and needs

This is actually indicative of an organizations lack of marketing research skills. This also shows that there is no respect to Customer Relationship Management Concept and certainly no respect to the customer.

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