» The failure of success

It’s the dinosaur effect. Powerful organizations and movements in one era end up crippled or extinct in another.

David and Mark Nadler have studied the effects of success on organisations. They contend, “Organizations become so convinced that what they’re doing is right that they stop paying attention to changes in the outside world—new competitors, new technologies, changing customer tastes.” Nadler and Nadler describe the five characteristics of organisations that have succumbed to the “success syndrome”.

1. Internal focus and insularity
Convinced of its dominance, the organisation assumes it has nothing to fear or to learn from its rivals.

2. Codification
Informal methods are associated with success and become formalised, inflexible policies and procedures. There is an emphasis on following correct procedure rather on getting the job done. With an increase in formality and orderliness comes a loss of creativity and innovation. Risk takers begin to leave. Leadership becomes more “professional” and aware of its position.

3. Complexity
As more and more practices become codified, complexity increases dramatically. The growing demands for formalised control—compounded by the growing focus on internal power and politics—lead to more and more bureaucracy.

4. Conservatism
As success becomes entrenched, risk is discouraged. Too much is at stake. At this stage the tension between the real and the ideal is diminished by a greater acceptance of the way things are. Significant results are still being achieved but the rate of growth is declining. There is a desire to protect and enjoy what has been achieved. The movement’s past is idealised. There is a lack of urgency regarding the future, resulting in reduced pro-activity and risk-taking. Security now is chosen over risk for future gains.

5. Disabled learning and reduced innovation
The organisation ceases to experiment, to learn from failure, or to learn anything new at all.

I wonder if Christian movements are immune from these trends? Anybody out there want to add to the Nadler’s five?

Digging deeper
David A Nadler and Mark B Nadler. The Success Syndrome: Why established market leaders usually stumble—and what you can do to prevent it. Leader to Leader, No. 7 Winter 1998.