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The 5 Stages of Decline
In his book “How the Mighty Fall,” business expert Jim Collins outlines what he believes are the five stages of decline for top organizations:
Winter seasons are underway across sports — and many teams that finished at the top of the standings last year will come in with high expectations once again.
But coaches banking on returning talent, the same tactical schemes or similar opponents on the schedule may want to consider a concept from business expert Jim Collins.
In his book “How the Mighty Fall,” Collins outlines what he believes are the five stages of decline for top organizations — and they’re relevant far beyond the boardroom:
1. Hubris born of success
•General arrogance in which achievement is widely viewed as a right
•Losing sight of the hidden factors that led to positive results in the first place
•Failure to recognize the elements that distinguished the team initially
2. Undisciplined pursuit of more
•Past success creating a sentiment of invincibility
•Taking un-calculated risks
•Greed and a desire for more becoming the overwhelming mindset
3. Denial of risk and peril
•Dismissing negative data; amplifying positive
•Blaming external factors for poor results
•Putting a positive spin on setbacks
4. Grasping for salvation
•Decline is evident, even to outsiders
•Sweeping changes are made to try to get back on track
•The quest for the miracle solution or savior begins
5. Capitulation to irrelevance or death
•Setbacks completely erode strengths
•Morale disappears, and trust is gone
•Leaders also lose hope
While we don’t necessarily need to make dramatic changes if we’ve had success, simply resting on our laurels and assuming similar results will follow can easily lead to our downfall.
The best teams in any industry don’t play the scoreboard of the past.
They remain inspired, innovative and motivated regardless — recognizing that the impressive results of yesterday matter little if there’s arrogance and complacency tomorrow.
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