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In 2 Chronicles 34 & 35, Josiah allowed—even commanded—his people to spread new information about God’s law openly. In an excellent analysis entitled “Understanding Organizations as Learning Systems”, Nevis, DiBella and Gould suggest a “climate of openness” as a key factor in expediting learning. Without a climate of openness, learning is stifled. With it, organizational learning, as we see in Josiah’s reform, can take on enormous dimensions. An open climate in an organization makes an important contribution to any group that wants to develop an effective learning system.
Jim Collins—noted author of business best sellers Good to Great and Built to Last—researched factors that led the great companies of his previous studies into decline.
In How the Mighty Fall he writes of five stages of organization decline that are instructive to those of us who are shooting for the stars with our organizations:
1. Hubris Born of Success:
It’s easy for organizations to become arrogant and lose sight of the true underlying factors that created success. At NASA, it has always bothered me at times that we talk of ourselves as being the “best in the world.” When I was able to spend some time working at the World Bank’s International Finance Corporation in Washington, D.C., I was very impressed with their Human Resources Department. They talked about being a high-performing organization. I liked that language because it leaves room for continuous learning and improvement.
2. Undisciplined Pursuit of More
For Opposite Day on January 25, I wrote about a personal leadership trap to avoid—“More On” Behavior. Collins describes the organizational equivalent. Successful organizations can make undisciplined leaps into areas where they cannot be great or growing faster than they can achieve with excellence—or both. Before pursuing new business, the organization should ask:
- Does this ignite passion and fit with our core values?
- Can we be the best in the world at this?
- Will this help drive our economic or resource engine?
Collins asserts that although complacency and resistance to change remain dangerous, overreaching better captures how the mighty organizations fall.
3. Denial of Risk & Peril
Leaders of successful organizations begin to discount negative data and amplify positive data. They set big audacious goals that aren’t based on accumulated experience or ignore the risks when faced with ambiguous data. There is a marked decline of dialogue & debate on the team. When things go wrong, leaders blame external factors… Finally, rather than confronting the brutal realities, the organization chronically reorganizes…
4. Grasping for Salvation
As the downward spiral begins, how does the leadership respond? Do they look for quick fixes, or do they return to the disciplines that brought them greatness in the first place? Collins notes that when we find ourselves in trouble, on the cusp of falling, our survival instinct can evoke lurching, reactive behavior contrary to survival. The moment we need to take calm, deliberate action, we run the risk of doing the opposite to bring about the outcomes we fear most.
5. Capitulation to Irrelevance or Death
In the end—when the Mighty Fall—leaders abandon hope of building for future…
The good news, however, as Collins explains is his research indicates that organization decline is largely self-inflicted. Therefore, recovery is largely within our own control. So, if you find your organization in a state of decline…look for these factors…
More importantly, cultivate a “climate of openness.” Then, like Josiah did, you’ll have a chance of restoring your organization to greatness!