Organization failure occurs when an
organizations fails to achieve a goal that was expected by one or more
persons. Goals have subjective value in that they represent value to
one or more persons. Thus, whether or not an organization has failed
(or succeeded) is subjective.
An organization that ceases to exist does
not imply that the organization has failed. It may have satisfied all
goals and is no longer of value to any individual. If an organization
does cease to exit and the amount of unsatisfied goals of individuals is
sufficiently large we can say that the organization has failed to the
point of collapse. See Joseph Tainter, "The Collapse of Complex
Societies" for examples of large system failures. The business and
computer literature is full of less spectacular collapses, but
nonetheless clear examples of organization collapse.
As an organization increases in the
number of goals and the number of people who have some goal expectations
of the organization, the probability that the organization will fail to
meet one or more persons' expectation significantly increases. This is,
of course, obvious. We rarely expect a large organization to make
everyone happy. This is the norm. So when I speak of organization
failure I will only use examples where the majority of people would
agree that they were failures.
The pattern of failures in my simulations
were not as simple as the patterns of success. One can, of course,
simply state that a lack of one or more of the critical success factors
causes failure, but this just prompts me to ask the obvious question,
"Why was the success factor lacking?" From this perspective I believe it
is useful to group the causes of organization failure into a few
categories; complexity, power disparity, faulty beliefs, playing the
odds, mediocrity, and the alpha passion. Let's look at each.
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(C) 2005-2014 Wayne M. Angel.
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