Over the
past few years I have had the opportunity to observe, in some cases at first
hand, the falls from grace of a number of the UK’s most vaunted businesses. This has not been a pleasure. In fact it has been all too painful to
watch. However, as I have had the chance
to reflect on these corporate “crash and burn” scenarios, there are a series of
observable patterns, that indicate to the wise the likelihood that burning ambition
and ego are about to take down another erstwhile corporate hero.
So if there
are observable patterns why does nobody manage to intervene? I’m blaming the corporate Kool-Aid* (see below) – the
ability of an organisation to delude itself over a long period of time by
constantly reminding itself of its perceived corporate brilliance. It is the creation of a self-destructive mass
delusion on a grand scale, usually perpetrated by an unfettered charismatic
leader and it really does happen.
The question
that most participants and commentators alike have on their lips at the time of
the crash and burn is almost always – “Why did we/they not see this
coming?” An overarching sense of
bewilderment and betrayal can often pervade the thoughts of those
involved. As one senior executive told
me, “When I finally understood the new information we were being presented with
it was as if I was waking up from a dream and finally seeing the business for
what it really was. It was as though we
had all been living in an alternate reality.”
This reported state of corporate trance is a common feature amongst the
disillusioned executives and staff at the failing institutions. So how does it occur? How
can we tell if we and the other corporate stakeholders are “Drinking our own
corporate Kool-Aid”* and slowly anaesthetising and blinding ourselves to the
malpractice and misbehaviour of our leaders and peers? Is there a way to tell if we are on the path
to wrack and ruin? Well it’s not
scientific but for me the list below gives a pretty good indication of whether
or not your business is about to combust.
N.B. If you
have been drinking the corporate Kool-Aid you will simply believe that the
warning signs below are misconceived and couldn’t possibly relate to your own
fabulous corporate colossus.
10 signs you’re company has been
drinking their own brand of corporate Kool-Aid.
Score 1 point for each statement that applies to your company.
1) Your company has just moved to a
swanky new corporate HQ that is lavishly furnished making it look more like a 5
star hotel in places than an office.
2) Your charismatic CEO is now making multiple
appearances in lifestyle magazines and on both serious business TV and the
lighthearted breakfast TV “sofa”.
3) Your
CEO deploys an autocratic style – it’s just how he/she works. There are other senior executives around but
they are mostly there to do the bidding of the CEO. Bidding that can often be
idiosyncratic and whimsical.
4) Your company pays really well. It probably pays better than many other
similar companies (not, of course, that any company is at all similar to your
unique enterprise)
5) Your company doesn’t use consultants or
advisors. It’s a matter of principle and
an article of faith. Your company has a
unique culture and vision that simply cannot be helped by “old school”
advisors.
6) Your company also has an “interesting” Board
structure. The Non-Executive Directors
(if they are present) are probably friends of the founder or distant investors
and may have little to no experience of the industry your business is in.
7) Your company is lawyered up. You’re not sure what they do or what they are
working on but they are always around having intense meetings with senior
executives and there are lots of them.
8) Your company has a culture where everyone works
really long hours but participates in the wildest corporate parties. It’s a work hard/play hard philosophy and if
you’re not up for it you’d better leave.
9) Whilst we are on the subject of benefits your
company has a fabulous employee share scheme that you’d be mad not to invest
your hard earned cash back into. The
business is going to make you a millionaire despite the fact you currently have
a middle manager role in Finance.
10) Your
company is a self-proclaimed innovative business. Not a day goes by when the CEO or someone
else in management doesn’t mention how innovative a company you are a part
of. Your company may only really have
one basic product and a few variants but you are undoubtedly an innovative
company.
If you
scored 3 or less – relax – your company is just drinking good old still water
If you
scored 4 or 5 - panic not – your company is just drinking sparkling water
If you
scored 6 or 7 - review your options – your company is drinking something
decidedly exotic
If you
scored 8 or more – run for the hills – sell your stock and shred anything with
your name on it – your company is drinking the Kool-Aid and is in for some
serious trouble.
Unfortunately,
once the corporate Kool-Aid is on the menu it is very difficult to persuade the
organisation of the need to change. Like
the Titanic the business is destined to hit the ice-berg – it’s only a matter
of timing.
That said,
if you are worried about the corporate risks your business is employing or
would like a diagnostic view and assessment then please do get in touch – I’d
be happy to help.
*"Drinking the Corporate Kool-Aid" is a figure
of speech commonly used in the United States that refers
to a person or group holding an unquestioned belief, argument, or philosophy
without critical examination. It could also refer to knowingly going along with
a doomed or dangerous idea because of peer pressure. The phrase typically
carries a negative connotation when applied to an individual or group. The
phrase derives from the November 1978 Jonestown deaths where members of the People’s Temple, who were followers of the Reverend
Jim Jones, committed suicide by drinking a mixture of a powdered soft drink
flavoring agent laced with cyanide. Although the powder used in the incident
included Flavor Aid, it was commonly referred to as Kool-Aid due to its status
as a generic trademark. - Wikipedia
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