Nothing fails like success

A very powerful statement…” nothing fails like success”

When I read this statement, I had to think about the possible meaning. How can ‘success fail’? As business owners, we endeavor to be successful and grow sustainable companies.

According to ActionCOACH, the goal is to build profitable, commercial enterprises that effectively work without the owners. The upside of a successful business is an acceptable ROI and available discretionary net income to the owners and freedom of choice of lifestyle.

There is, however, a downside to continuous, unchallenged success namely the onset of complacency, inefficiency, and worst of all, arrogance.

Some recognizable signs of this are:

• Inattention to details like standards of housekeeping and maintenance of equipment, front of the house, furniture, etc.
• Tired-looking staff, overworked and sluggish
• ‘Perceived indifference’ with lack of customer service and feedback to questions and reviews
• Becoming ‘inflexible’ with operations and execution…” we have always done it this way”
• Over-confidence in continued demand for products and services has always enjoyed a niche market position for long periods of time
• A disregard for company governance and regulations
• Enjoyed a long period of being a market leader with undisputed market dominance

A recent example of success failing is the ‘fall’ of the mighty Steinhoff and former CEO Markus Jooste, scandal.

Occurrences like the ‘Steinhoff fall’, should be a reminder that continued success in business is never a given, that respect in the marketplace should always be earned and ongoing innovation is critical for sustainable growth.

Herewith are a few guidelines to avoid complacency and the inevitable downfall:

Firstly, nurture an acute awareness of ever-changing market conditions like changes to supply and demand, and changes in the market ecosystem that impacts future growth

Secondly, invest in building self-managing teams that are flexible, mandated with fast decision-making in a spirit of collaboration throughout the company between various functions

Thirdly, prioritize the inhouse sharing of critical information – get updated and stay updated to enhance a competitive edge

Finally understand the importance of a strong company culture that supports individual development and learning, openness, and trust, and encourages inclusive diversity and self-leadership with autonomy.

In summary, the words of Jim Collins: “Great companies should foster a productive tension between continuing and change”.