In Search of Stupidity obviously turned its insights into failure to the Leadership and Management arena and did so with some rather definitive conclusions…
“The main reason for company failure can be broken down into four basic types:
- Your company is based on fraud and/or the sale of illegal products.
- Your company is built around an unrealistic or ridiculous business assumption.
- Your company does not have a strategic vision or plan for success
- Your company has failed to execute business basics in the course of selling its products and services
As Merrill Chapman notes, there is not much advice for issues #1 and #2. In fact, business failure may be the least of your concerns versus something like jail. The latter two essentially parallel the two themes of Leadership and Management.
Leadership for upside driven by a ‘strategic vision or plan for success’. Management to minimise downside through ‘business basics’.