Don't be a Victim of Your Own Success

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A couple of years ago I was hired to do a transformation of a janitorial company into a total facilities management firm. The company had been around for well over 30 years. The company's ‘market leader’ success was attributed to a significant number of government and private maintenance contracts. However, they were bleeding money, losing market share and brand appeal. There were several instances of cashflow issues, overdraft maxed out and a too often inability to pay the entire 600 plus staff on time. The owner wanted to stop the hemorrhaging and asked me to identify the problems.

Part of my analyses suggested that the company was suffering largely from classic signs of 'Too Big to Fail' syndrome. A phenomenon that affects many long-standing, large successful businesses that face a downturn.

While our own businesses would be considered micro, I thought that you might find some of the findings useful, if only to guard against the same occurring as you scale up your business.

1. Nothing Wrong Here. When you are the market leader you begin to believe that you will always be on top and that you are untouchable. There is a tendency to minimize any issues as trivial. To discount any criticism as irrelevant. The business fails to recognize that the market is changing and that the old ideas are no longer relevant for growth.

2. We have always done it this way. There are several systems and procedures that are no longer relevant, yet they remain in existence. Despite the unsuitability of some of the present approaches for the current day, no one steps forward to reengineer or reinvent the process. For instance, why are there so many manual book-keeping systems which could easily be rolled up into a more efficient and effective accounting package?

3. Fear of Change. Change makes the old way of doing things obsolete in many instances. Typically, staff unwilling or unable to change resist new ideas because they fear that they would be made redundant. Instead of pacifying those fears, they are allowed to fester causing, the very solutions the business needs to be undermined by the old ways of thinking.

4. Illusions of Grandeur. You fail to recognize that your business no longer commands the power and respect that it once did. In times past you could have picked up the phone and got a new line of credit without question. Now the bank manager asks you as the CEO to make an appointment and bounces your major supplier checks without even the courtesy of a phone call.

The message is that we

  • must not become complacent and constantly be aware of our environment.
  • must not be arrogant but instead, encourage and support new innovative thinking
  • be willing to discard our old models of doing business and reinvent ourselves
  • must be willing to interrogate our systems and procedures
  • must be able to accept the reality and do what is best in the interest of the business and the people it serves

Ultimately, by remaining vigilant, open to fresh ideas and not allowing complacency to step in the challenge of being a victim to our business success could be avoided.

Can you see any parallels to your own business?

Hugh

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Recent Comments

49

Hello Hugh,

A good example of your experience and a lesson to learn here.
But in my own business, I did not experience that yet, thanks.
But in my work, before at our travel agency we experience slowing down our income up to the point that our GM doesn't know what to do we experience every day the bad mood, instead of opening up the problem to us he was always nagging, I think we suffered nearly three months.

We had that problem when kidnapping was often happening in the country, and travel restriction already on the internet that no foreigners would travel to the country because it was dangerous. So most of the clients canceling their trips to my country big problem for us the employee and the owner itself. We're worried about losing our job. We have only 7 staff in all. Later our GM declared Insolvency. At that time, I decided to resign; some stayed and reduced workdays to understand the situation.
Thanks for the share, my friend,
Joyce



When management does not trust or involve the staff in decision making it almost always ends up badly. It really depends upon the culture of the organization as well and the leadership. I am happy you got out of that situation into an environment where you are able to shine.
Hugh

Exactly my friend Hugh!
After that Agency, I travel to Paris, France, for another exciting work, I think 3 to 4 times but that part of the work. Sometimes it's like an excuse so you can move/ or change to a better company.
Thanks, Hugh!
Joyce:-)

As one door closes another one opens. Wishing you well Joyce.

Thanks, my friend, Hugh! :-)

Some great lessons to be learned here. Luckily I don't have to deal with that yet in my business, as it is only me for now and in start-up phase. But one I experienced at my day job is the fear of change, We got over it, but it took some time. Thanks for the share ,Hugh :-)

You are very welcome Luc

Very well put together post Hugh , first up is that everything is changing and changing fast so people has to adapt, even animals and ants adopt to weather and several other survival techniques, remember iPhones 4 or Samsung Galaxy note 2 , well this comparison only show that we all of to adapt to new technologies, who do not, will be left behind
Good post Hugh I like the message in it

Yeah Shine and I know you are like me you want to be out front rather than behind. Have a super weekend bro.
Hugh

Thanks Hugh one day I will visit Trinidad , we play some cricket

Hi, Hugh, what I can say, but every one need success and so everything must be done with genius.
🎯🎯🎯🎯🎯🎯💫💫💫💫💫

Well said Mizanur

Hello Hugh very thought provoking, there's a company I know where they were losing money, a lot of money! A new guy goes into sort it out and it's as you say "we've always done it this way." He is no longer there as they couldn't except things needed to change.

Haven’t we all seen this Gary. Some businesses refuse to change.

Hey Gary
That's pretty much what happened to me as well. They received the report but really put in a robust implementation plan. Years later I now see them trying to many of the things I proposed. You cannot get emotionally invested. The client must determine what is best for them.

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