Why companies fail - A lack of focus on the "micro"

Much like physicists are trying to create a grand unified theory of all physics to explain all the various forces and particles, I started to think about a unifying theory about why companies fail. Now I know what you are thinking, there are many reasons and coming up with a single reason is silly. Don't worry I thought the same thing. But I didn't give up.

There are so many books out there such as "Innovators Dilemma", "Good to Great" and "Blue Ocean Strategy" that provide all sorts of reasons why companies don't achieve their potential. I think all of these books focus on the "macro" side of things. Things like corporate strategy, corporate focus, etc.

But the reality is that the "macro" result is the sum of many "micro" interactions. That is the topic of this blog post...what creates the types of negative micro-interactions that cause companies to fail. At the end of day companies are run by people and people interact with each other and it is these interactions that are of interest. This topic reminds me of Patrick Lencioni's book "5 Dysfuntions of a Team"

So I'll start with this hypothesis and then we can pick it apart.

All negative micro interactions are driven by the employee putting their needs before the companies need. So let's ask Why?

• Why - Because I have a desire or need that supercedes the needs of the organization
• For example - I will not share my opinion when asked because I fear for my job.
• As a result - They attempt to rationalize this disconnect by convincing themselves that there needs are aligned and that it is ok for me to not give my true opinion when asked.

Or let's try this one:

• Why - Because I have a desire to advance my career at the expense of the organization
• For example - I'm going to get "buddy buddy" with key influencers in the company so that I can become their "Yes" men in order to get the next promotion. 
• As a result - People have a tendency to hire/promote folks like themselves. Employees will see this "favoritism" and complain about politics and morale suffers.

Now multiply these interactions be every time they occur with all the employees in your company.  Healthy companies spend time focused on the "macro" and "micro" in order to improve.

What are your thoughts? I wonder if we can go look at companies that have failed and see if we can characterize their cultures and draw out key indicators of companies going in the wrong direction. It would be like "Good to Failed - Why companies fail" the exact opposite of most books that describe how to succeed. If you think about it, it actually make sense...it is easier to drive consensus on what is bad vs. what is good just like it is easier to say and agree on what "smells bad" vs. what "smells good".

Oh well...enough rambling for a Saturday morning.....