Saturday, May 30, 2009

Why Organizations/Humans Fail

Organizations/Humans create plans based on their view of what the world needs now and in future. This is entity's view of reality. It is based on certain assumptions regarding the various things that pervade this world.

As long as these assumptions about the world are good enough to create a theory about the world and predict future, organization/person keeps succeeding. At regular intervals there is a fundamental shift in people's perception such as what they want from the world, what they want to pursue in life, and how they want to live. Then many of the the assumptions that explained how the world functioned get invalidated.

Once the assumptions are wrong, any theory and action plan based on those assumptions is wrong. Companies don't question if the change has happened and if that needs changing the assumptions and creating a new plan. They because of earlier success try to do the same old things more efficiently instead of doing different things and eventually end up as failures.

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