This article is a sequel to one of my earlier published articles titled ‘Building a strong organization’. This sequel looks at factors or organizational dynamics that will make organizations self-destruct. Collins Dictionary defines self-destruct as ‘to destroy itself automatically’ or ‘to greatly harm oneself or itself, specifically as a result of inherent fundamental flaws’. Succinctly, certain people and things are bound to be destroyed owing to the way they are programmed. Organizations are not excluded. The operational dynamics and templates of organizations determine how far they make it as entities. Organizations just like humans have life spans, some live longer than others. Research has it that the life span of organizations is decreasing. At this point, I would offer my opinions on why some organizations would self-destruct.
First, poor leadership is a factor that can make an organization self-destruct. That we have a leadership crisis in many organizations (private and public) is no news. The fact that people exist at the helm of affairs of different organizations does not imply leadership. Leadership is not about the position rather it is about the coordinated and strategic decisions and actions that guide organizations on a clearly defined path – a path that leads to the realization of set objectives. Organizations that have individuals (occupying leadership positions) without foresight and practical strategies are bound to self-destruct in no distant time. The quality of leadership of an organization is an indicator of where that organization is headed.
Second, poor management of brands (corporate and product/service) is capable of making organizations self-destruct. Ensuring always that corporate and product/service brands meet expectations of the target market is very important. The reverse would have negative financial implications for organizations. Another angle to having a strong corporate brand (that is mostly neglected by some organizations) is the effective management of employees’ perceptions. Employees are brand ambassadors of their respective organizations hence the narratives they weave matter. To manage the perceptions of clients and disregard those of employees implies deception – deception is not a value that guarantees organizational longevity.
Third, a lack of solid structures and processes will have an adverse effect on the longevity of an organization. As organizations expand, the need for structures and processes become inevitable. Solid structures and processes reduce the suffocating grip that an individual or individuals have on organizations which usually prevent them from functioning optimally. A true organization has authority properly distributed – no individual holds the organization hostage. Solid structures and processes ensure that organizations still function in the absence of an individual or a few individuals. It is also important to mention that it is not only the absence of structures and processes that could make organizations self-destruct, a total disregard for structures and processes could too.
Fourth, lack of a robust competitive strategy is certain to make an organization self-destruct. Organizations operate within different industrial spaces and the competition therein is usually stiff. This is expected because survival depends on outsmarting competition and engaging customers with a view to eliciting continued patronage. Having a competitive strategy transcends a pricing strategy, it entails effective positioning, promotion et cetera. Importantly, it also entails a solid human resource management strategy. The human capital of any organization represents its most inimitable and vital resource (many employers are yet to fully understand this). All these must be combined to form a robust competitive strategy. Like all sound strategies, they must be constantly reviewed to meet the ever changing needs of the industry and target market.
Fifth, change insensitivity is bound to make organizations self-destruct. The rate at which different industries are evolving owing to technological advancements, economic changes, political uncertainties et cetera is very fast. These changes are inevitable. Lest I forget, changes that take place in organizations need not be always triggered from without, it could be triggered from within. Organizations must position themselves to embrace change(s) and adapt accordingly in order to survive and remain relevant in the industrial space which they operate in. To be sensitive to change requires proactive and periodic assessments of happenings (in and out) of organizations and to take strategic steps in line with results obtained. If change happens unexpectedly, there should be a swift but tactical response. Being sensitive to change means to stay open to evolution. To resist or ignore change is to tread on a guaranteed path to extinction.
Sixth, consistent poor financial performance is bound to make any organization self-destruct. When the revenue of a company is on a steady decline, it becomes clear that the end is near except there is a timely intervention. More often than not, poor financial performance is as a result of weak financial management and control systems. Strong organizations strengthen revenue drive and minimize cost. Financial resources saved as a result of increased revenue drive and minimized cost yield nothing if they are simply saved. There should be consideration of a diverse investment portfolio. Guarding against poor financial performance requires a great deal of foresight and discipline. A total disregard for these will surely make an organization self-destruct.
In conclusion, organizations must endeavour to pay close attention to these factors especially as they expand operations. With growth comes more responsibilities, challenges and susceptibilities. These would have to be addressed proactively in order to survive and compete effectively. A consistent reactive approach is just as destructive as being negligent or ignorant.
Jude Adigwe
Adigwe is a certified Human Resource Management (HRM) professional and an Industrial-Organizational Psychologist. He offers consultancy services on OB and HRM issues. More details can be found on his website: www.adigwejude.com
